Optimistic employment forecasts due to end of penalty


The government has expectations for the increase in the employment of pensioners due to the announced abolition of the 30% penalty on the pension of working pensioners.

In an interview yesterday, the Minister of Social Insurance, Mr. Panos Tsakloglou, emphasized that “with the Vroutsis Law, the withholding went to 30% and we saw that the number of working pensioners increased more than 5 times. We currently have over 32,000 working pensioners. With the change that is coming, this figure is expected to increase a lot as now pensioners will receive their pension without a cut and a non-remunerative resource of 10% for EFKA is included on income from salaried employment and something similar on income from self-employment”.

“Prior to 2019, the deduction made on the pension of working pensioners was 60% – essentially, a confiscatory percentage. To my surprise, about 6,000 pensioners, probably the number was higher but they were working in undeclared jobs, continued to work.”

According to the government announcements, the “penalty” of 30% in the pension of working pensioners will be abolished (from January 1, 2024, after the relevant provision is passed earlier), while a non-reimbursable resource in favor of EFKA 10% will be imposed on the gross salaries of those who are employees and non-remunerative tax for EFKA at the amount of 50% of the main pension contribution for those who are self-employed, self-employed and farmers.

At the same time, the Minister of Labour, Mr. Adonis Georgiadis has stated that the contributions they will pay for the EFKA as employees (not the fund for the EFKA) will lead to an increase in their pension.

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