Nearly one and a half million Greek self-employed professionals, tradespeople, and farmers will be called to pay more for their social security funds. The levy rise was included in last month’s agreement between the Greek government and the country’s creditors, as part of the ‘prior actions’.
This consists of an increase in the lowest level used to calculate obligatory social security contributions. Specifically it signifies a change in the way contributions by self-employed professionals and tradespeople are calculated, with the change translating into higher monthly obligatory payments to relevant pension funds. Similarly, an increase in the factor used to calculate professional farmers’ social security contributions, will see them rise from the current 14 per cent to 17 per cent.
The proposed change, to come to effect from 2018, will be based on taxable income and on contributions paid during the previous year, putting more financial pressure to a professional class that is already in extreme financial stress.
In an attempt to disperse concerns, Minister of Labour Efi Achtsioglou pledged that the government will implement a 15 per cent concession in social security contributions, in order for the final sum required to remain at the same level it is today.