Social Security

Greece is edging very close to both the European average and that of Organization for Economic Cooperation and Development countries in non-salary costs with the reduction of social security contributions by one percentage point that will apply from the beginning of 2025, for both private and public employees.

Those who received social initiatives last year, namely pensioners, senior citizens, parents, the disabled, and the economically disadvantaged, will again this year (it appears) be beneficiaries of the new cheque to be “distributed” by Prime Minister Kyriakos Mitsotakis at the TIF, with money from the 300 million euros of the extraordinary tax on refineries.

Next week, the method of calculating the social security contributions of 800,000 freelancers, self-employed and farmers will be determined.

The law stipulates that as of 2025, the contributions of the self-employed will be decoupled from inflation and linked to the rate of wage adjustment.

The reliance of Bulgaria's State Social Insurance (SSI) on the state budget is set to continue growing, according to an actuarial report by the National Social Security Institute (NSSI).

At the end of June, EFKA, the cosolidated social security agency, had delayed issuing 19,166 pensions, mostly to professionals, freelancers and farmers.

From 2020 to the end of 2023, gross earnings rose 11% and the income tax corresponding to these earnings rose 41%.

The government has decided to further lighten the burden of social security contributions on both employers and employees by 1 percentage point of salaries, but has not yet decided exactly how.

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.

A total of €54,700.00 will be paid to 48,850 beneficiaries, from July 8 to 12, 2024, under the scheduled payments of the e-EFKA and the Public Employment Service (DYPA).

Specifically, as the Ministry of Labor and Social Security said in a statement:

Forecasts say that in 2050, Greeks over 65 years of age will make up about 40% of the population. This demographic requires a complete redesign of the health and social security system.

The Greek state will not just need more resources; a timely reorientation of the services provided is also required, before the stability of the already overburdened system begins to be tested.