Cutting excessive social security contributions

The government is planning to lower the amount of the maximum insurable earnings for calculating the monthly insurance contribution of employees and employers, which currently stands at 6,500 euros, alongside the reduction of the rates for social security contributions that Prime Minister Kyriakos Mitsotakis referred to on Monday.

Greece currently has one of the highest income ceilings for the imposition of social security contributions, which mostly burdens high-ranking corporate officials. The rate increased during the years of the Greek bailouts from the pre-crisis ceiling of €2,432/month.

Sources say the government wants to cut the existing limit down to half, although the final decision will depend on the fiscal margin, which is currently smaller due to the health crisis. The amount of the maximum insurable earnings (that the law sets at 10 times the basic salary...

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