It takes 10 work­ers to pay 1 pen­sion

Kathimerini English - - Focus -

The con­stant de­cline in salaries and the rise of flex­i­ble forms of em­ploy­ment are un­der­min­ing the sus­tain­abil­ity of the coun­try’s so­cial se­cu­rity sys­tem de­spite the nu­mer­ous in­ter­ven­tions in terms of pen­sions.

Ac­cord­ing to so­cial se­cu­rity ex­perts, the slide in the av­er­age salary means that it now takes the con­tri­bu­tions of 10 work­ers to pay one pen­sion; be­fore the cri­sis it re­quired the con­tri­bu­tions of four work­ers.

The de­te­ri­o­ra­tion of that ra­tio high­lights the sys­tem’s vi­a­bil­ity prob­lem. The main fea­ture of that prob­lem is that the con­tri­bu­tions of to­day’s work­ers go in their en­tirety to­ward cov­er­ing the pen­sions of to­day’s pen­sion­ers.

Ac­cord­ing to data from the new Sin­gle So­cial Se­cu­rity En­tity (EFKA), the anal­y­sis of em­ploy­ers’ dec­la­ra­tions from May 2016 showed that the av­er­age salary of 1.4 mil­lion work­ers with full em­ploy­ment amounted to 1,176 eu­ros per month. The av­er­age monthly gross earn­ings of the 588,000 part-time work­ers amounted to just 394 eu­ros; their num­ber in­creased by about 11 per­cent from a year ear­lier.

The same data show that big­ger en­ter­prises pay higher salaries: Busi­nesses with fewer than 10 em­ploy­ees have an av­er­age full-em­ploy­ment salary that amounts to just 58.9 per­cent of that paid to em­ploy­ees of com­pa­nies with more than 10 work­ers.

Data show the monthly salary of 1.4 mil­lion full-time work­ers av­er­aged at 1,176 eu­ros last May.

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