How much are the insurance contributions reduced from June 1st?

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The implementation of the measure of the reduction of the insurance contributions by 0.90 sum starts from June 1, 2020. units in paid work only for full-time jobs.

The measure comes as part of the 4670/2020 insurance reform that was passed in February 2020 and will help significantly, in combination with other legislative initiatives, in restoring employment and, in particular, in increasing full-time jobs.

The measure was passed before the coronation pandemic and is considered timely and necessary to shield and strengthen the labor market.

Following this reduction, all insurance contributions are as follows:

Employee insurance premiums until 31.05.2020 (PM)

Employer

Employee

Total

24.81

15.75

40.56

Hired labour insurance premiums from 1.06.2020 (PM)

Employer

Employee

Total

24,33

15.33

39.66

Detailed reduction (PM)

Employer

Employee

Total

-0.48

-0.42

-0.90

TOTAL OF INSURANCE INSURANCE (percentage points)

Regime valid until 31.05.2020

Predicted reduction

Insurance contributions from 1.06.2020

Employer

Employee

Employer

Employee

Employer

Employee

24.81%

15.75%

-0.48%

-0.42%

24.33%

15.33%

totals

40.56%

-0.90%

39.66%

A. Unemployment insurance contributions

Regime valid until 31.05.2020

Predicted reduction

Insurance contributions from 1.06.2020

Employer

Employee

Employer

Employee

Employer

Employee

3.17%

1.83%

-0.48%

-0.27%

2.69%

1.56%

Unemployment sector

5.00%

-0.75%

4.25%

B. Insurance contributions in favour of ELEKP for the implementation of social policies

Regime valid until 31.05.2020

Predicted reduction

Insurance contributions from 1.06.2020

Employer

Employee

Employer

Employee

Employer

Employee

0.00%

1.35%

0.00%

-0.15%

0.00%

1.20%

ELEKP branch (social policy)

1.35%

-0.15%

1.20%

Total intervention A + B

Regime valid until 31.05.2020

Predicted reduction

Insurance contributions from 1.06.2020

Employer

Employee

Employer

Employee

Employer

Employee

3.17%

3.18%

-0.48%

-0.42%

2.69%

2.76%

Total A + B

6.35%

-0.90%

5.45%

As stated by the Minister. Labor Giannis Vroutsis:

“Reducing insurance premiums will benefit the labour market as it reduces non-wage costs for businesses and motivates recruitment.

At the same time, it comes to act as a disincentive to delinquent and uninsured criminal behaviour. Today we are catching the thread where we left off in 2014, when at the Ministry of Labor we had again reduced insurance contributions by 6 points.

Let me remind you that both the reduction of the insurance contributions of 2014 and the new reduction that we are attempting from June 1, were voted against by SYRIZA. The previous political leadership of the Ministry. He opposed the work due to ideological obsessions with the policies of reducing non-wage costs and strengthening full employment, with the result that he launched flexible forms of work during the five years of SYRIZA’s rule.

That is why we, as stated by Prime Minister Kyriakos Mitsotakis, plan to further reduce insurance contributions in the coming period as a very important structural change that will accelerate the de-escalation of unemployment and increase employment.”

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