Greece tightens unemployment rules with new benefit system reform

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Unemployed individuals in Greece risk losing their benefits if they reject three consecutive job offers that match their qualifications, under a new framework proposed by the Ministry of Labor, according to tovima.com

The measure is part of a broader reform introducing a “front-loaded” unemployment support system. Under this approach, benefits are higher during the first months of unemployment and gradually decrease over time. Authorities say the goal is to provide stronger initial financial support while encouraging quicker re-entry into the workforce.

The new system includes three components. First, a fixed payment for all beneficiaries, starting at around 70% of the minimum daily wage in the first quarter and declining to about 20% by the second year. Second, a variable component based on an individual’s insurance contributions, available to those with at least 900 days of coverage in the past four years, rewarding longer employment histories. Third, additional supplements will cover holiday bonuses and extra support for families with children or single-parent households.

Although benefits may last up to 24 months, the final amount will depend more heavily on prior earnings and work history. This means some low-income or less experienced workers could receive less than the current standard monthly benefit of €565.

Implementation has been delayed, with the program still in a pilot phase extended through June 30, 2026. Currently, fewer than 30% of the 903,928 registered unemployed receiving benefits, highlighting gaps in coverage. Payments will also shift to prepaid cards, with half withdrawable in cash.

Source: tovima.com

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