BUSINESS

EFKA takings on the brink of crumbling

ROULA SALOUROU

Labor Minister Efi Achtsioglou

TAGS: Finance

In view of the clear and present danger that the revenues of the new Single Social Security Entity (EFKA) will crumble due to the excessive contribution-and-tax burden on hundreds of thousands of self-employed professionals and farmers, the Labor Ministry is seeking a lifeline in the revenues of the former Social Security Foundation (IKA) and the Social Security Debt Collection Center (KEAO).

The ministry is pinning its hopes on estimates for takings of more than 1 billion euros from the social security funds’ expired debts, increased contributions from salaried employment and the return to the system of some 350,000 self-employed professionals who up until today have not been paying their contributions because they didn’t have the money to do so. It is in this context that the government has provided the option of partial payment of contributions and has said it will only impose fines on outstanding debts.

Out of the 1.37-billion-euro increase in social security contributions included in the state budget for 2017, the lion’s share is seen coming from the contributions of civil servants that will now be paid into EFKA.

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