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UPD EFKA fund to return €170-€2,700 to 400K self-employed and freelancers

Social security fund EFKA will have to return money to 400,000 self-employed and freelancers after calculation mistakes led to increased social security contributions in 2017. With the new social security contributions system in effect as on 1.1.2017, self-employed and freelancers pay contribution according to income criteria.

However, what the social security fund asked the insured to pay in the first months of 2017 it was much higher than it should be.

Social security contributions to EFKA were paid to income declaration of 2016 for the fiscal year 2015. However, the income declarations of 2017 for the fiscal year 2016 showed that self-employed and freelancers had declared lower income. Therefore, the system calculations turned to be wrong.

According to an exclusive report by daily Eleftheros Typos, thousands of self-employed, freelancers, among them farmers, pharmacists, engineers, and other professional categories, paid in the first seven months of 2017 social security contributions for the whole year.

Those who declared lower income for the fiscal year 2016, will have to receive back part of the contributions they paid. For some the extra charge due to calculation mistake was even 76%.

Example

Farmer with income 13,716 euros in fiscal year 2015, had to pay in social security contributions 240 euro per month. He declared income 7,774 euro for fiscal year 2016. This means, the contributions had to be at 137 euro per month.

The social security fund has to return 735 euros or the farmer is not obliged to pay any contribution for the rest of 2017.

EFKA returns are between €170 and €2,700

The social security fund for self-employed and freelancers EFKA will now have to reimburse the money either through ‘deductions’ in contributions for the rest of the year or by returning money to insured.

Most possible option is a combination of these two: Those entitled to big returns will see lower contributions for the next months and refund, while an offset is most possible for those entitled to smaller returns.

For further details, always ask your accountant.

PS It was clear from the very beginning that the system would not work as planned, because the economic situation is still very unstable. The same is valid with paying 100% taxes in advance.

UPDATE: Deputy labor Minister in charge of Social Security Tassos Petropoulos dismissed the Eleftheros Typos report. Speaking to state broadcaster ERT TV, Petropoulos said the number of 400,000 insured was false and there will be no contribution returns. He blamed the opposition for the report.

As said above: ask your accountant!

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