Manpower Employment Organization

IKA-ΕΤΑΜ SELF-INSURANCE FOR DISMISSED PERSONS AGED 55-64 (Article 66, Law No. 3996/2011, modifying Article 74 of Law No. 3863/2010).

 

Benefit description
Working people aged 55-64 and insured with ΙΚΑ-ΕΤΑΜ, whose indefinite-duration (either full- or part-time) employment contract is terminated (regardless of this being a collective or individual dismissal) by private enterprises and, more generally, employers of the private sector, and provided that they have completed at least 4,500 insurance days or fifteen (15) insurance years with any primary insurance institution, and that they are still unemployed, are entitled to self-insurance with ΙΚΑ-ΕΤΑΜ.
The right of self-insurance with ΙΚΑ-ΕΤΑΜ can be exercised within sixty (60) days after the termination of the indefinite-duration employment contract. Those dismissed persons that did not exercise their right within the two-month period provided for after the publication of Law No. 3863/2010 may still exercise it within sixty (60) days after the publication of Ministerial Decision Φ.11321/22575/1810/3-10-2011 (Government Gazette issue 2297/Β/13-10-2011), namely from 13-10-2011 to 13-12-2011.
The dismissed persons come under the IKA-ETAM scheme for the Branch of Insurance and the Branch of Sickness Benefit in Kind. The salary corresponding to the minimum wage, as determined by the current National General Collective Labour Agreement, is considered to form the basis for calculating the monthly contributions.
The cost of self-insurance must be shared by the former employer –the one who has terminated the employment contract–, namely the private enterprises and, more generally, the private sector employers, paying: i) fifty per cent (50%) of the self-insurance cost for insured persons aged at least 55 to 60 years and until the dismissed person completes both the age limit and the number of insurance days required for full old-age pension in their own right and for up to a maximum of three (3) years; ii) eighty per cent (80%) of the self-insurance cost for insured persons aged at least 60 to 64 years and for a time period until the dismissed person completes both the age limit and the number of days required for the provision of full old-age pension in their own right and up to a maximum of three (3) years.
The OAED will cover the remaining amount of the self-insurance cost during the time the employer (who has terminated the employment contract) is obliged to pay, with a percentage of 50% or 20% of the self-insurance cost. The relevant cost is to be borne by the OAED LAEK fund (Special Fund for Employment and Vocational Training).
Pursuant to Article 66 of Law No. 3996/2011, as detailed by Article 1 of the aforementioned Ministerial Decision, the beneficiaries of the self-insurance status are persons insured with ΙΚΑ-ΕΤΑΜ whose indefinite-duration (either full- or part-time) employment contract was terminated between 15/7/2010 and 31/12/2012, regardless of this being a collective or an individual dismissal, provided that:

a. They have completed a total of 4,500 insurance days or fifteen (15) insurance years with any primary insurance institution.

b. They have completed, on a calendar basis and on the specific date of the employment contract termination, 55 years of age, and they are not aged over 64 years on the aforementioned date.

c. They remain unemployed and registered with OAED.

d. They submit a relevant application to the local IKA-ETAM office in their place of residence within 60 days of the employment contract termination date. Regarding persons dismissed after 15/7/2010 (i.e. the date on which Article 74, § 4-5, Law No. 3863/2010, entered into force) and until 04/08/2011 (the previous date of entry into force of Law No. 3996/2011), who have not submitted an application to ΙΚΑ-ΕΤΑΜ, the deadline for registering with OAED and submitting an application to ΙΚΑ-ΕΤΑΜ is set at 60 days after the publication of the aforementioned Ministerial Decision (13.10.2011 – 13.12.2011).

The following categories are excluded:

a. Pensioners in their own right of all social security or public sector institutions, as well as those who, at the time of their employment contract termination, have cumulatively completed both the age limit and the number of insurance days required for full old-age pension in their own right.

b. Persons dismissed from enterprises that are governed by the provisions of Law No. 2190/1994 (GGI 28 Α) in terms of personnel recruitment.

c. Home workers, as described in the 1st case of §1, Article 20, Law No. 3863/2010.

d. Dismissed persons whose employment contract termination is attributable to a fault of their own.

e. Dismissed persons whose employer is a spouse or first-degree relative.


In view of the above, the competent OAED services (KPA2/local PES) will issue a Certificate stating that the aforementioned beneficiaries are registered unemployed. The same Certificate will also state that they come under the provisions of Article 66 of Law No. 3996/2011. Moreover, the competent OAED services (KPA2) will proceed to the attestation of the beneficiary’s copy of the employment contract termination.

EPAS - ΙΕΚ