Υπ. Of Labor: Reduction of auxiliary insurance contributions from 6.5% to 6%

From today 1/6/2022 the amount of auxiliary insurance contributions is reduced from 6.5% to 6%, equal for employers and employees. This decrease follows the reduction by 3.9 percentage points of the social security contributions that were voted and applied in the previous two years (2020-2021).

As a result of these reductions in the so-called “tax wedge”, the disposable income of employees increases and, at the same time, there is a reduction in the non-wage costs of companies.

These, in turn, lead to increased business competitiveness and enhanced employment.

According to Eurostat data, especially for low-wage workers, while in 2019 based on the size of the “tax wedge” Greece was in 14th place among EU member states, in 2021 it rose to 5th place and with today’s reduction its ranking is expected to further improve.

The Deputy Minister of Labor and Social Affairs, Mr. Panos Tsakloglou, stated: “The reduction of insurance contributions, in combination with other government policies (tax, regulatory, licensing, etc.) leads to a rapid de-escalation of unemployment and an increase in employment. According to the latest data, since the New Democracy took over the government and despite the pandemic and war crises in Ukraine, the unemployment rate has fallen by 5 percentage points while employment has increased by almost 350 thousand people. continue to seek to reduce non-wage labor costs which lead to improved business competitiveness, increased employment, increased disposable income of employees and, ultimately, improved welfare of citizens “.