The new labor bill, presented by Minister of Labor Niki Kerameos on Monday (June 30, 2025), includes a significant provision: the extension of social security contribution exemptions to include salary increases outlined in collective labor agreements as well as those voluntarily offered by employers. While this aspect of the legislation did not receive widespread attention initially, it is worth highlighting due to its wide-ranging benefits.
Following the recent removal of additional social security contributions on overtime, night shifts, weekend, and Sunday work, which quickly led to higher incomes for employees, reduced costs for businesses, and a 48% increase in revenues for pension funds within the first month, this new step takes the reform even further.
Now, salary increases from collective agreements or employer-initiated raises will also be exempt from extra contributions. This simplification aligns with the overall spirit of the bill and has already proven to deliver multiple fiscal and social benefits.
In times when public debate often focuses on controversy rather than results, it’s crucial to pay attention to what actually works—not just what is being discussed.