BUSINESS

Workers face 4 percent contributions for ETEAP

TAGS: Economy

Salaried workers and self-employed Greeks who started working from January 1993 onward now have to pay a 4 percent contribution from their income toward the Unified Supplementary Insurance and One-Off Benefits Fund (ETEAP), according to a circular issued on Tuesday by Deputy Labor Minister Tasos Petropoulos.

This means that around 250,000 Greeks who were first employed before January 1993 and now pay lower contributions, including hotel and municipal workers, will not see these amounts rise.

For wage earners insured after January 1993, the 4 percent is calculated based on the portion of their income that is subject to social security contributions. For the self-employed, the 4 percent applies to their entire income.

The 4 percent contribution applies retroactively from January 1 this year, which means that the appropriate deductions will be made by authorities from the incomes of salaried workers and the self-employed.

ETEAP was created to replace the Unified Supplementary Insurance Fund (ETEA) as part of social security reforms passed last year that aim to streamline the system.

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