Flex­i­ble forms of em­ploy­ment to hurt sys­tem

Kathimerini English - - Focus - ROULA SALOUROU

The un­con­trolled growth of flex­i­ble forms of em­ploy­ment in Greece is like a tick­ing time bomb that could see the coun­try’s so­cial se­cu­rity sys­tem deficit shoot sky high, gen­er­at­ing ad­di­tional needs of 65.6 bil­lion eu­ros by the end of 2055.

Ac­cord­ing to an aca­demic study by Pan­teion Univer­sity pro­fes­sor Savas Robo­lis and Pan­teion doc­toral can­di­date Vas­silis Bet­sis, the ex­panded flex­i­bil­ity of em­ploy­ment forms in Greece is a di­rect threat to the sus­tain­abil­ity of so­cial se­cu­rity, as it de­prives the funds of cash and un­der­mines fu­ture pen­sions.

Grow­ing deficit

The two sci­en­tists found that the so­cial se­cu­rity deficit will in­crease by 0.95 per­cent of gross do­mes­tic prod­uct on av­er­age each year if flex­i­ble em­ploy­ment con­tin­ues to take up such a large part of the mar­ket – by 2055 it is es­ti­mated that it will ac­count for 29 per­cent of all em­ploy­ment.

Lower pen­sions

The to­tal deficit from con­tri­bu­tion losses in the pe­riod from 2016 to 2055 will amount to 36.9 per­cent of 2015 GDP, of which 48 bil­lion will con­cern main pen­sions and 17.6 per­cent aux­il­iary pen­sions. Robo­lis and Bet­sis note that this will lead to pen­sions be­ing cut by an ad­di­tional 33 per­cent up to 2055.

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