Digital Work Card Transforms Greek Labor Landscape

In Greece, the implementation of the digital work card is being hailed as a landmark achievement in modernizing the labor market. Minister of State Akis Skertsos, in a statement marking Labor Day, emphasized how this digital tool, coupled with significant reductions in labor taxes and contributions, is fundamentally reshaping employment practices.

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Happy Labor Day to all!

Historically, Greece grappled with widespread undeclared and underpaid work, a persistent issue that previous governments failed to adequately address. This led to legitimate grievances from both employees, who faced exploitation, and employers, burdened by high labor costs that made legal employment less competitive. The current government positions these reforms as a direct response to these long-standing problems.

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One of the perennial and structural problems of the Greek labor market until 2019 was under-declared – hence underpaid or unpaid and uninsured – labor. No government of the past had managed or even tried to address it.

The digital work card system, along with fiscal adjustments, is presented not just as a regulatory measure but as a driver of economic growth and fairness. Official data indicates a dramatic increase in declared overtime hours, suggesting that work is now being properly compensated and insured. This shift is framed as a move towards a more transparent and equitable labor environment.

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The digital work card, in combination with the drastic reduction of taxes and contributions on labor, are two of the most emblematic reforms of this government.

While acknowledging that undeclared work has not been entirely eradicated, the government asserts that substantial progress has been made in curbing it within businesses. This initiative is proudly attributed to the center-right government of Kyriakos Mitsotakis, distinguishing it from policies typically associated with left-leaning parties. The narrative emphasizes a commitment to protecting workers' rights while simultaneously alleviating the financial pressures on businesses, fostering a virtuous economic cycle where legal compliance becomes the norm.

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This deeply pro-labor and at the same time liberal and developmental reform was implemented by the self-reliant center-right government of Kyriakos Mitsotakis. Not by some left or center-left party.