Greece has a comprehensive social security system designed to provide financial protection and support to its citizens and residents in various aspects of life, including healthcare, pensions, unemployment, and family benefits. The system is funded through mandatory contributions from employees, employers, and self-employed individuals. Below is an overview of how social security works in Greece, including contribution rates, eligibility criteria, and the benefits available.
1. Overview of the Greek Social Security System
The Greek social security system is managed by several organizations, collectively referred to as Social Insurance Funds (SIFs) or EFKA (Ενιαίος Φορέας Κοινωνικής Ασφάλισης) . EFKA was established in 2017 to consolidate multiple funds into a unified system, simplifying administration and improving efficiency.
Key objectives of the system include:
- Providing universal access to healthcare.
- Ensuring income stability during periods of unemployment, illness, or retirement.
- Supporting families with children and other dependents.
Contributions are mandatory for all workers, whether employed, self-employed, or pensioners, and are calculated as a percentage of earnings.
2. Social Security Contributions
Social security contributions are shared between employees and employers, with self-employed individuals paying both portions. The rates vary depending on the type of employment and income level.
a. Employees
For salaried workers, contributions are split between the employee and employer:
- Employee Contribution: Typically around 6.67% of gross salary.
- Employer Contribution: Around 28.56% of gross salary.
- Total contribution: Approximately 35.23% of gross salary.
These contributions cover:
- Healthcare.
- Pension insurance.
- Unemployment benefits.
- Family allowances.
b. Self-Employed Individuals
Self-employed individuals contribute based on their declared income:
- Contribution rate: Between 20% and 29% , depending on profession and income bracket.
- Payments are made quarterly or annually to EFKA.
c. Pensioners
Pensioners also contribute to social security, albeit at reduced rates:
- Contribution rate: Around 4% of their pension amount.
3. Social Security Benefits
The Greek social security system offers a wide range of benefits to ensure financial stability and access to essential services. Here’s a breakdown of the key benefits:
a. Healthcare
- Coverage: All insured individuals have access to public healthcare services through the National Health System (ESY).
- Services Provided:
- Free or subsidized medical consultations, hospital stays, surgeries, and medications.
- Preventive care, such as vaccinations and screenings.
- Emergency services.
- Additional Costs: Some treatments may require co-payments or additional fees, but these are generally low compared to private healthcare.
b. Pensions
Greece offers three types of pensions:
- Old-Age Pension:
- Eligibility: Typically requires at least 15 years of contributions and reaching the statutory retirement age (currently 67 years as of 2023).
- Amount: Calculated based on average earnings and total years of contributions.
- Disability Pension:
- Available to individuals unable to work due to permanent disability.
- Requires a medical assessment to determine eligibility.
- Survivor’s Pension:
- Paid to spouses, children, or dependent parents of deceased insured persons.
- Amount depends on the deceased’s contributions and family circumstances.
c. Unemployment Benefits
- Eligibility: Insured workers who lose their jobs involuntarily and meet minimum contribution requirements (e.g., at least 12 months of contributions in the last 4 years ) can claim unemployment benefits.
- Duration: Benefits are paid for up to 12 months , depending on prior employment history.
- Amount: A percentage of the worker’s previous earnings, capped at a maximum limit.
d. Family Allowances
- Purpose: To support families with children and reduce child poverty.
- Eligibility: Families with dependent children under the age of 18 (or older if still in education).
- Amount: Varies based on household income, number of children, and regional factors. For example:
- Low-income families receive higher allowances.
- Additional support is available for single-parent households.
e. Maternity and Parental Benefits
- Maternity Leave: Pregnant women are entitled to 17 weeks of paid leave , typically split between pre- and post-natal periods.
- Parental Leave: Both parents can take unpaid parental leave for up to 4 months per child until the child turns 6.
- Financial Support: Lump-sum payments are provided upon childbirth, along with ongoing family allowances.
f. Sickness and Disability Benefits
- Sick Leave: Insured workers receive a portion of their salary during short-term illnesses (up to 183 days ), funded by social security.
- Long-Term Disability: Workers with severe health conditions may qualify for disability pensions or rehabilitation programs.
g. Housing and Rent Subsidies
- Purpose: To assist low-income households with housing costs.
- Eligibility: Based on income thresholds and family size.
- Support Types: Includes rent subsidies, energy bill assistance, and emergency housing aid.
4. Recent Reforms and Challenges
In recent years, Greece has implemented significant reforms to address fiscal challenges and improve the sustainability of its social security system. Key changes include:
- Increasing the retirement age to 67.
- Raising contribution requirements for pensions.
- Streamlining administrative processes through EFKA.
Despite these efforts, challenges remain:
- High unemployment rates affecting contributions.
- An aging population placing pressure on pension funds.
- Limited resources for expanding healthcare coverage.
5. How to Access Social Security Benefits
To access social security benefits in Greece, follow these steps:
- Register with EFKA: Ensure you’re registered with the appropriate Social Insurance Fund.
- Provide Documentation: Submit required documents, such as proof of income, employment contracts, or medical certificates.
- Apply Online or In-Person: Many services can now be accessed via the official EFKA website (www.efka.gov.gr ), though some applications still require in-person visits.
- Seek Assistance: If unsure about eligibility or procedures, contact local offices or consult legal advisors.
6. Special Considerations for Expats
Expats living and working in Greece are also subject to social security contributions and can access benefits, provided they meet certain conditions:
- EU/EEA citizens: Covered under EU regulations, allowing them to transfer contributions across member states.
- Non-EU citizens: Must hold valid residency permits and comply with Greek labor laws.
Additionally, bilateral agreements between Greece and other countries may exempt certain expats from double taxation or overlapping contributions.
