January pensions in the air, says labor minister - The Best from Greece

If Greece does not receive the sixth tranche of aid funding from the European Commission, the European Central Bank and the International Monetary Fund, it may be unable to meet its financial commitments in December, the labor minister said on Tuesday morning.

Speaking on Skai TV, Giorgos Koutroumanis said that unless Greece's creditors agree to disburse 8 billion euros of funding within the month, the state may be unable to pay workers' Christmas bonuses or pensions for January.

He also said that subsidiary are in for further reductions of up to 20 percent, and maybe even 50 percent, over the course of a few months, while this reduction will probably also affect existing pensioners and not just newly pensioned workers.

The labor minister said that the simultaneous payment of salaries, social security benefits and income tax will begin on March 1, adding that the so-called «work card,» or an electronic record of payments, will also go into effect on the same date and that businesses using the electronic system may be given a break on social security payments by up to 10 percent.

Koutroumanis agreed that social security benefits are too steep for many businesses and confirmed that the ministry is planning to provide some reductions, especially in sectors that can generate employment.