ECONOMY

Social security contributions won’t change before 2020

social-security-contributions-won-t-change-before-2020

The new system for the calculation of social security contributions for the country’s 1.4 million freelancers, self-employed professionals and farmers will start applying in 2020, so until the end of this year they will need to continue paying their dues to the Single Social Security Entity (EFKA), despite this month’s decision by the Council of State.

The country’s highest administrative court ruled that most of the changes imposed on contributions with legislation introduced in 2016 are unconstitutional, but non-salaried workers must continue to pay their dues as usual, with September’s contributions due by next Thursday.

The Labor Ministry is also working on legislative changes that will lead to the dissociation of social security contributions from declared incomes and create a fairer system, probably through social security brackets.

Minister Yiannis Vroutsis said this week that his ministry will cooperate on that with the Finance Ministry so that the changes to contributions combined with the impact from the tax rate drop to 9 percent benefit workers.