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Migrants help drive national insurance

Immigrants in Greece who are registered for social security contribute considerably to the system without drawing heavily on its resources, according to research presented yesterday.

Six studies conducted by the National Center for Research (EKKE) on behalf of the Immigration Policy Institute (IPI) found that more than 400,000 migrants, mostly from Albania, are registered with the three biggest national insurance organizations — the Social Security Foundation (IKA), the fund for the self-employed (TEVE) and the Farmer’ Pension Fund (OGA) — out of some 700,000 legally living in Greece.

As most of those registered are relatively young, they are not a burden on the system. And EKKE noted that “although immigrants earn less than Greeks, they contribute more to the national insurance system.”

There were 346,070 migrants registered with IKA in 2003, contributing 887 million euros out of some 8 billion gathered by the fund. Of those who are registered, just under half were involved in the construction industry.

Immigrants appear to work fewer days than Greeks but researchers put this down to the fact that they are more likely to work off the clock so they can earn cash that will not be taxed.

Some 40 percent of migrants living in Greece for more than five years have a lower standard of education than Greeks, which often leads to them holding lower-paid jobs. IPI head Alexandros Zavos argued that this meant most migrants would also earn small pensions in the future, which, he warned, could lead to social friction.

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