From 2025, freelancers' social security payments will directly depend on wage growth. The new system of calculating contributions will replace the current practice of following the consumer price index.
In practice, contributions will increase by the average amount of wage growth over the previous yearFor example: if in 2024 salaries increase by 5%, then in 2025 professional contributions will increase by 5%.
It is assumed that the increase in contributions will be greater if wages increase more than inflation, and increasing contributions will lead to an improvement in pensions. From 2025, there will also be changes to the calculation of funded pensions. Instead of pensionable earnings plus the consumer price index, the new calculation will also be based on the wage change index. This means that The increase in wages will have a positive impact on the level of pensions. The higher the salary growth in 2024, the greater the increase in pensions for pensioners in 2025 and subsequent years. According to experts, the difference will be small in the first few years, but in 5-6 years pensions will increase by 5-10%.
According to the relevant provision of Law 4670/2020, the adjustment of pensionable salaries for the period up to 2024 will be made on the basis of the general consumer price index of the National Statistical Office, and from 2025 onwards on the basis of the wage change index calculated by the National Statistical Office.
The wage change index affects the size of the pension, not the annual increase in the pensionwhich will still be calculated using the same formula, i.e. the growth rate plus inflation, divided by two. The final result depends on the dynamics of wages, which is a function of the growth rate.
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