A half percentage point will be reduced from 1 April 2027. insurance contributions The Workers in the private sector with the benefit of being credited exclusively to employees by increasing their net monthly income. The reduction in the contributions will be made by the IMIPA reservation arm, while the cost will be covered by the State budget through a permanent increase in the grant to IMIPA.
The net increase for the low-paid person it will be EUR 5 per month while for the employee of EUR 2000 the profit is EUR 10. However, in combination with increase in wages 40 euros from 1 April and 40 euros from January 2028 gives a breath to the low-paid.
For example: For a new 23-year-old without a three-year period, the gross salary will be increased from 920 to 960 euros in April 2027 (decreased by 0.5% insurance contributions) and to 1,000 euros in January 2028. The net salary will rise from 797 to 836 euros in April 2027 and 871 euros in January 2028. Overall, compared to this year he will receive an additional 414 euros in 2027 and 1040 euros net in 2028.
The financial costs, i.e. the money lost by EXPAS, amount to EUR 163 million for 2027 and EUR 218 million for 2028. The beneficial effects of the measure will compensate for the loss of EFFA's revenue on the grounds that the EFFA's revenue this year is increasing due to the increase in minimum and average wages and employment.
According to the EPCA, for each percentage point (1%) of the minimum wage increase, insured earnings increase by approximately EUR 244 million annually. With the increase in the minimum wage of 4.5% in force since 1 April, the revenue of the EPCA will be increased by around EUR 630 million, which fully covers the cost of reducing contributions.
The reduction in non-wage costs It is in response to the firm demands of the employers which they consider to be overly burdened by the tax wedge without their own burden being translated into profit for employees. For example, the current minimum wage of EUR 920 costs the company 1120. 5 euros per month when the low-paid person himself gets net in pocket 771.7 euros after deduction of insurance contributions (123 euros) and the payroll tax (25.3 euros).
After this reduction by 0.5% total insurance contributions to the private sector will have decreased from 40.56% in 2019 to 34.66% in 2027, i.e. 5.9 units. Workers' contributions will have been reduced from 15.75% to 12.87% and the employer from 24.81% to 21.79%.
The successive reductions per year, workers' contribution, employers' contribution and total
2020: 15,33%+15,33%=39,66%
2021: 14,12%+22,54%=36,66%
2022: 13,87%+22,29%=36,16%
2025: 13,37%+21,79%=35,16%
2027: 12,87%+21,79%-34,66%
As regards workers' contributions, Greece has 13.35% in third place in the Eurozone, first Germany (19.9%) and second Belgium (13.7%), when the average in the Eurozone is 11.8%.
At OECD Member State level, Greek employees are in equally high 5th place, with an average employee contributions of 9.5% in OECD member states.
