Tuesday , July 23 2024
Home / News / Economy / Council of State rules self-employed EFKA contributions against Constitution

Council of State rules self-employed EFKA contributions against Constitution

A ruling of Greece’s highest court, the Council of State, puts at risk the stability of the Unified Social Security Institution (EFKA) as it considers the social security contributions for large categories of self-employed as against the Constitution.

According to media information, the CoS ruled last Friday with votes 17 vs 8 votes in favor of self-employed and self-employed scientists that the EFKA reforms implemented by then Labor Minister Giorgos Katrougalos beginning of 2017 were against the Constitution.

Self-employed groups have turned to the CoS considering the new calculations of their social contributions as much too high. The contributions are 26.95% of the declared income.

The CoE ruling reportedly refers to the self-employed categories of lawyers, doctors, engineers, scientists, farmers and others.

Against the Constitution is therefore

  • the integration of self-employed (scientists, engineers, doctors, lawyers, farmers and others) in EFKA as wells as the calculation of social security contributions according to self-employed income criteria.

On the other hand, the integration of public sector workers and employees in the private sector was conform with the Constitution, the CoE ruled.

The Lawyers’ and the doctors’ associations welcomed the ruling, however, it is not official yet.

Ex Labor Minister and initiator of the EFKA, Gorgos Katrougalos, told media that the EFKA law would have to be adjusted accordingly. He underlined, however,  that there is no official ruling yet. The CoS would need to officially write down its ruling before it goes into effect.

Katrougalos said that 80% of the self-employed pay less than they used to but “20% pay more and it is normal that they react.”

At the same time, he threatened the media that revealed this decision saying “those who disseminate various information are at risk of a criminal offense for violating judicial secrets.”

Check Also

Hellenic Train claims €40mn compensation from Greek state

The Hellenic Train, the private company operating passengers and freight trains across Greece, claims 40 …