One in Three Greeks Work Without Social Security

Posted by in Economy, Society

One in three Greeks work without social security. According to data collected from the country’s biggest insurance fund IKA for the time between January-July 2012, controls conducted by labour inspectors showed that 12,629 employees were working without social security. That is, people work without enjoying any health care or having any perspective to get a pension some day. No to mention that they’re deprived from employees’ right to unemployment allowances and other benefits.

There were 11,621 inspections in several businesses employing a total of 35,674 people.

In comparison:

Jan-July 2011: 29.11% without social security

Jan-Jul 2012: 35.5% without social security

The shocking data allegedly alarmed the Labour Ministry but for different reason. He saw just a danger for the insurance funds revenues.

Labour Minister Yiannis Vroutsis  wants to  take action to combat evasion of social security contributions and promotes a cooperation plan among the IKA, the Economic Police and the Labour Inspectors, stressed daily Imerisia.

At the same time, there is discussion about the creation of a unified mechanism for the collection of contributions by the social security funds, a mechanism that will include also the collection of outstanding debts by enterprises.

This collection mechanism was discussed with representatives of the Troika on Tuesday.

PS I remember to have read recently that the Labour Ministry wanted to create a system where employers will pay their employees only via bank accounts, while the social insurance contributions will be automatically transferred to the insurance funds.  What happened to this plan? *sigh*