Salaried labor still expensive
Private sector workers on the minimum salary of 713 euros per month still pay at least €70 more for social security contributions compared to the vast majority of freelancers and self-employed who have chosen the first social insurance category of €220. This illustrates that salaried labor in Greece remains very expensive, despite the latest reductions in non-wage costs.
Even if the minimum wage increases within 2023 – based on the prescribed procedure – to reach, for example, €750, the contributions paid to the Single Social Security Entity (EFKA) will be higher even than the contributions paid by a self-employed person today who has chosen the third insurance category.
After all, this is one of the Finance Ministry’s arguments for implementing the 2020 law known as the Vroutsis insurance law, which defines the increase in contributions for the 1.2 million non-salary workers from January 1 by the amount of inflation in 2022. This will amount to an increase of between 7% and 9% in the six insurance categories that apply to all freelancers and self-employed, but also to the corresponding categories that apply to farmers.
The final rate will be set early in the new year, when the official level of inflation for 2022 will have been determined.
