Legislative Reforms and Labor Market Dynamics: The Impact of Legalizing Undocumented Workers in Greece

The most recent legislative measures in Greece concerning immigrants without legal documents provide for the granting of a legal residence permit to those who have been residing in the country until November 30, 2023, for three years. This amendment is incorporated into the insurance bill and reduces the requirements from seven to three years. It is estimated that this measure affects approximately 28,000 workers.

Regarding the impact on the labor market, this regulation seems to be connected with the need for labor hands, mainly for agricultural workers. The labor market in Greece has faced many challenges, especially after the pandemic, with significant changes in labor law and the introduction of new forms of employment such as teleworking. Legislative changes, such as the digital work card, have also affected the labor market. It is important to note that these legislative measures aim to bring order and combat undeclared work, while the residence permit is linked to the labor supply.

The legislative regulation that allows undocumented immigrants to obtain a three-year residence permit and to work legally in Greece is expected to have a positive impact on the social security system. The beneficiaries of this regulation will pay taxes and social security contributions for the three years they will be legal workers. This means that they will contribute financially to the system, which will help strengthen the social security funds.

Furthermore, the legal integration of immigrants into the labor market can help combat undeclared work and exploitation, as well as promote social inclusion. This could lead to a fairer and more efficient labor market, with benefits for both workers and the economy as a whole. However, the exact impact on the social security system will depend on many factors, such as the number of individuals who will join the system and the overall economic performance. It is important to monitor developments and conduct analyses to adjust policies according to the needs of the market and the social security system.