The President of the Union for the Defense of Labor and the Welfare State (ENYPEKK), Alexis Mitropoulos, warned that freelancers and farmers in Greece owed the country’s Social Security Organization (EFKA) an amount totaling approximately one-fourth of Greece’s GDP.

As a report by ENYPEKK notes, self-employed professionals in Greece are under severe financial burden due to imputed taxation and yearly hikes in social security contributions, which, according to the study, are leading to widespread impoverishment.

Hundreds of thousands of freelancers and farmers have been unable to pay their contributions to social security funds, particularly following austerity measures and the pandemic, the data of the study revealed. As of April 1, 2024, many, along with their families, have lost their health coverage due to unpaid or unregulated debts. This worsening situation is largely attributed to imputed income taxation and annual increases in contributions.

According to the report:

70% of self-employed professionals owe payments to EFKA.90% have opted for the lowest insurance class.40% lack healthcare coverage due to unpaid contributions.80% are expected to receive pensions of no more than €800 gross.Approximately 300,000 professionals are ineligible for pensions due to outstanding debts.

Specifically, over 300,000 insured professionals—now under EFKA from previous independent funds—are at risk, many already of advanced age, unable to retire due to debts exceeding €20,000 for freelancers, €15,000 for scientists, and €6,000 for farmers.

Debt and Debtors

As of the second quarterly report of 2024 from the Social Insurance Debt Collection Center (KEAO) (April-June 2024), data indicates:

The total debt to KEAO reached €48.58 billion by the end of June 2024.
Non-salaried EFKA debtors from former social security and external funds totaled 1,662,857 insured.
Non-salaried EFKA members, including former OGA-insured, accounted for 1,106,389 individuals (835,052 plus 271,337).

The Union for the Defense of Labor and the Welfare State (ENYPEKK) is an independent association primarily composed of scientists, mainly legal professionals.

It was established in 2010, coinciding with the publication of the first draft of the initial Memorandum agreed upon by the socialist government of George Papandreou with the European Union and the International Monetary Fund, which became known as the TROIKA.