Government considers increasing employer pension contributions
The government is considering the possibility of increasing employer pension contributions, in an effort to avoid carrying out any cuts on pensions under 1,000 euros.
With the Ministry of Labor running out of options, it is reconsidering a series of proposals which have previously been rejected by the country’s creditors, such as increasing employer contributions.
According to reports, the government is specifically examining the possibility of increasing the employer contributions to match contributions made in 2012, at which point they were reduced by 1.1%. In 2014 the government further reduced employer contributions by 2.9% and employee contributions by 1.1%.
Due to the reduction of contributions, the country’s largest social insurance fund IKA saw its revenue drop by 1 billion euros on a annual basis, which exacerbated existing deficits.
You may be interested
Moneyweek: Why we need another Greek crisisPanos - May 29, 2017
Everyone knows the drill for Greek bailout talks by now. There is a lot of posturing on both sides. The…
President Pavlopoulos: Former PM Konstatninos Mitsotakis a great statesmanPanos - May 29, 2017
The President of the Hellenic Republic, Prokopis Pavlopoulos released a statement on the death of former Greek PM Konstantinos Mitsotakis,…