Those who leave all contributions unpaid and pay them in 12 installments will pay up to 20 euros more than if they paid the contributions on time. The mechanism of 12 or 24 installments works in such a way that professionals can postpone the payment of their contributions every two months, putting them in a permanent arrangement. For example:
1 Professional who is in the 1st insurance category for 2024 and has left unpaid the contributions of the first two months can settle them with an application in April which will have become due. The total debt for the two months is 496 euros and with interest the amount to be settled amounts to 511 euros. By choosing the 12 installments, he will pay the minimum amount of 50 euros per month. He can do the same if he leaves unpaid the contributions of the next or even the following two months. Attention: In order not to lose the arrangement, the current contributions must be paid, but they become overdue the following month from the end of their normal payment period. This means that the 12 installment arrangement can be activated every two months, facilitating the payment of contributions with one, two or even three 12 installment arrangements and with a minimum installment of 50 euros per month for each.
2 Lawyer who pays a contribution of the 3rd category, for main pension, for auxiliary and for one-off pays from 1/1/2024 a total of 458.09 euros per month. If he leaves the 2024 contributions unpaid, he will create a debt of 5,497 euros, which he can settle next December. If he chooses the 12 installments, he will pay a monthly installment of 472 euros, while with the arrangement of 24 installments the monthly installment for his contributions comes to 242 euros.
3 Professional who is in the 6th insurance category for 2024 with a monthly contribution of 652 euros, if he has no other debts and leaves all contributions for 2024 unpaid, he has the possibility to settle them in February 2025, because then his contribution will also have become overdue December 2024. The total debt will be 7,825 euros and if he settles it in 12 installments he will pay 672 euros per month, while with 24 installments he will pay 345 euros per month. In practice, the monthly contribution of 652 euros is paid in 24 installments with half the money each month (345 euros). The cost he will have from the arrangement is the interest which for the 24 installments comes to 456 euros, while for the 12 installments it is 235 euros.
4 Doctor who pays a contribution of the 3rd category, for main pension and pays in one lump sum from 1/1/2024 a total of 394.56 euros per month. If he leaves contributions unpaid throughout 2024, he will create a debt of 4,735 euros, which he can settle in 12 to 24 installments. In the first option (12 installments) he will pay a monthly installment of 406 euros, while with the arrangement of 24 installments the monthly installment for his contributions comes to 209 euros.
5 Young lawyer, who is in his 3rd year, pays the special category contribution, which is 163 euros per month. Together with auxiliary and one-off it comes to 237 euros. If he leaves the contributions unpaid throughout 2024, he will create a debt of 2,844 euros, which he can settle in 12 installments, paying a monthly installment of 244 euros, or in 24 installments, paying 125 euros per month.
Small dose for those they owe up to 8,000 euros
The two permanent arrangements of debts to EFKA in 12 and 24 installments benefit those who have debts up to approximately 8,000 euros. In this way those professionals who plead failure to pay their month-to-month contributions can use the arrangements to either include the whole year’s contributions or some months’ unpaid contributions. In practice, EFKA’s standing arrangements make it easier for those with few debts, who can pay them off in arrears with successive standing arrangements.
The positives of the arrangements – which are the only ones that can be used by those who owe money to the Funds – include the interest rate that remains “frozen” at 5.5% and has not received any of the five interest rate increases decided in 2023.
If the interest rate did not “freeze” today it would be over 8%. The suspension of the increase applies to 2024 and 2025.
They do not revive old settings
The old arrangements for debts to the Funds will not be reinstated as was done with the arrangements of the tax office for those who lost them. This decision has been reached by the Ministry of Labor following a recommendation by EFKA. The way out provided by the two permanent arrangements for the settlement of small debts from the unpaid current contributions is one of the reasons why the revival of older arrangements is not considered as was done with the abandoned arrangements of the tax office. If the old arrangements at the Funds were revived, few borrowers would be able to respond, as to rejoin they would have to pay all the missed installments. On the contrary, if one looks at the figures of the KEAO, one will find that 500,000 debtors benefited from the 12 and 24 installments, while another 450,000 abandoned them.
THE MONTHLY INSTALLMENTS FOR THE FREE PROFESSIONALS WITH ONE YEAR’S CONTRIBUTION SETTING
| CATEGORY | MONTHLY PAYMENT 2024 | ANNUAL CONTRIBUTIONS DUE 2024 | DEBT SETTLEMENT | |
| MONTHLY AMOUNT IN 12 INSTALLMENTS | MONTHLY AMOUNT IN 24 INSTALLMENTS | |||
| 1 | 248,22€ | 2.978,64€ | 256€ | 131€ |
| 2 | 295,87€ | 3.550,44€ | 305€ | 157€ |
| 3 | 352,59€ | 4.231,08€ | 363€ | 187€ |
| 4 | 421,78€ | 5.061,36€ | 434€ | 223€ |
| 5 | 503,46€ | 6.041,52€ | 519€ | 266€ |
| 6 | 652,06€ | 7.824,72€ | 672€ | 345€ |
From Sunday’s print edition of the Free Press
Rooster and lamb on the spit – All the secrets for roasting by Petros Syrigos
Traffic fees: Starting today, May 1st, monthly payment begins – How is it calculated?
May 1st strike: The marches are over – What will happen to the means of transport
Survivor trailer 1/5: “No, no!” – With screams and tears the tragic end of Asimina Hatziandreou from the game
Paul Auster: The famous American author died at the age of 77
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