Greece Plans Changes to Parental Leave and Children’s Insurance

Greece’s Ministry of Labour and Social Security has proposed significant changes to parental leave, children’s health insurance coverage and pension entitlements under a new bill currently undergoing public consultation.

Although the legislation primarily focuses on the use of artificial intelligence in the labour market and the implementation of EU Directive 2024/2831 on platform workers, it also introduces substantial changes to employment rights and social insurance arrangements affecting thousands of people.

Changes to pension and insurance entitlements

The bill expands eligibility for monthly allowances from local government authorities to include former prefects. Applicants must have completed at least 20 years of actual service in elected positions, including prefects, mayors, community presidents or council members. They must also have served at least one full four-year term in a position of responsibility and reached the age of 67.

The legislation also allows elected regional governors to count their insurance contributions towards eligibility for the benefit.

It further clarifies pension entitlements for people who held simultaneous insured positions in the public sector.

For pensions granted by 12 May 2016, authorities may calculate pension payments using service in elected positions, even when that period overlaps with other public-sector employment, provided the relevant insurance contributions were paid.

For applications under Law 4387/2016, known as the Katrougalos Law, applicants have two options: receive a single contributory pension calculated by combining earnings from 2002 onwards, or receive two separate pensions if they established the relevant entitlement by the end of 2016.

The financial benefits will apply retrospectively from 20 April 2022. The legislation also allows authorities to reconsider previously rejected applications.

Extended insurance coverage for childrenThe bill also expands health insurance protection for dependent children.

Children covered as indirect members under their parents’ insurance will retain their insurance eligibility until the last day of February in the year following their 18th birthday.

The proposed provisions also allow unmarried children to rejoin their parents’ insurance coverage after losing their own entitlement through employment, regardless of whether they are unemployed or studying.

Young workers up to the age of 25 will also retain coverage through their parents until they accumulate the required insurance contributions to qualify for independent coverage.

Meanwhile, unemployed young people and students will continue to receive protection through their parents’ insurance until the age of 24, with the possibility of extending coverage until the age of 26.

More flexible parental leave arrangements

The proposed legislation introduces significant relief for working parents by removing the requirement that employees complete one year of actual service with the same employer between two consecutive periods of parental leave for different children.

Each child will now carry an independent entitlement to parental leave.

The existing four-month parental leave entitlement will remain available until a child reaches the age of eight. Greece’s Public Employment Service (DYPA) will pay an allowance equivalent to the minimum wage for the first two months.

The bill also provides an additional two months of subsidised leave for parents of multiple births and doubles the leave entitlement for single parents.

Parents will also gain greater flexibility in using their leave, including through reduced working hours or individual days off.

The subsidised leave period will count in full towards pensionable service. Upon completing their leave, employees will have the right to return to the same or an equivalent position.

The legislation also safeguards the relevant parental leave allowance by making it tax-free and exempt from seizure.

(Source: AMNA)

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