The Increase of Working Pensioners in Greece
Recent data from the Single Social Security Entity (EFKA) in Greece has shown a significant increase in the number of pensioners who have chosen to continue working. This increase is largely attributed to new and more favorable tax provisions that have been put in place.
According to figures from the e-EFKA platform, as of last Thursday, a total of 182,700 pensioners have registered to continue working. This is a fivefold increase compared to the previous system, which withheld 30% of pension checks for those who continued to work.
The change in taxation was introduced by law 5078/2023, which came into effect on January 1, 2023. Under this new law, pensioners who wish to continue working while receiving a pension will have a monthly withholding fee that will be paid into EFKA.
Prior to this new law, pensioners were subject to different regulations, such as the Vroutsis law and the Katrougalos law, which withheld a higher percentage of pension checks for those who continued to work. The more favorable tax provisions under the current law have encouraged more pensioners to remain in the workforce.
Changes in Pension Payments for Freelancers and Contract Workers
Freelancers and contract workers in Greece will now have a portion of their pension withheld and paid into EFKA. This new regulation requires a withholding of 50% of the insurance coverage level chosen by the individuals.
Benefits for Pensioners
According to e-EFKA, this change will benefit pensioners by allowing them to increase their current income and potentially boost their future pension payments. When pensioners decide to retire completely from work, they will have the opportunity to apply for a higher pension amount.
Combatting Undeclared Work
The introduction of this measure is also aimed at combating undeclared work by pensioners. By ensuring that freelancers and contract workers contribute to their pension funds, the government hopes to promote transparency and fairness in the labor market.
