Greece Plans to Lower Employer Pension Contribution 25% by 2013

[Joanne98]

Source: Bloomberg

Greece plans to reduce employer pension contributions from next year to help reduce tax evasion and remove an obstacle to employment, said Louka Katseli, employment and social-security minister.

The state will cut pension contributions 25 percent in stages by 2013, Katseli said at a conference in Athens yesterday. To qualify for the reduction, a company must have no debts outstanding to any of Greece’s social-security funds. It must also sign up to an electronic system that will enable the Labor Ministry to track people’s work hours starting next year.

“Our top goal is the reduction in the non-tax cost of doing business,” said Katseli, adding that the success of the country’s social-security revamp will depend on Greece returning to economic growth.

Reforming the Greek pension system was one of the conditions for a 110 billion-euro ($145 billion) bailout from the European Union and the International Monetary Fund in May. The government passed a law in July overhauling the system, including lowering pensions and delaying retirement.



Read more: http://www.bloomberg.com/news/2010-12-21/greece-plans-to-lower-employer-pension-contribution-25-by-2013.html

[dkf]

1. Well that is the carrot to stop their rampant underground economy.

Better to broaden the base than to tax the few law abiding Citizens into oblivion.

[dipsydoodle]

2. UK did similar in June budget

with respect to new employees excluding the south east. Done to encourage businesses to recruit more. Normal employers Class 1 rate is 12.8% to cover NH and pensions.

In the case of Greece cut by 25% from what ?