Record employment boosts EFKA coffers
The 20-year record in employment this year has generated bolstered social security contributions, leading to a surplus of some 1.78 billion euros for the Single Social Security Entity (EFKA) in 2022, with 2023 remaining on track for a surplus of €1.3 billion. This will be achieved despite a significant increase in pension costs by €1.27 billion, mainly due to an increase in pensions by at least 7% as of January 2023, for the first time in 12 years.
Draft budget data for 2023 show that this year, the surplus of the pension funds will be significantly increased compared to what was initially budgeted, thanks to the increase in employment by 6.7% in the whole of the first half and by 5% in the second quarter of 2022.
The increase in the number of employees was even higher both in the second quarter of 2022 and in the whole of the first half (6.6% and 8%, respectively), leading to increased dependent labor wages across the economy, at a robust 7.8% annualized rate in both periods.
Of course, from now and at least until March 2023, the government expects a temporary decline in the positive trend due to the increased cost of production and operation for businesses, and reduced demand, so for all of 2022 the employment growth rate is expected at 4.6%.
