Plan to slash 70 pct of social security debts

The new plan for restructuring arrears to social security funds foresees a haircut to the original debt averaging between 50 and 55 percent, and a write-off of late fees by up to 85 percent, sources have told Kathimerini.

With this new plan, the Labor and Social Security Ministry aims to ease the pressure on thousands of professionals and small and medium-sized enterprises unable to enter the out-of-court mechanism for the settlement of arrears to the Single Social Security (EFKA). The ministry has also been in talks with creditors so as to proceed with the activation of the scheme.

Overdue contributions will be calculated on the basis of existing legislation, and the debt that is left over will then be restructured into 36 or even 120 installments.

Labor Minister Effie Achtsioglou has said that the new system for restructuring debts to the social security funds will be introduced in the coming months and lead to an average reduction to the arrears by 70 percent.

The new restructuring plan concerns more than 900,000 professionals. Most are freelancers, as 550,000 of them owe money to the former Fund for Freelance Workers (OAEE). Another 350,000 are farmers and 20,000 are scientists.