Social Security Debt Collection Center

The Single Social Security Entity (EFKA) could collect an extra 4 billion euros from large debtors as well as from debts that increase disproportionately due to very high additional fees and surcharges, if the appropriate mechanism were in place.

The tax administration and the Social Security Debt Collection Center will be sending notices to those owing over 150,000 euros in the next few days, calling on the debtors to the state and insurance funds to settle their dues.

Only those} who have small debts, under 10,000 euros, to the social security funds can repay them, while individuals and businesses with larger debts, due to the surcharges, burden the social security system with ever greater debts.

The planning of the Single Social Security Entity (EFKA) for the next few months provides for the closure of tens of thousands of pending issues.

Retroactive refunds to tens of thousands of insured persons, the cancellation of debts that have not been sought for 10 years, as well as "rebates" for payment of contributions are to be dealt with by this fall.

The debts that 1.4 million workers, employers, self-employed and farmers owe to the social security funds have exceeded 35 billion euros, or nearly 20 percent of gross domestic product, while just one in four debt settlement plans are adhered to.

The Social Security Debt Collection Center (KEAO) will publish the names of 18,146 debtors with dues that exceed 15,000 euros each to the Single Social Security Entity (EFKA) this winter unless they pay up or make arrangements to settle their debts by November 30.

In view of the clear and present danger that the revenues of the new Single Social Security Entity (EFKA) will crumble due to the excessive contribution-and-tax burden on hundreds of thousands of self-employed professionals and farmers, the Labor Ministry is seeking a lifeline in the revenues of the former Social Security Foundation (IKA) and the Social Security Debt Collection Center (KEAO).

The government is putting forward a plan that would allow small enterprises and self-employed professionals to settle debts to social security funds of up to 20,000-30,000 euros.

The revenues of the Social Security Debt Collection Center (KEAO) from bank account confiscations in the year to end-August have come to 25 million euros, official data show.

Another 125 million has been collected through the entry of individuals and companies with contribution debts in the 12-tranche payment plan, after they saw their bank accounts confiscated.