EFKA receives front-loaded state dues

The government has offered indirect financing to the Single Social Security Entity (EFKA) in the first four months of its operation so that the fund can cover its obligations.

The state budget’s execution details for the January-April period show that the state, as an employer, paid social security contributions of 233 million euros to EFKA, which amount to 71.4 percent of its total annual obligation as calculated by the Finance Ministry.

Kathimerini has revealed that for this year the state has determined the employer social security contributions it will pay at just 3.33 percent, depriving the pension fund of at least 1 billion euros, while all other employers are forced to pay EFKA contributions amounting to 13.33 percent of salaries.

The total amount the state has to contribute as an employer this year has been estimated at 327 million euros. Had the flow of contribution payment been normal, it would have only paid around 107 million euros by end-April, amounting to 33 percent of the annual obligation.

It is obvious that once the state has paid 100 percent of the budgeted contributions for the civil servants it employs, the extent of its support to EFKA will be severely reduced.