Working pensioners: how to declare their income. detailed instructions

From next week, around 100,000 pensioners who are still working will have to file a declaration with the ΕΦΚΑ to avoid checks and the return of their annual pension if they work illegally.

The declaration will be submitted electronically on a special platform, which will be launched next week. Pensioners will have to provide their personal details, number AMKA and VAT number so that ΕΦΚΑ can cross-check with the tax office and system”ΕΡΓΑΝΗ” to confirm the type of employment (hired work, self-employment, freelancing), the amount of remuneration and the tax that must be collected in favor of ΕΦΚΑ.

One payment

Deductions related to work in January will be taken in one payment when retirees file their returns. Law 5078/2023 abolished the 30% reduction in pensions due to working pensioners and introduced a deduction in favor of ΕΦΚΑ at a lower rate as of January 1, 2024.

Retired employees will receive a 10 percent deduction from their remuneration. If they are individual entrepreneurs with basic and additional insurance, then they will pay monthly contributions (basic and additional) to ΕΦΚΑ with a 40 percent premium, and if they work in a free profession, they will pay the basic insurance premium with a 50 percent premium.

For self-employed pensioners and freelancers, proceeds from additional contributions will be collected through the monthly notification ΕΦΚΑ. For salaried employees, the 10% deduction to ΕΦΚΑ will be made through APAs filed by employers each month for employees they employ.

According to estimates by the Ministry of Labor and Social Security, there are more than 100,000 pensioners in the country employed in all types of work (casual, permanent, seasonal), but only about 40,000 of them are registered with ΕΦΚΑ.

The biggest deterrent to declaring employment was the fear of a 30% pension cut. It is expected that after this penalty is lifted, the number of pensioners declaring their employment will increase, but they will pay an amount that, compared to the reduction in pension, will be minimal.

The incentive for declaring employment is both the fact that if undeclared work is discovered, the pensioner will face a fine of twelve pensions, and the fact that by declaring work and taking out insurance, he will receive an increase in pension based on his salary and contributions.

Saving 10%

The suspension of pension payments, which was previously in force for pensioners who got a job in government agencies and were under 62 years of age, remains. Upon reaching 62 years of age, the pension is restored, and the pensioner retains 10% of his salary. The deferment age limit may also be increased.

In accordance with the new regime, disability pensioners will also be able to work, free of additional deductions. Exempt from the deduction are retired farmers of the Regional State Administration who continue to engage in agriculture, pensioners of other funds engaged in agriculture, from which they receive an annual income of up to 10,000 euros, large families and pensioners of special categories (literary figures, etc.).

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