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Final approval is expected in the coming days. a new way of calculating social security contributions for approximately 800,000 self-employed people, sole proprietors and farmers.
Currently, contributions for the first insurance category for the self-employed amount to 238.22 euros per month, which is 3.46% more than in 2023 and corresponds to the average inflation rate of the previous year. With the introduction of the new system, contributions will be better linked to the real dynamics of wages, which will allow them to be adapted to the conditions of the private economy.
From 2025, non-work-related contributions will be decoupled from inflation and linked to the rate of wage indexation, ensuring a fair increase that reflects wage dynamics in the real sector of the economy.
To this end, the Ministry of Labor and Social Affairs has asked the Hellenic Statistical Authority to create a new wage index for the private sector only. This index is considered more representative of the unemployed, as public sector wages often do not reflect real economic conditions.
The working group created to develop the index is expected to report to the Labor Department in the coming days whether it will be ready in time for final decisions on non-working contributions and pensionable earnings adjustments. If the index is not ready, contributions and pensionable wages may continue to be calculated based on inflation until 2025.
However, the ministry intends to link contributions to actual private sector wage growth, which will decouple the calculation from inflation. This means contributions could be higher than those calculated based on inflation, which is projected to be 2.9% in 2024.
P.S. Usually such a revision is introduced to the side increase in paymentswhich already make up a significant share of freelancers’ income.
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