The second phase of emergency financial support extended by the Greek government to wage-earners and businesses, amid the ongoing corona virus pandemic, will come next month, with reports in Athens pointing to the German “Κurzarbeit” model, in other words, a type of part-time or rotating employment.
The first and primary support extended over the initial 45-day period was an 800-euro benefit to employees whose businesses closed their doors due to restrictions aimed to prevent exposure to the Covid-19 virus.
The Κurzarbeit model offers businesses and employers the ability to cut daily work hours in half, with a commensurate reduction in pay, i.e. in half. However, the state covers an employee’s reduced pay by 60 percent, i.e. a 20-percent reduction in pay for a half day’s work.
The aim of the job subsidy plan is to prevent lay-offs once the initial 45-day suspension ends, as well as to avoid possible cuts in wages, and by extension an even further economic downturn.
