Social Security contributions to the Greek Social Security Fund (IKA)
Distinction between employers’ and employee’s contributions
According to Greek social security legislation, employers are liable for the payment not only of their own contribution to an employee’s social security (employer’s contribution) but also to withhold and pay the employee’s contribution to the fund (employee’s contribution).
So, the general rule is that upon every payment, the employer must withhold from the payment of the employee’s salary the employee’s contribution and pay them to the Social Security Fund, together with their contribution.
Relevant time for the calculation and payment of the Social Security Contributions
As relevant time for the payment is the calendar month in which the employee has worked.
According to article 20 of law 4075/2012, which amended the provisions of article 26 of law 1846/1951, as of 11.4.2012, the deadline for the payment of the social security contributions is the 5th working day of the following month after the relevant (working) month. According to the previous status, before introduction of this provision, the deadline for payment of the insurance contributions is the last working day of the following month.
However, the Social Security Fund (IKA) has issued a circular by which the application of this amendment is postponed until June 2012 and it is possible that further postponement is granted.
Periodical Analytical Statements
Although, as mentioned above, the payments of the social security contributions to the Social Security Fund are made every month, every trimester, the employer must submit every trimester a so called “Analytical Periodical Statement”, in which those payments are recorded. It is announced that soon this will also change to the effect that the “periodical analytical statements” are filled every month instead of every trimester.
Calculation of the social security contributions
The social security contributions are calculated differently between workers that were insured between the 1/1/1993 and workers that were insure after 1/1/1993.
So, in order to calculate the applicable social security contributions that an employer must pay to the Social Security Fund, firstly it must be identified whether the employee falls under the first or the latter category (“old” or “new” category).
Social security contributions for the “old” category (workers that were initially insured before 1.1.1993):
The insurance contributions are fixed regardless of the actual salary that the employee receives and are calculated as follows.
A deemed salary of €2.432,25 is taken as a basis. The employer’s contribution is 28,56% of this deemed salary and the employee’s contribution which is withheld is 16,50%.
Social security contributions for the “new” category (workers that were initially insured after 1.1.1993):
The social security contributions are calculated on the actual salary of the employee. The same percentages apply, i.e. 28,56% is the employer’s contribution and 16,50% is the employee’s contribution (which is withheld from the salary). There is a salary “ceiling” of €5.543,55, above which the insurance contributions are calculated on that amount and do not go higher.