Disposable income to rise by €257 in 2022

The government is anticipating an increase in the average disposable income by 2.45% or 257 euros next year, from this year’s €10,495. This is based on the measures it plans to take, mainly the six-month subsidy for social security contributions and support to newly hired young workers.

That is according to the draft budget Athens submitted to Brussels last Friday, as all member-states have to do. The draft makes it clear that there will be no double tranche of the minimum guaranteed income next year, as is expected for this Christmas. The government analysis further projects the reduction of poverty and inequalities.

The version submitted to the European Commission provides for a slightly greater deficit (by 0.1% of gross domestic product) in 2022, at 1.2%, and slightly smaller (by 0.1% of GDP) for this year, at 7.3%, compared to the first draft tabled in Parliament two weeks ago. It is possible that Athens is projecting a possible small additional margin for support measures against the energy crisis.

Meanwhile it has left its growth forecast for this year unchanged at 6.1% and 4.5% in 2022.