The government plans to reduce the contributions by an additional 2-3 points

It is possible that they will decrease further the insurance contributions for salaried employees in 2023 depending on the fiscal area leave its executives financial staffin order to complete the pre-election commitment of the ND for a cumulative reduction of 5 percentage points.

“It is in our intentions to reduce the insurance contributions”, said Prime Minister Kyriakos Mitsotakis in his interview yesterday, stressing that the costs will be covered by permanent and not temporary sources of funding.

However, her pre-election program ND will include announcements for further reductions in contributions which will be applied if the current government’s term is renewed for a period of 4 years depending on the budget’s capacity and the general economic situation.

According to information, the government’s intention is to contributions to be reduced further by 2-3 percentage points.

As for the reduction of contributions by 0.60 percentage points, a percentage left over from the ND’s pre-election commitment for a cumulative reduction of 5 p.m., sources of the financial staff are not committed to the time of implementation but do not rule out the measure being implemented until the end of the first semester. The annual cost of permanent reduction of of contributions amounts to 900 million euros for EFKAwhich is covered by the budget, while the further reduction by 0.60 pm will cost an additional 150-200 million euros.

We remind you that until now contributions have decreased by 0.9 percentage points in June 2020 (0.42 p.p. for the employee and 0.48 p.p. for the employer) and by 3.0 p.p. him January of 2021 (1.21 p.m. for the employee and 1.79 p.m. for the employer. Also from 1/6/2022 the amount of supplementary insurance contributions from 6.5% to 6%, equally for employers and employees.

According to the Ministry of Labor as a result of these reductions in the so-called “tax wedge”, the disposable income of employees increases and, at the same time, there is a relief in the non-wage costs of businesses. These, in turn, lead to an increase in the competitiveness of businesses and boosting employment.

According to her data Eurostatespecially for low-wage workers, while in 2019 based on the size of the “tax wedge” Greece was in 14th place between EU member states, the 2021 moved up to 5th best position and with today’s reduction further improvement is expected of her ranking.

That is, the percentage of insurance contributions which was 40.56% in July 2019, initially decreased to 39.66% and with the new reduction of insurance contributions from 01.01.2021 dropped to 36.66%. Thus, the business liquidity, as well as the net income of the employees, increased by the corresponding percentage.


On the occasion of the start of the procedure for determining the new minimum wage, the employers bring back their standing request for a further reduction in insurance contributions, stressing that despite the reductionsthe cost to businesses is high.

With today’s minimum wage of 713 euros a single person who is not entitled to an increase due to three years costs the company 1,019 euros, up from 947.8 it used to cost since the last increase. According to the table prepared by ESEE, the gross salary for the person paid with the minimum limits will amount to 831.8 euros, the net to 714.3 (including gifts), while his profit will be 50 euros monthly.

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