Pensions: plan to reduce 50% of the solidarity contribution

Increases to 800,000 pensioners with earnings from main pensions of more than €16,800 per year – who are the direct beneficiaries and from which funds

The government plans to announce improvements to the current measure of pensioners’ solidarity contribution (EAS) to the pensions of 800,000 pensioners.

Reliable information indicates that the base scenario, to be included in the pre-election program for ND, would expect continued imposition of EAS, as now, i.e. in the full amount of the pension, but at half the percentages of each measure.

This is the special contribution to solidarity with retirees, imposed by the first memorandum for principal pension amounts over 1,400 euros (16,800 annual income), in order to cover the system deficit from the AKAGE (Generational Solidarity Insurance Fund) account.

EAS (contribution in favor of AKAGE) is imposed on approximately 800,000 pensioners in the state, IKA, DEKO funds and banks, ETAA and NAT, with a main pension or total main pension over €1,400.

The government has already abolished, as of 1/1/2023, the Solidarity Tax which was levied in taxes on employees, civil servants, the self-employed and retirees with an income of more than 12,000 euros.

This contribution to the private sector has been suspended from 2021.

It remains for pensioners

On the contrary, the private solidarity insurance contribution for pensioners (EAS) that was imposed on 1/8/2010 remains and is paid normally (for the account of the Social Insurance Agency) in order to cover the deficit in the social basic pension branches. security bodies. The respective tax is levied on incomes above 1400€ on a spot basis.

An additional contribution of between 3% and 10% is paid by pensioners who have 300 euros or more. This means that there are retirees who paid more with EAS than the raise they received.

For example, a pension of up to €1,400 was not subject to the pensioners’ solidarity contribution (EAS). After adjusting (7.75%), it comes to €1,508.5, which results in an additional €25 tax, €45 for social security (3% of gross salary) and an additional €7 for health (EOPYY). That is, of the €108.56 increase, €77 or 71% of the increase was withheld.

Instead of an increase of 7.75%, only 2.20% ended up in the pocket. That is, the annuity in the example did not have inflation cap because the increases caused tax dominoes.

“hidden taxes”

AGSSE (Greece’s Supreme General Union of Pensioners) requests the indexation of the tax scale and the progressive reduction of the Solidarity Contribution (EAS). Besides, as the AGSSE notes, the reasons for this (insurance deficit) have been eliminated.

During the period of the union now, the revenue from the EAS has exceeded 20 billion euros over the years and this amount is another hidden tax that reduces the income of retirees.

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