According to Law 4387 / 16, article 97, paragraph 1, as of 01.06.2016 until 31.05.2019 there is an increase by 1% of the monthly contribution percentage for the additional insurance in the integrated social security fund Ε.Τ.Ε.Α (former IΚΑ) concerning all employees, which shall be calculated to 3,50% for the insured employee, and 3,50% for the employer on the salary remuneration amount of the employee, instead of 3%, which as the rate applicable up to now both for the insured employee and the employer.  

According to the aforementioned Law (article 94, paragraph 4), as of 01.01.2016 the special increment of the pension insurance in the engineers sector of the Greek insurance fund TSMEDE is abolished.

For the settlement of the differences of the special increment, arising for the period from 01.01.2016 to 31.05.2016, there is a relevant announcement expected to be received from the social security fund TSMEDE.

To this point we would like to note that the aforementioned maximum (limit) amount for the calculation of the contributions of the social insurance fund TSMEDE, is now defined at € 5.860,80 as of 01.06.2016.

Finally, according to article 38, paragraph 10 of the aforementioned law, as of 01.07.2016 the salary remuneration of the employees in the private sector, the social security contributions, as well as the withholding tax on salaries shall be deposited by the employer via bank account remittance and shall then be transferred accordingly to the accounts of the beneficiary employees, the social security funds and those of the Greek State.

For this reason, each liable employer must sign a relevant contract with the bank of the his choice.

For the implementation of the aforementioned regulations there is a joint decision expected, of the competent authorities (Ministry of Finance and Ministry of Labor and Social Affairs), which shall define the necessary details.  

NOTE: This article does not cover advisory, but only informational purposes, and cannot serve, as a basis for further actions, on the part of   the reader. Reception of specialized advice is required.

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