The new system will lead to higher pensions and to higher contributions from January next year. [AMNA]
The new wage growth index will bring about increases of close to 4% to 5% in the social security contributions of the approximately 1.8 million unemployed, freelancers, self-employed and farmers who are insured in the Single Social Security Entity (EFKA).
This is the index compiled by the Hellenic Statistical Authority in collaboration with the Ministry of Labor, in order to calculate in 2026 the increases in contributions of freelancers and the pensionable earnings for those who are about to retire.
The new system was to be implemented this year, but was postponed as the request of the representatives of the insured was accepted, to create an index exclusively for the private sector, without including the earnings of public employees in the calculation of the wage growth, so that it would be more representative.
As experts point out, it will lead, in the future, to higher pensions and immediately, from the beginning of next year, to higher contributions.
That is because until now the adjustment of contributions was based on the evolution of inflation. Data from the ministry’s Ergani database, and Bank of Greece estimates, show a wage increase between 5.5% to 6% for 2025, while inflation is estimated to end the year just over 3%.