The contributions conundrum
Labor Ministry to decide on increase based on inflation and abolition of unemployment levy
The increase of social security contributions from freelance professionals, the self-employed and farmers at the rate of inflation, i.e. 9.9%, with a possible cut of the charge by 10 euros corresponding to the monthly contribution against unemployment, is the baseline scenario the leadership of the Ministry of Labor and the main pension fund’s administration are considering for the contributions of 1.2 million non-salary workers.
The decision has not yet been made, leaving policyholders until the end of January to make a difficult choice, without even having the full set of the necessary data at hand.
The Single Social Security Entity (EFKA) social security category selection platform has opened, the law stipulates that for 2023 the contributions must increase based on inflation, i.e. close to 9.9%, and the leadership of the ministry seems determined not to succumb to pressure from various sides for the non-implementation of the relevant provision, but the final decision has not been taken yet – as scenarios for abolishing the €10 unemployment contribution are being considered.
The final decision is estimated to be made within the next few days, as already insured workers are asked to choose a category by the end of the month, since the January contributions must be paid by the end of February.
Already, EFKA has launched a special electronic platform (www.efka.gov.gr/el/asphalismenoi/me-misthotoi/epilogi-asfalistikis-katigorias) through which insured freelancers, self-employed and farmers can freely choose the social security category under which they want to be classified for 2023.
The choice of the contributions category is declared for the main and auxiliary insurance and one-off benefit branches in a single application and is valid for the whole year. Social security experts are sounding the alarm, however, pointing out that ultimately, the choice of insurance category will largely determine the amount of the final pension.
