The Greek Social Security Authority (e-EFKA) has published new guidelines and important clarifications regarding the Analytical Periodic Declaration (APD) for insurance under the Lump-Sum Benefits Branch (Welfare Branch), which affects 150,000–160,000 employees in the public sector and local government. These guidelines establish the framework to be applied retroactively from January 1, 2017, for specific categories of workers in broader public sector bodies. The new guidelines apply to employees with Open-Ended Private Law contracts (IDAX) who serve or are hired in the public sector and public legal entities, and who fall under the provisions of the former Public Employees’ Welfare Fund. They also cover staff at Commercial, Industrial, Professional, and Craft Chambers, as well as transferred employees from the former Local Unions of Municipalities and Communities of Greece (TEDK).
How the calculation works
The official document clarifies the method for calculating insurance contributions, maintaining a different regime for “old” insured individuals (those enrolled before January 1, 1993) and “new” insured individuals. For the former, the special provisions of each previous welfare sector continue to apply, while for the latter, contributions from January 1, 2017 onward are set at 4% of insurable earnings (down from the previous rate of 5.5%), as defined by e-EFKA legislation, up to the applicable maximum insurable earnings ceiling. In practice, between 45,000 and 60,000 employees in these categories will receive refunds for excess insurance contributions paid from January 1, 2017 to the present — estimated at an average of €2,650 per person for the period from early 2017 through the end of June 2026 (based on the average earnings of these categories over that period). Particular emphasis is placed on the accurate reporting of insurance coverage in the APD.
e-EFKA stipulates that the Lump-Sum Benefits Branch must be declared using a separate entry and a specific coding system, distinct from that used for other insurance branches such as main pension, healthcare, and supplementary insurance. For each category of insured individuals, specific Activity Codes (KAD), Specialty Codes, and Coverage Package Codes (KPK) are assigned to ensure correct and uniform application of the relevant provisions. The guidelines also provide for the retroactive submission of supplementary APDs exclusively for the Lump-Sum Benefits Branch, covering the period from January 1, 2017 onward. This process can be carried out without the imposition of fines or other penalties until December 31, 2026, by which date the corresponding insurance contributions must also have been paid, if not already remitted.
Summary data requirements
The General Circular also includes detailed instructions for public sector services, public legal entities, local authorities, and Chambers regarding the submission of data for the payroll periods 2017–2019. These bodies are requested to submit consolidated data on contributions already paid, accompanied by the necessary supporting documentation, in order to facilitate accurate reconciliation of payments with APD declarations. Through these new guidelines, e-EFKA aims to resolve outstanding issues dating back to 2017, streamline the insurance and contribution reporting process for the Lump-Sum Benefits Branch, and ensure the uniform application of insurance legislation by all public bodies and employers falling within the scope of the relevant provisions.
Published in Apogevmatini
