New social security contributions lead to the ‘death of the Greek salesman’

Social security contributions for self-employed will be doubled

Over one million of self-employed are on high alert after the announcement of changes in the social security contributions according to the new draft law on social security system reforms.

Even those who declare a 20,000euros annual income, they will be called to pay higher contributions to the insurance organization for the self-employed (OAEE).

For example, for a self-employed, who earns 70,000 euros annually, his contributions to OAEE will be increased by 223%. That means that those who belong to the highest class of OAEE and pay 7,000 per year on contributions, with the new law they will have to pay 18,000 euros per year.

The new law, though, favors those with low annual income who currently pay 245 euros per month. That means that a self-employed who declares net profits less than 9,600 euros per year will be able to pay a lower amount of 117 euros per month. On the other hand, for self-employed with higher incomes (including the honest taxpayers) the amount of social security contributions will be doubled.