"Our strategic goal at this stage is to address the consequences of the pandemic, that is why we support employment, the goal is to prevent the rise of unemployment," she told the Parliamentary Finance Committee.
As he said, € 450 million were given to support the employed and unemployed and an additional € 100 million for the operating expenses subsidy plan for small and medium enterprises. These costs are covered through the European SURE fund from which Cyprus has already received € 250 million until the first tranche, while another € 229 million is expected in early 2021. He also recalled that by decision of the Council of Ministers additional measures were approved with an estimated expenditure € 130 to € 150 million by March 2021.
According to Ms. Aimilianidou, the plans that started with the outbreak of the pandemic last March, supported more than 190.000 workers, more than 23.000 self-employed, as well as unemployed people who had exhausted the unemployment benefit, which with the decisions taken has expanded.
"All these plans have helped a lot so that we do not have a dramatic increase in unemployment," he said.
Answering a question, Ms. Emilianidou said that the estimate is for an increase in unemployment of around 8% at the end of the year due to the consequences of the pandemic. He stressed, however, that "everything depends on how the pandemic will proceed and whether there will be a third wave." That is why estimates cannot be made, since the data is fluid, he added.
According to the note submitted to the Commission, the Ministry's budget for 2021 amounts to € 1,41 billion, including the Structural Funds projects, showing an increase of 12% compared to 2020. If the various CA funds are added, it amounts to at € 3,1 billion
Moreover, Ms. Aimilianidou rejected positions that Cyprus lags behind in social benefits, saying that together with the various Social Security funds the total of social benefits and expenses is close to € 2,91 billion. As she said, 93% are given either through of the budget, either through the CA funds.
In particular, as he mentioned, the total of the various benefits of the CA, such as social pension, unemployment benefit, statutory pension, widow's pension, amount to € 1.846 million, while the remaining benefits and social benefits, such as the EU, sponsorship for pensioners, social pension amount to € 1.068 million.
Responding to AKEL's remark that social benefits are reduced compared to 2020, Ms. Emilianidou said that the 2021 budget does not include the € 530 million that have been spent through support measures.
From 2021 electronic submission and payment of KA allowances
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Referring to the administrative reorganization of the Ministry, Ms. Aimilianidou said that with the experience we gained since March, for electronic payment of benefits in just one month, we have paved the way for changes, especially in the Social Security system.
That is, he explained, payments from the end of 2020 in cooperation with the Ministry of Research, Innovation and Digital Policy "we aim to abolish all the funds located in the provincial offices and all payments of CAs to be made electronically."
As he said, this change will not only reduce the suffering of the citizens, but will lead to the savings of 54 officials who are currently employed in the funds of the CA.
He also said, our goal, and I believe that we will succeed, so that with a single electronic portal the applications can be submitted electronically and every citizen with the electronic submission knows where his application is and how long it can be executed .
Radical changes in the pension
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The Minister of Labor agreed with the remark of the President of DIKO, Nikola Papadopoulos that the pension has closed its cycle.
"I agree that there is a need for a complete restructuring of the pension system in Cyprus and the Social Security law," he said, adding that based on the new data, a change is needed.
"The goal is to make radical changes in 2020," he added, explaining that there is a disincentive to paying contributions, since if someone closes 15 years of work and works for another ten years, the increase in his pension is negligible.
Describing the change of the pension as a big capital, Ms. Aimilianidou said that it was requested and approved by the Attorney General so that lawyers can help the Ministry to prepare a relevant bill.
Saying that with the change of the system, the € 76 million given by the state from the permanent fund, will be transferred to the pension, Ms. Aimilianidou said that "the most important thing is to give incentives so that there is no undeclared work".
€ 19 million to support low-income retirees
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At the same time, Ms. Emilianidou said that after the approval of the budget of € 19 million in December, pensions will be granted retroactively, so that no pensioner is below the poverty line. He noted that he presented to the parties the scenarios that exist in order to reach the increase of the low pensioner allowance.
Regarding the poverty and social exclusion index, Ms. Aimilanidou said that in 2108 the index was at 36,9%, but after the payment of social benefits, especially the EU, the index fell to 15,4%.
Moreover, regarding the wage gap between men and women, the Minister of Labor said that this index in Cyprus is at 13,7% compared to 14,8% which is the European average, "without this meaning that we are satisfied with the wage inequality between men and women ".
Regarding undeclared work, the Minister of Labor said that in 2009 it was at 26% and fell to 17,5% in 2017, while with the passage of the legislation on undeclared work today it is at 12%.
Regarding the minimum wage, Ms. Aimilianidou said that although the study was completed in February 2020, it was not implemented due to the pandemic. "You can not apply a minimum wage when unemployment rises. There is a finished study. "The government's decision is to apply a minimum wage in full-time conditions," he said.
In statements after the session, DISY MP Onoufrios Koullas expressed satisfaction with the "dynamic reaction" of the Ministry of Labor and the support it provides to the 190.000 employees and the self-employed in the midst of the pandemic.
He referred to the payment of € 19 million to low-income pensioners, saying that "it now seems possible to achieve for the first time in the history of the Republic of Cyprus that no pensioner is below the poverty line".
On behalf of AKEL, the Member of Parliament and Chairman of the Committee Andreas Fakontis said that the support measures of the Ministry are moving in the right direction, adding that "we found that the budget of the Ministry for 2021 will not be able to absorb the shocks and address the effects of the coronavirus pandemic, either immediately or in the long term. "
"Measures to support vulnerable groups of the population, workers and the unemployed follow the footsteps of recent years without adding anything new," he said.
DIKO MP Charalambos Pittokopitis expressed satisfaction with the work of the Ministry and the Minister herself in this difficult period. He noted, however, that a complete and radical overhaul of the country's existing pension system is required. "The cycle of the pension system has been closed for a long time and its complete revision is required," he said, adding that the suspension of the actuarial penalty of 12% in retirement before 65 is also required.ο year starting from the heavy professions.
On behalf of EDEK, Kostis Efstathiou mentioned the acceptance and identification of the Ministry of Labor with the party's position that no retiree should live below the poverty line. For this reason he welcomed the position of the Ministry for the payment of € 19 million to low-income retirees and added that EDEK continues to propose the provision of supplementary pensions to all low-income retirees. "It is inconceivable to have our fellow human beings who depend on a pension and it is below the acceptable limits of human life," he said.
Finally, the MP of the Cooperation of Democratic Forces, Marinos Mousiouttas characterized the issue of pensions and the inequalities that exist in it as a "big issue" and added that he expects the meeting of the Cooperation with the Minister of Labor to discuss the issue.
"We believe that the issue of pensions should be made more accessible to all citizens," he concluded.