BUSINESS

Flexible forms of employment to hurt system

ROULA SALOUROU

TAGS: Finance

The uncontrolled growth of flexible forms of employment in Greece is like a ticking time bomb that could see the country’s social security system deficit shoot sky high, generating additional needs of 65.6 billion euros by the end of 2055.

According to an academic study by Panteion University professor Savas Robolis and Panteion doctoral candidate Vassilis Betsis, the expanded flexibility of employment forms in Greece is a direct threat to the sustainability of social security, as it deprives the funds of cash and undermines future pensions.

The two scientists found that the social security deficit will increase by 0.95 percent of gross domestic product on average each year if flexible employment continues to take up such a large part of the market – by 2055 it is estimated that it will account for 29 percent of all employment.

The total deficit from contribution losses in the period from 2016 to 2055 will amount to 36.9 percent of 2015 GDP, of which 48 billion will concern main pensions and 17.6 percent auxiliary pensions. Robolis and Betsis note that this will lead to pensions being cut by an  additional 33 percent up to 2055.

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