ECONOMY

Social security being simplified for self-employed

social-security-being-simplified-for-self-employed

More than a million freelancers and self-employed professionals stand to benefit from a new plan, unveiled at the weekend by Labor Minister Yiannis Vroutsis, which simplifies the way social security contributions are calculated.

Speaking to Kathimerini, Vroutsis said that the plan will boost confidence in the social security system and ensure that it pays off in a more substantial way.

“By actively supporting the public social security system, we aspire for it to become more robust and attractive by simplifying the process of calculating contributions of 1.44 million self-employed professionals, boosting the system’s payoff, increasing the confidence of those insured and cultivating a mentality of compliance,” he said.

Under the new scheme, freelancers and self-employed professionals will be able to choose from six different types of pension and health plan.

As of 2020, the lowest monthly contribution will begin at 210 euros and the highest will be at 566 euros, while all new professionals will enjoy favorable terms in the first five years of service, with a contribution of 126 euros.

Vroutsis explained that professionals will be able to choose the level of contributions they want to make at the start of each year and change it if they wish, as the system will allow freedom of choice.

Moreover, he explained that people on payroll who also moonlight as wage earners and freelancers would have parallel insurance as they do now but will receive a higher pension.

“It should go without saying,” Vroutsis told Skai TV on Saturday, commenting on the measure. “We are entering a new environment of reciprocity. Those contributing to the piggy bank of the country’s public insurance system, will be rewarded and much more so at the end of their working life.”

The plan is expected to be submitted to Parliament by the end of the year, along with other provisions of the new insurance reform, most likely shortly after the new tax bill.

The government says that both the social security and the tax reform will work in favor of the overwhelming majority of freelancers and self-employed workers.