PENSIONS

Social security contributions to stay reduced

Social security contributions to stay reduced

Non-salary costs will remain 270 million euros lower in 2023, as the social security bill the government tabled in Parliament on Wednesday provides for the maintenance of the three-percentage point contributions rate reduction as originally introduced in 2021.

The Labor Ministry’s draft law also provides for incentives for the support of full-time employment against part-time labor, with a 40% reduction of the social security contribution by both employers and employees.

The same bill further incorporates a series of favorable regulations for hundreds of thousands of people in the social security system, either concerning contributions, such as the abolition of the special levy of 1% for more than 600,000 civil servants, or regarding the debts created due to the failure to pay contributions on time, such as increasing the installments in the standard payment plan of up to 24 payments.

Another regulation included reduces the time that the Single Social Security Entity (EFKA) has at its disposal to confirm and demand unpaid contributions from the current period of 20 years to 10. If EFKA fails to confirm or inform the insured citizen of the debt within a decade, then those dues will be written off, while for debts to be created as of 2026, the write-off time will be five years.

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