More changes to social security system ahead

More changes to social security system ahead

The government in bracing for the second round of reforms to the social security system and labor laws ahead of the second bailout review starting in September, wary of the reactions they may generate.

The new changes to the pension system stemming from the compliance report of the European Commission and the amendments to the bailout agreement, will mean that about 1.5 million workers face the prospect of another increase to their social security contributions and to the retirement age.

In September the government will need to fulfill three actions related to the single system of contributions so as to complete its commitments in the bailout agreement. For example, the government will have to abolish the lower contributions paid by owners of tourism accommodation in areas with fewer than 2,000 residents, a move that will affect more than 50,000 professionals.

Another change regards the abolition of all exceptions allowing the payment of lower contributions for healthcare, and a third concerns the higher cost of the buyout of some workable years for the completion of 40 years of service at the age of 62, which will affect over half a million workers.

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