kathimerini.gr
Delayed Wage Index Increases Greek Self-Employed Contributions by 2.7%
Over 800,000 self-employed Greek workers will face a 2.7% increase in social security contributions starting January 2025 due to the delayed implementation of a new wage index, resulting in a €6.43 monthly increase for the most popular insurance category, while a potential further increase is expected in 2026.
- Why was the inclusion of public sector wages in the wage index opposed by representatives of the self-employed?
- The delay stems from a disagreement on whether to use a wage index including both public and private sector wages. Representatives of the self-employed warned that including the public sector would lead to significantly higher increases in contributions. The Ministry of Labor requested separate indices for the public and private sectors, but this has not yet been completed, causing the delay.
- What is the immediate impact of the delayed wage index on self-employed workers' social security contributions in Greece?
- Starting January 2025, social security contributions for over 800,000 self-employed Greeks will increase by 2.7%, reflecting the 2024 average annual inflation rate. This follows the delay in delivering a wage index, pushing back adjustments based on that metric to potentially 2026. The monthly increase for the most popular insurance category is €6.43.
- What are the potential long-term implications of delaying the implementation of the new wage index for calculating social security contributions?
- The 2.7% increase, based on inflation, is a temporary measure. The long-term impact depends on the future implementation of a wage index, potentially impacting self-employed individuals' contribution rates significantly. The delay until 2026 allows for further economic analysis and potentially avoids significantly higher increases initially.
Cognitive Concepts
Framing Bias
The article frames the increase in contributions negatively, focusing on the financial burden on self-employed individuals. While it mentions the potential benefits of using a wage index in the future, this is presented as a distant and uncertain prospect, downplaying its importance. The headline (if there was one) likely amplified this negative framing.
Language Bias
The article uses loaded language such as "poly-αναμενόμενος" (much-awaited) in describing the wage index, which implies frustration and disappointment with the delay. The term "αρνητικές συνέπειες" (negative consequences) is used repeatedly to describe the potential impact of the wage index, influencing the reader's perception. More neutral terms could be used, such as "potential impact" or "consequences."
Bias by Omission
The article focuses primarily on the immediate impact of the 2.7% increase in contributions for self-employed individuals, without delving into the potential long-term consequences of this decision or exploring alternative solutions. The article also omits discussion of the potential reasons behind the delay in delivering the wage index to the Ministry of Labor, and the political considerations in this decision.
False Dichotomy
The article presents a false dichotomy by implying that the only options are to increase contributions based on inflation or to use a wage index that includes both public and private sector wages. It doesn't explore other potential solutions or methods for calculating the contribution increases.
Sustainable Development Goals
The increase in contributions for self-employed individuals, freelancers, and farmers exacerbates existing inequalities by disproportionately affecting lower-income individuals and potentially hindering their economic advancement. The delay in implementing a wage index that could better reflect actual income growth further contributes to this inequality.