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← Overview Database of Innovative Social Policies in Europe

Wage promissory note payment

Country of implementation
Greece
General short description of the innovation
The wage promissory note payment is the new obligatory method to pay the laborers and those working in cleaning, deliveries and domestic work according to which the employer buy a special promissory note from a bank writes the amount of payment, the working time and the name of the beneficiary and gives it to the worker instead of payment in cash. Afterward the worker cashing it at the bank which extracts 10-25% of its value as social contributions.
Target group
Total Population
Policy Field
    Type of Policy
      Scope of innovation
      General description of (intended) objectives and strategies
      The aim of this measure is to reduce informal employment and to support financially the insurance funds. All informal workers have no right to social insurance unless they are paid according to this method. The great number of informal workers in Greece are migrants and youths
      Nature of the innovation-short-term perspective
      systemic
      Nature of the innovation-long-term perspective
      programmatic
      Type of ideal-typical strategy for the innovation
      • dualisation
      Type of innovation
      • new form of policy monitoring and/or evaluation
      • new policy, practice or measure
      New outputs
      • benefit eligibility
      • governance
      • regulations of the labour market
      • wages
      Intended target group
      Youths / Migrants / women /
      Working age population
      • employment situation
      • main source of income: paid work
      Actors involved in policy-making/implementation and/or evaluation
      • agency or national social insurance body
      • central state
      • employees (organised or individual)
      • employers (organised or individual)
      Intended output
      • benefit eligibility
      • governance
      • regulation of the labour market
      • wages
      Intended and unintended outcomes
      not defined
      Clarification of outcomes in terms of impacting resilience and labour market inclusion
      This measure is expected to reduce informal employment
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