Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Greece

Equality of Treatment (Accident Compensation) Convention, 1925 (No. 19) (Ratification: 1936)
Social Security (Minimum Standards) Convention, 1952 (No. 102) (Ratification: 1955)

In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 19 (equality of treatment) and 102 (minimum standards) together.

The Committee notes the observations of the Greek General Confederation of Labour (GSEE) received on 1 September 2017.

Articles 71(3) and 72(2) of Convention No. 102. Preserving the viability of the social security system. With respect to its previous comments on preserving the viability of the social security system, the Committee notes the information provided by the Government in its report concerning the adoption of Law No. 4387/2016, on the basis of which the Greek social security system was redesigned as a unified system based on the general principles of ensuring decent living and social protection in terms of equality, social justice, redistribution and intergenerational solidarity. The Government indicates that the said Law establishes uniform rules for all, old and new insured persons (before and after 1 January 1993) including employees in the private and public sectors and self-employed, and strengthens social justice for precarious social groups by means of establishing a non-contributory national pension and ensuring high benefit replacement rates. The Committee further takes note of the Government’s indication that a basic innovation of the new social security system is the establishment of the Single Unified Social Security Fund (EFKA), which consolidated the main social insurance institutions and started operating from 1 January 2017. The Committee notes, as indicated by the Government, that, in accordance with Articles 7 and 8 of Law No. 4387/2016 since 13 May 2016, the main old-age, invalidity and survivors’ pensions consist of a national part and a contributory part. The Government further specifies that the national part of the pension is not funded by insurance contributions but directly from the state budget. Its full amount is set at €384 per month and it is paid in full if the person concerned has at least 20 years of contributions and 40 years of residence in Greece. The amount of the national pension is reduced by 2 per cent for each year needed to complete the 20-year contribution condition, provided however that at least 15 years of contributions have been completed. If the insured has not completed 40 years of residence in Greece, the final amount of the national pension is decreased proportionally. The contributory part of the pension is calculated on the basis of the average pensionable earnings over the entire working life before retirement. The Committee notes the GSEE’s observations indicating that the reform of the social security system pursuant to Law No. 4387/2016 has not affected the level of the minimum protection and that the impact of continuing austerity measures on social security rights remain topical. The GSEE refers to the Decisions and Recommendations of the Greek National Commission for Human Rights (GNCHR) which indicate that the 2016 reform is characterized by fiscal and collection oriented measures rather than insurance based and operational effectiveness measures. The GSEE further points out that the GNCHR consider that the 2016 reform focuses on spending cuts and revenue increases without a theoretically or empirically grounded vision for a new and efficient social protection system. In addition, the GNCHR indicates that in the face of the risks posed by negative demographic changes and the severity of the economic crisis, the 2016 reform does not effectively address the historical structural pathogeny and inefficiency of the Greek social protection system including the dependence of the social system on the state budget, the mismanagement, financial in particular of social security system funds and resources. Recalling that in accordance with Articles 71(3) and 72(2) of the Convention, the Government shall accept general responsibility for the due provision of the benefits provided in compliance with the Convention and the proper administration of social security institutions and services, the Committee requests the Government to indicate the measures taken or envisaged to ensure the sustainability of the social security system established by Law No. 4387/2016 and its ability to pay benefits.

Social security and reduction of poverty. With respect to its previous comments on the measures necessary to reduce poverty, the Committee notes the Government’s indication that in accordance with the Law No. 4335/2015, the “Social Solidarity Income” scheme which provides income support, access to social services and goods and actions for (re)integration into the labour market is being implemented throughout the country since 2017. The Committee also takes note of the data provided by the Government on the poverty level among various categories of population and household. The Committee also notes the GSEE’s observations indicating that according to the 2016 report of the UN Independent Expert on the effects of foreign debt, in 2014, a substantial number of retirees had pensions well below the poverty threshold, and even the subsistence threshold, all in the absence of a minimum safety net to address the shortcomings of social security. It further indicates that over 3.8 million people in Greece (36 per cent of the population) are at risk of poverty or social exclusion and over 1 million people can be considered as extremely poor, meaning that they have less than 40 per cent of the median average income at their disposal. The Committee further notes the GSEE’s reference to the 2015 concluding observations of the UN Committee on Economic, Social and Cultural Rights on Greece indicating the insufficient assistance provided to persons whose benefits have been reduced or discontinued and the cuts and stringent terms and conditions imposed on non-contributory old-age benefits, which have a negative impact on the living conditions of older persons and their families. Recalling that the level of social security benefits shall be not less than the requirements set out in Part XI of the Convention, and in particular, shall be sufficient to maintain the family of the beneficiary in health and decency (Article 67), the Committee hopes that the Government will take the necessary measures to ensure the level of social security benefits guaranteed by the Convention and requests the Government to keep it informed in this respect.

Part II (Medical care). The Committee notes the information provided by the Government in reply to its previous request concerning the number of persons insured under Part II of the Convention.

Part III (Sickness benefit). Article 16. Rate of benefit for the first 15 days of incapacity for work. The Committee notes from the 35th (2017) Government’s report on the application of the European Code of Social Security (Code) which contains the same provision, that the amount of sickness benefit is equal to 50 per cent of the presumed wage of the insurance class to which the insured person belongs, which is determined based on the average salary of the last 30 working days of the calendar year prior to notification of the incapacity for work. The Committee further notes that the amount of sickness benefit is increased by 10 per cent for each family member protected and cannot be higher than the presumed wage of the eighth insurance class, or 70 per cent of the wage of the insurance class based on which the allowance is calculated. In addition, every year, for the first 15 days of absence from work due to illness, however, the benefit is only equal to 50 per cent of the daily sickness allowance, increased by 10 per cent for each protected family member. In any case, it cannot exceed the presumed wage of the third insurance class, or 35 per cent of the wage of the insurance class under which the allowance is calculated. The Committee observes that the reduced amount of the sickness benefit payable for the first 15 days is unlikely to attain the level prescribed by the Convention in its Article 16 in conjunction with Article 65 and the Schedule appended to it, which is 45 per cent of the wage of a standard beneficiary defined as a person with a dependent spouse and two children. The Committee therefore requests the Government to calculate the replacement rate of the sickness benefit provided to the standard beneficiary in the first 15 days of absence from work as indicated in the report form for the Convention.

Articles 17 and 18. Duration of benefit for public sector employees. The Committee notes from the 35th (2017) Government’s report on the application of the Code which contains the same provisions that a public sector employee who has completed a service period of at least six months is entitled to paid sick leave for as many months as the number of his or her years of service. The Committee further notes that from the total possible duration of sick leave, the days of sick leave that the employee has received during the previous five years are deducted. The Committee observes that, in order to acquire the right to receive sickness benefit in the form of paid sick leave for at least 26 weeks (six months) guaranteed by the Convention, a public sector employee has to complete six years of service without taking any sick leave during the last five of them. The Committee recalls that Articles 17 and 18 of the Convention guarantee a minimum duration of sickness benefit of 26 weeks and allows a qualifying period only insofar as it is deemed necessary to preclude abuse. The Committee considers that a six-month qualifying period can usually be considered sufficient to this end. The Committee thus requests the Government to indicate whether public sector employees are entitled to any benefit during periods of sick leave exceeding the period laid down in Article 54 of the Code of Public Civil Administrative Employees (Law No. 3528/2007).

Part VI (Employment injury benefit). Article 36(2) and 38. Benefits for incapacity of less than 50 per cent. The Committee recalls its previous comments in which it noted that, in order to receive an employment injury invalidity pension, insured persons employed in the private sector must have a disability corresponding to at least 50 per cent of incapacity for work. The Committee observed that this limitation was not compatible with Articles 36(2) and 38 of the Convention, which require the payment of a partial pension in case of employment injury also to victims of employment injury with incapacity of less than 50 per cent throughout the contingency. The Committee therefore requests the Government to take appropriate measures, without further delay, in order to bring the national legislation in this respect in compliance with Articles 36(2) and 38 of the Convention.

Part XI (Standards to be complied with by periodical payments). Article 65. Replacement rate of old-age, invalidity and survivors’ benefits. The Committee notes from the 35th (2017) report on the application of the Code, which contains the same provision, that due to changes in the economy, the Government decided to use a new reference wage, calculated in accordance with Article 65(6)(b), which is the wage of a skilled male employee from the industry or economic activity with the highest number of male employees. The Committee further notes the Government’s explanation that, as the economic activities with the highest number of male employees (wholesale, accommodation) do not have any manual workers, it was necessary to move to the third economic activity with the highest number of employees, which is manufacturing (D), where the group of skilled male employees constitutes around 60 per cent of all employees. In this economic activity, the Unified Social Security Fund identifies the wages of skilled male manual workers (ISCO groups 7 and 8) and calculates the average wage for this group. The Committee takes note of this information and requests the Government to provide calculations on the replacement rate of old-age, invalidity and survivors’ benefits based on the new reference wage determined in accordance with Article 65(6)(b) of the Convention.

Article 65(10). Adjustment of benefits. Noting the adoption of Law No. 4387/2016, the Committee requests the Government to provide explanations on the mechanisms established for the regular adjustment of benefits in accordance with Article 14(4) of Law No. 4387/2016 and to set out how this adjustment provision has been implemented in practice since 2016 notably by providing the statistical data requested in the report form for the Convention for the period 2016–18.

Application of Convention No. 19 in practice. In its previous comments, the Committee requested the Government to provide information on the manner in which industrial accidents are dealt with when they involve foreigners without the necessary documentation on their legal residence in Greece. The Committee also requested the Government to provide information on the manner in which compensation to persons injured in industrial accidents or their dependants is provided abroad. The Committee notes the Government’s indication in its report that based on the Law No. 3850/2010 ratifying the Code of Laws related to Occupational Safety and Health, the Law No. 3996/2011 reforming the labour inspectorate, regulating social security issues and other provisions, and the Presidential Decree No. 113/2014, all occupational accidents are handled in a single manner, irrespective of whether the workers are foreign or Greek nationals or whether their working relationship is legal or not. The Committee further notes the statistical data on the number of occupational accidents for 2015 showing that workers originating from non-European Union countries were involved in 6.4 per cent of occupational accidents according to Regional Units of the Labour Inspectorate. The Committee takes note of this information and reiterates its request on the manner in which compensation to persons injured in industrial accidents or their dependants is provided abroad in case they reside in the territory of a Member, party to the Convention.