e-EFKA: 4monthly extension in the repayment of insurance contributions



Extension of four months for repayment 1,08 billion. euro insurance contributions arising from the liquidation of the year 2019 gives the government to more than 800.000 non-employees, employees with parallel employment and farmers.

A relevant amendment is expected to be submitted to Parliament by the Minister of Labor and Social Affairs Giannis Vroutsis which will provide that the repayment of the first of the five repayment installments will not begin at the end of November, but on 31 Of March 2021.
According to the available data of e-EFKA, 800.349 self-employed, self-employed, employees with parallel employment and farmers on average, are required to pay 1.355,61 euros each, in five monthly installments with their total amount of debt amounting to 1,08 billion. euro. This number corresponds to 53% of all self-employed, who last year paid contributions lower than those corresponding to the income they finally declared on their tax return for 2019.
At the same time e- EFKA will be called back 208,3 million. euros in approx 345.000 insured persons who paid higher amounts than those corresponding to their declared income, while in 359.000 insured resulted in zero liquidation.
The government, due to the emergency measures taken for the coronavirus pandemic, decided to postpone the repayment of the contributions of previous years..
Upon completion of the clearance of his notifications 2019 permanently closes the chapter of the complex process of calculating and collecting insurance contributions for 1,5 million insured introduced by law 4387/2016 (Katrougalos), as by 1/1/2020 the insured choose at the beginning of each year the amount of monthly contributions they will pay based on their financial ability. The payment order codes that were valid until the payment of the specific installments of contributions will be used. 31/12/2019.
It is recalled that the Katruggalo law provided that the insured must pay for any income they have from free activity initially 20% in insurance contributions, which was then reduced to 13,33%. However, The clearance of the contributions came after a year in which the tax returns were submitted and after the clearance hundreds of thousands of policyholders were asked along with the current contributions to pay additional amounts for the previous year.
This method of calculation was deemed unconstitutional by the Council of State for those who do not have an employer (self-employed, freelancers) compared to employees, as it runs counter to the principle of equality. Outside the constitution, the court considers its limit 20% provided by the Katruggalo law, while respectively the corresponding percentage for employees is 6% because the rest is from the employer.
So from January 1st 2020 the calculation of insurance contributions is decoupled from the declared income. Unemployed people choose from specific insurance categories.

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