BUSINESS

It takes 10 workers in Greece to pay one pension

TAGS: Finance, Economy

The constant decline in salaries and the rise of flexible forms of employment are undermining the sustainability of the country’s social security system despite the numerous interventions in terms of pensions.

According to social security experts, the slide in the average salary means that it now takes the contributions of 10 workers to pay one pension; before the crisis it required the contributions of four workers.

The deterioration of that ratio highlights the system’s viability problem. The main feature of that problem is that the contributions of today’s workers go in their entirety toward covering the pensions of today’s pensioners.

According to data from the new Single Social Security Entity (EFKA), the analysis of employers’ declarations from May 2016 showed that the average salary of 1.4 million workers with full employment amounted to 1,176 euros per month. The average monthly gross earnings of the 588,000 part-time workers amounted to just 394 euros; their number increased by about 11 percent from a year earlier.

The same data show that bigger enterprises pay higher salaries: Businesses with fewer than 10 employees have an average full-employment salary that amounts to just 58.9 percent of that paid to employees of companies with more than 10 workers.

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