BUSINESS

Circular adds to burden on self-employed

ROULA SALOUROU

TAGS: Finance

A circular issued on Friday by the Labor and Social Security Ministry, intended to clarify the social security contributions of self-employed professionals, introduces changes that will likely result in income reduction and even loss of work for some 250,000 people paid through invoices for services rendered (known in Greek as “blokaki”) by up to two employers.

The ministry demands through the circular that employers cover their part of the contribution while asking the employees to report their employers if they fail to fulfill their obligations.

Regarding the 20 percent of revenues to be deducted for social security contributions, the law that the circular clarifies says that 13.33 percent is to be paid by the employer and by 6.67 by the employee. Although several issues remain unclear, it appears that many self-employed insured after 1992 will be hit especially hard, as they are required to pay double contributions, both as salary workers and as self-employed professionals.

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