The low level of social security contributions that hundreds of thousands of self-employed and salary workers choose constitutes a time bomb for their future income.
An overwhelming majority of workers choose systematically to pay the least possible for their social security while they work, although in this way they cut their future pension. Others, compromise by receiving a portion of their real salary “under the table” in order to help their employer pay fewer contributions, in exchange for higher net earnings.
The official figures of the Single Social Security Entity (EFKA) show that eight out of 10 insured workers choose the lowest possible contribution category.
The consequences are reflected in the amount of the pension: An individual who insists on the minimum contribution provided for by law for the self-employed cannot look forward to a monthly pension of 1,000 euros gross or over, no matter how many years he will be insured for.
For example, 30 years of insurance, at current figures, will earn workers a pension of €623 per month, while one needs to go up to 40 years to get a pension of €837, always gross.