Choosing the lowest insurance category limits the amount of future pension benefits, and only 7 in every 100 self-employed workers are expected to exceed €1,000 per month with 40 years of contributions. This is a difficult equation that hundreds of thousands of freelancers, self-employed workers and farmers must solve every year: on one side sits the need to reduce monthly insurance costs, and on the other, the level of pension they will receive when they retire.
The overwhelming majority of non-salaried insured workers choose the first — that is, the lowest — insurance category offered by EFKA (Greece’s Unified Social Security Entity). This choice provides the smallest possible financial burden today, but simultaneously establishes the lowest insurance base on which the future pension is calculated. Based on current data, nearly eight in ten freelancers and farmers remain in the first insurance category. The result is that even with 40 years of contributions, future pensions for this large group of insured workers are expected to remain at particularly low levels — close to €800 per month for freelancers.
Pensions: Where the problem lies
The problem does not necessarily stem from a lack of awareness about social insurance. For many professionals, choosing the first category is essentially the only viable option, as the operating costs of a small business or sole-trader profession remain high. The ability to select an insurance category allows non-salaried workers to reduce their non-wage costs and retain more disposable income to cover their current financial obligations.
The price to pay
The price, however, is paid in the future. For 2026, out of approximately 1,600,000 insured professionals and farmers, only 400,000 chose an insurance category higher than the first. The majority opted to remain in the lowest category. This choice can prove decisive for the level of pension received, as years of contributions and the insurance base are critical factors in calculating the earnings-related pension.
The insurance categories
The picture becomes even clearer when the different insurance categories are compared. A freelancer who remains in the first category throughout their entire insured working life and completes 40 years of contributions is estimated to receive a pension of around €800 per month. By contrast, with the same number of contribution years but by choosing the highest — sixth — insurance category, the pension can reach approximately €1,800 gross. The gap is significant and highlights the true cost of today’s choices.
The low contribution
A low contribution ensures a smaller financial burden during working life, but leads to a lower insurance base and, consequently, a lower earnings-related pension. Based on relevant estimates, only about seven in every 100 freelancers could receive a pension exceeding €1,000 per month, provided they have completed 40 years of contributions. For the majority, the future pension will remain below this threshold.
What applies to farmers
The situation is even more stark for farmers. Choosing the first insurance category leads — based on the same assumptions — to a pension of around €250 per month, while choosing the sixth and highest category can raise the pension to approximately €670 gross.
The big difference
The large gap between these two figures illustrates in the most striking way the dilemma facing insured workers: higher contributions today for a higher pension tomorrow, or a lower burden today with a significantly lower pension in the future. For a professional with a limited or unstable income, the decision is far from easy. Choosing a higher category may improve future retirement income, but it immediately increases the cost of insurance.
The problem of low pensions does not stop at the initial amount. Another concerning factor is the rate of annual increases. When a pension starts from a low base, even an increase of 2% or 3% translates into a very small real rise in euros. By contrast, the same percentage increase applied to a pension above €1,000 yields a larger absolute amount. This creates a vicious cycle: insured workers who start from a low base receive small increases in absolute terms and struggle to keep up with the rising cost of living. The risk is that today’s low pensions will remain for many years at levels that do not allow for a dignified standard of living.
Of particular significance is the fact that pensions around €800 fall below the current minimum wage of €920. This gap becomes even more meaningful when household needs, housing costs, healthcare expenses and the general cost of living are factored in. Faced with this situation, the primary recommendation from experts to freelancers is not to remain in the first insurance category throughout their entire working life.
The more balanced choice
The third and fourth insurance categories are often cited as the more balanced options. The reasoning is that higher contributions should not be viewed purely as a cost, but also as an investment in future retirement income. Of course, the choice must take into account income level, genuine financial capacity and the number of years remaining until retirement. For a young professional, gradually moving to a higher category can have a different impact than it would for someone approaching retirement age. From 1 January 2026, insurance contributions for non-salaried workers increased by 2.5%. This adjustment was linked to the average annual inflation rate for 2025, while from 2027 the wage change index is expected to apply.
This marks the fourth consecutive annual increase. In 2023, contributions rose by 9.6%, in 2024 by 3.46%, and in 2025 by 2.7%. In total, over the four-year period from 2023 to 2026, the cumulative increase amounts to approximately 18.26%. With the 2.5% rise applied, the first insurance category contribution for main pension and healthcare is set at €250.77 per month. For insured workers who are also enrolled in supplementary insurance and lump-sum benefit schemes, an additional €46.57 is added for supplementary insurance and €31.05 for the lump-sum benefit.
The total monthly contribution burden
As a result, the total monthly contribution burden reaches €328.39. The first category remains the most affordable option for those struggling to meet their current obligations. At the same time, however, it creates a low insurance base that can lead to a correspondingly low pension. For the hundreds of thousands of freelancers and farmers remaining in the lowest category, the dilemma is now clear: lower contributions today or higher income tomorrow. This choice carries even greater weight in a period when the rising cost of living, an ageing population and increasing healthcare needs make the adequacy of retirement income a critical issue.
Originally published in Apogevmatini
