By Dimitris Katsaganis
A new double reduction of employers ‘and employees’ contributions within the current year is in the works, the first reduction is already voted, it will take place from June 1, 2022 and concerns the contributions in favor of the supplementary insurance.
Specifically, the contributions for the auxiliary (both the “old” in e-EFKA and the “new” in the Auxiliary Capital Insurance Fund) will be reduced from 6.5% to 6%. The contributions of the insured will fall from 3.25% to 3% and the same will happen exactly for the contributions of the employers. Auxiliary contributions for compulsory self-employed professionals will also be reduced (by 7%). Thus the contributions of the employees will fall from 36.6% to 36.1%.
For example, the contributions of the 1st insurance category will fall from 42 euros / month to 39 euros / month.
The second reduction is not voted, but its percentage will be 0.6%. It is recalled that the government is committed to reducing contributions by 5 points, in the period 2020-23. Following the impending reduction of contributions for the supplement, the reduction that has taken place will have risen to 4.4% (0.9% from 1 June 2020, 3% from 1 January 2021 and 0.5% in June 2022). Therefore, after next June, there will be another 0.6 points left in order to implement the commitment to reduce 5 points.
Executives of the funds with knowledge of the ongoing processes in the financial staff report to Capital.gr that the timing of the implementation of the subsequent reduction (0.6%) depends on political developments, in addition to the strength of the state budget. In this case, the employees’ contributions will fall from 36.1% to 35.5%.
According to a scenario that is on the table of the government, the reduction could come from September 1, 2022, while according to a second from January 1, 2023.
In fact, circles of employers’ organizations reported to Capital.gr that the subsequent reduction could be more than 0.6%, something that would help companies cope with the increase in the minimum wage, which has been announced by Prime Minister Kyriakos Mitsotakis for the 1st of May 2022.
Most employers’ organizations, according to the memoranda they have sent to KEPEare in favor of an increase of around 4%.
Source: Capital
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