The government is preparing an intervention to freeze EFKA insurance contributions, preventing excessive increases that would significantly burden 1.6 million freelancers and farmers. The economic team is examining ways to avoid implementing the new calculation system provided by the Vroutsis law from January 1, 2026.
Insurance contributions: Double increases threaten non-employees
According to current law, insurance contributions for non-employees should be adjusted based on the Wage Price Index instead of the average inflation rate currently applied. This change would lead to double contribution increases, worsening the debt problem towards EFKA.
The government intervention aims to maintain the existing calculation regime, preventing the implementation of the new system. Alternatively, separating the increase in insurance contributions from the increase in pensionable earnings is being examined.
The Vroutsis law and its provisions
The new insurance contribution adjustment system was established in 2020 with Law 4670, known as the Vroutsis law. This replaced the previous income-based contribution system of the Katrougalos law, which was deemed unconstitutional by the Council of State.
During the SYRIZA government period, insurance contributions were calculated at approximately 20% of non-employees’ turnover. The Vroutsis law provided for:
• Fixed contributions for the 2020-2022 period
• Inflation-based increases for 2023 and 2024
• Wage index-based adjustment from 2025
Economic impact on professionals
With the wage index, the increase in insurance contributions for 2026 will be double compared to inflation. Wages increased by an average of 5.5% in 2024 in the private sector, while including public employees, the average increase may exceed 6%.
If the wage index is applied in 2026, the burdens for professionals will range from 14 euros monthly for the first category (total premium 259 euros) to 39 euros for the sixth category (total premium 700 euros).
The EFKA debt problem
The collectability of freelancers’ debts is expected to be clarified by 2027, when private law firms will participate in the KEAO system. Last June, EFKA had sent 3 million notices to debtors threatening enforcement measures.
Principal debts amount to 30.2 billion euros, with an additional 20.1 billion euros in interest and surcharges. An amount of 10.2 billion euros is considered uncollectible. 70.57% of debtors (1,489,159 people) have debts up to 15,000 euros, while 87.57% (1,847,876 debtors) owe up to 30,000 euros.
Published in Apogeumatini
