Employers may face an additional cost of up to €41 per month for each employee working remotely from home, under new provisions on the remote work allowance.
This figure comes from a proposal presented to social partners regarding the cost of teleworking, which the Ministry of Labour intends to publish in the Official Gazette of the Republic, with effect from 1 November.
According to information reported by Economy Today, the maximum cost employers will have to pay for “full-time” remote workers is €41 per month, while the minimum will be €26, provided that the employer supplies the necessary equipment and covers communication services (telephone/internet).
Not applicable to the Public Service
The Ministry of Labour clarified that the remote work allowance will apply to the private and semi-government sectors, not to the public service.
This stems from the Law on the Regulation of the Framework for Teleworking, in force since November 2023. A ministry representative confirmed this during Monday’s discussion of a separate bill on introducing telework to the Public Service.
Any possible allowance for the Public Service would fall under the jurisdiction of the Personnel Department of the Ministry of Finance and is unrelated to the forthcoming Labour Ministry notification. The ministry intends to proceed as soon as possible, with implementation from November this year.
Minimum costs for teleworking
The existing legislation provides that the Minister of Labour, after a cost study and consultation with employer and employee representatives, sets the minimum monthly amount employers must pay remote employees, published in the Official Gazette.
Based on this, the ministry has notified employer organisations and trade unions of its intention to set the following minimum monthly amounts for full-time remote work:
- €26 for the use of home workspace
- €7 for communication costs
- €8 for equipment maintenance and repairs
The notification will specify that equipment costs will not apply if provided directly by the employer. Similarly, communication costs will not be paid if the employer covers them directly through a contract with a telecom provider.
On this basis, the maximum monthly allowance reaches €41 per teleworker. For part-time remote work, amounts will be paid proportionally.
The ministry also clarified that telework allowances are not considered salary but deductible business expenses, exempt from tax, fees, or social insurance contributions, as already provided by law.
Concerns from employers
Social partners did not unanimously welcome the briefing. Employers in particular expressed concern that setting a minimum telework allowance, though provided for by law, could undermine the flexibility that remote work offers both sides.
They suggested allowing alternative arrangements, such as individual agreements, stressing that telework can generate mutual benefits. Given that employer relations with the Ministry of Labour are already strained over debates on the Cost of Living Allowance (ATA), reactions on the issue may intensify. The matter could also be raised at the joint meeting of the executive committees of OEB and CCCI.
Comparison with Greece
It is worth noting that Greece also has a statutory “minimum telework cost.” A ministerial decision there set the remote work allowance at €28 per month, reduced by €5 if the employer provides equipment and by a further €10 if the employer covers the worker’s communication costs.
Also read: ATA law for private sector deemed unconstitutional
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