Em­ployer con­tri­bu­tions back on ta­ble

Kathimerini English - - Front Page - ROULA SALOUROU

The La­bor Min­istry is seek­ing ways to re­duce the cuts it is set to im­pose on pen­sions, con­sid­er­ing the op­tions of in­creas­ing em­ployer so­cial se­cu­rity con­tri­bu­tions, us­ing a part of the gen­eral taxes to fi­nance the deficits of the pen­sion funds, and trans­fer­ing rev­enues from pri­va­ti­za­tions to the so­cial se­cu­rity sys­tem.

As it starts to ap­pear that even pen­sions be­low 1,000 eu­ros won’t be safe from the cuts, the min­istry is re­viv­ing pro­pos­als that had pre­vi­ously been re­jected by the rep­re­sen­ta­tives of the coun­try’s cred­i­tors, such as the in­crease in em­ploy­ers’ so­cial se­cu­rity con­tri­bu­tions.

Well-in­formed sources say that the gov­ern­ment has brought the par­tial or full re­turn of em­ploy­ers’ con­tri­bu­tions to the level of 2012, when the first re­duc­tion of 1.1 per­cent­age points ap­plied, back to the ne­go­ti­at­ing ta­ble. A fur­ther cut of 3.9 per­cent­age points fol­lowed in 2014. Th­ese re­duc­tions led to a 1bil­lion-euro drop in So­cial Se­cu­rity Foundation (IKA) rev­enues.

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