New social security law provides a 60% burden on self-employed income

The Greek government examines the insurance and tax burden of self-employed to achieve a threshold without overturning the actuarial balance of the new insurance law.

According to information, the contributions for self-employed rise to a 50% – 60% of declared income causing turmoil among the self-employed who claim this is not a relief measure but a way to ‘exterminate’ self-employed people.

Based on the data presented by self-employed associations, the new contribution rates lead to a higher burden for them reaching 60%.

An experts committee consisted of representatives of the bodies and Ministry of Finance and Labour will examine and discuss on Monday the rationalization of the contribution system so as to reduce the tax burden of the self-employed with annual income above 25,000 euros.

Labour Minister Giorgos Katrougalos admitted, though, that in these classes there is an additional charge for supplementary pensions, i.e. it increased from 27% to 38%.

However, he tried to justify this tax hike saying that it benefits 80-85% of self-employed who declare income below 10,000 euros.

Proto Thema

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