ECONOMY

Auxiliary social security contributions to go down

auxiliary-social-security-contributions-to-go-down

Workers and their employers will see their auxiliary social security contributions drop from 7 percent to 6.5 percent from June this year and up to May 31, 2022.

In practical terms, this constitutes a gradual return of contributions paid by employers and employees to pre-2016 levels.

According to the measure, contributions to the Single Auxiliary Social Security and Lump Sum Handouts Fund (ETEAEP) – which since June 2016 stand at 3.5 percent by employers and 3.5 percent by employees – will as of June this year go down to 3.25 percent for each side, effective until end-May 2022.

The aim is for the percentage of contributions to drop further to 3 percent for both sides from June 2022. The reduced 6.5 percent auxiliary social security contributions will not only concern salaried workers but also self-employed and freelance professionals, regardless of whether they joined one of the auxiliary funds before or after January 1993.