Pension reform-related decisions spell increased contributions for several castes of professionals

12 January 2017
113 Views

Increases in social security contributions for several categories of employed people have been unveiled and described in two ministerial decisions published this week in the government gazette.

The increases, on top of various tax hikes, affect self-employed professionals, merchants, craftsmen and farmers that were beneficiaries — and mostly obligatory contributors — to the OAEE, ETAA and OGA pension funds, all three of whom were recently absorbed by a new unified pension fund in the country, known as “EFKA” in its Greek-language acronym.

According to analysts, the highest increase will mean up to a tripling of monthly contributions in certain cases, whereas individuals showing less than 16,000 euros in annual income during 2015 are expected to benefit from the changes.

Based on the new social security law that was drafted by the Tsipras government and ratified last year in Parliament, self-employed professionals lumped into the previous OAEE fund will be called on to pay contributions of 26.95 percent (20 percent for their primary {future} pension, and 6.95 percent for health care) of their net income.

The rate reaches 34.5 percent for beneficiaries of the one-time ETAA fund for self-employed professionals; 21.2 percent for professional farmers.

You may be interested

A Greek & a Cypriot on POLITICO’s list of the 28 most influential EU personalities for 2018
FINANCE
shares53 views
FINANCE
shares53 views

A Greek & a Cypriot on POLITICO’s list of the 28 most influential EU personalities for 2018

makis - Dec 15, 2017

One of the two names is more than well-known both in Greece and around Europe as it belongs to the…

Tito’s granddaughter sides with Greece against FYROM
POLITICS
shares123 views
POLITICS
shares123 views

Tito’s granddaughter sides with Greece against FYROM

makis - Dec 15, 2017

“Although my grandfather, Josip Broz Tito, ‘gave’ the name ‘Macedonia’ to one of the six constituent republics of Yugoslavia, it…

Education Minister Gavroglou opens a window for election of the Islamic mufti in Komotini
GREECE
shares63 views
GREECE
shares63 views

Education Minister Gavroglou opens a window for election of the Islamic mufti in Komotini

makis - Dec 15, 2017

A few days after the visit of Turkish President Recep Tayyip Erdogan to Greece, the Minister of Education, Kostas Gavroglou…

Leave a Comment

Your email address will not be published.