ECONOMY

Social security debt keeps piling up

social-security-debt-keeps-piling-up

Arrears in social security contributions reached over 38 billion euros at the end of June, authorities say, forcing the government to cut its estimate for such contributions by €1.2 billion, officials say, attributing a large part of the arrears to the effect of the coronavirus pandemic.

Efforts are being made to raise revenue through the facility for individuals and companies to settle their social security debts in 72 monthly installments. But even the revenue estimates for that program during 2021 have dropped to 768 million euros from an original target of €1.19 billion.

Total social security debt rose by €251.39 million in the second quarter of 2021. Also, more than 75% of the debt, or €28.56 billion concerns arrears from before 2010.

A total of 484,531 individuals and companies have settled on a payment schedule for a total of just over €4.2 billion, which raises the question of even if those settlements are all adhered to, how much of the rest will the Social Security Authority (EFKA) will be able to recover?