Who pays for the Katrougalos bill

Despite bill social security system seems unsustainable

Over 1.2 million Greeks will be affected by the social security draft bill introduced by Greek Labour Minister Giorgos Katrougalos, according to experts. Despite the Minister’s reassurances that the new measures would only affect 10% of Greek citizens, it is estimated that nearly 400,000 new pensioners will see cuts in their income, while 380,000 low pensioners will lose the ‘Social Solidarity Benefit’ (EKAS) and a further 180,000 will suffer huge cuts in their ancillary pensions.

Furthermore, 70,000 lump sum beneficiaries will see a cut between 12 and 15% to the benefit. 280,000 members of the Civil Servants Share Fund eligible for dividends will lose 35%, while 50,000 pensioners on the high end will incur large cuts to their income. In addition to these, over half a million insured farmers will be compelled to pay three times more insurance contributions, while 140,000 freelance professionals and 100,000 scientists will be ‘hit’ by the increased insurance contributions.

Despite these huge cuts across the border, the sustainability of social security system remains is highly doubtful, with the main reason being the demographic imbalance. The ratio of the active workforce contributing to social security to pensioners is slanted towards the latter, with fewer workers paying more money for the sustenance of a rising number of pensioners.