ECONOMY

Social security debt plans back

social-security-debt-plans-back

A Labor Ministry amendment inserted in a Digital Governance bill allows for social security debtors who forfeited on their arrears repayment plans between March 2020 and this month to get back on board without losing the favorable terms they had enjoyed under their original agreements.

Besides the chance for debtors to go back to their payment plans, the amendment allows for the debts accrued by businesses and freelance professionals in the period since the outbreak of the pandemic to be settled in up to 72 monthly tranches.

This new arrangement is open to companies and freelancers whose social security dues have been postponed until after December 31, 2021. It also applies to contributions that should have been paid from March 1, 2020 to July 31, 2021 by businesses and professionals belonging to sectors that will be determined by a separate Finance Ministry decision.

Eligible debtors will be able to have their arrears paid in up to six years with a minimum amount per trance at 50 euros. The programs for repayment in up to three years will be interest-free, while settlements with any more than 36 monthly tranches will incur an interest rate of 2.5%.