Greek Government Proposes Reduction in Social Security Contributions Amid Economic Challenges

The Greek Ministry of Labor and Social Affairs has submitted legislative provisions to Parliament aimed astatine reducing societal information contributions successful circumstantial cases, extending security sum for susceptible groups and addressing overdue debts for definite categories of workers.

The measures, designed to alleviate fiscal pressures connected some employees and employers, are portion of the government’s strategy to boost employment, heighten competitiveness and enactment those affected by caller earthy disasters.

Under the projected provisions, societal information contributions for overtime, nighttime enactment and enactment connected Sundays oregon nationalist holidays volition beryllium calculated based connected the modular eight-hour workday rate, alternatively than the accrued complaint typically applied to specified peculiar cases.

While employees’ gross wages volition stay unchanged, the simplification successful contributions is expected to summation their nett income.

Employers, meanwhile, volition payment from little payroll costs, arsenic their contributions volition besides beryllium calculated connected the basal rate.

The authorities argues that this measurement volition incentivize greater compliance with societal information outgo regulations, thereby strengthening the fiscal wellness of security funds.

The authorities besides includes an hold of exceptional security sum for susceptible societal groups, specified arsenic those impacted by earthy disasters, done 2025-2026.

Additionally, self-employed individuals and farmers who person pensions and person outstanding 2024 contributions to e-EFKA (Unified Social Security Fund) volition beryllium allowed to settee their debts successful installments implicit 24 months, alternatively than successful a lump sum, to debar excessive fiscal strain.

In effect to the wide harm caused by Storm Daniel, the authorities has projected a suspension of societal information contributions for individuals and entities affected by the utmost upwind event.

Payments for existent and overdue contributions volition beryllium deferred until July 30, 2025, with nary further penalties oregon involvement applied during this period. This measurement aims to supply contiguous alleviation to those grappling with the economical fallout of the disaster.

The projected reforms physique connected a bid of interventions by the authorities successful caller years, which person reduced non-wage labour costs by 5.4 percent points. According to a connection from the Ministry of Labor, these efforts are intended to fortify workers’ incomes, summation employment rates and amended the competitiveness of Greek businesses.

The provisions person been submitted to Parliament for approval, with lawmakers expected to statement the measures successful the coming weeks.

If passed, the reforms could supply important alleviation to workers, employers and susceptible populations, portion addressing long-standing challenges successful Greece’s societal information syste