The Greek Ministry of Labor and Social Affairs has submitted legislative provisions to Parliament aimed at reducing social security contributions in specific cases, extending insurance coverage for vulnerable groups and addressing overdue debts for certain categories of workers.
The measures, designed to alleviate financial pressures on both employees and employers, are part of the government’s strategy to boost employment, enhance competitiveness and support those affected by recent natural disasters.
Under the proposed provisions, social security contributions for overtime, night work and work on Sundays or public holidays will be calculated based on the standard eight-hour workday rate, rather than the increased rate typically applied to such special cases.
While employees’ gross wages will remain unchanged, the reduction in contributions is expected to increase their net income.
Employers, meanwhile, will benefit from lower payroll costs, as their contributions will also be calculated on the base rate.
The government argues that this measure will incentivize greater compliance with social security payment regulations, thereby strengthening the financial health of insurance funds.
The legislation also includes an extension of exceptional insurance coverage for vulnerable social groups, such as those impacted by natural disasters, through 2025-2026.
Additionally, self-employed individuals and farmers who receive pensions and have outstanding 2024 contributions to e-EFKA (Unified Social Security Fund) will be allowed to settle their debts in installments over 24 months, rather than in a lump sum, to avoid excessive financial strain.
In response to the widespread damage caused by Storm Daniel, the government has proposed a suspension of social security contributions for individuals and entities affected by the extreme weather event.
Payments for current and overdue contributions will be deferred until July 30, 2025, with no additional penalties or interest applied during this period. This measure aims to provide immediate relief to those grappling with the economic fallout of the disaster.
The proposed reforms build on a series of interventions by the government in recent years, which have reduced non-wage labor costs by 5.4 percentage points. According to a statement from the Ministry of Labor, these efforts are intended to strengthen workers’ incomes, increase employment rates and improve the competitiveness of Greek businesses.
The provisions have been submitted to Parliament for approval, with lawmakers expected to debate the measures in the coming weeks.
If passed, the reforms could provide significant relief to workers, employers and vulnerable populations, while addressing long-standing challenges in Greece’s social security syste