The decision reached by the Council of State regarding the national insurance issue

The Council of State has decided accordingly:

• It has rendered unconstitutional all cuts (that had occurred in the summer of 2016) of 260.000 supplementary pensions, in case their total sum supersedes the amount of 1.300, 00€ brutto, exactly because they had been imposed without any previous proportional estimations, therefore in contradiction to the constitutional principle of equity and proportionality. This decision has no retroactive effect, therefore pensioners shall not be able to claim the return of that money that had been deducted from their supplementary pensions in previous times.
• The recalculation has been rendered unconstitutional, making, thus, the return of these retroactive sums not to be considered possible by pensioners.
• The law regarding the calculation of contributions owed by self-employed and freelancers which had been estimated according to the income as compared to the employed personnel has been rendered unconstitutional, basically by having decided that the limitation of 20% as set by Katrougalos Law is unconstitutional. It is highlighted the fact that the respective amount regarding employed personnel comes up to a percentage of 6% and the remaining rest is to be covered by the employer; Since 01.01.2019 the percentage of 20% has been decreased to 13, 3%. The decision has ruled that the contributions should be based by first taking into consideration the tax contributive ability of the employees “without having the during the working lifetime produced income affected as opposed to the scope of ensuring the income after the termination of the working lifetime period”.
• Katrougalos Law has been rendered unconstitutional as far as the percentage of pensions replenishment is concerned, as far as the larger pensions are concerned and as far as the pensioners that have been employed for lots of years and they have reached the highest replenishment percentage of 46, 8% regarding 42 years of insurance.
• The relevant decisions shall not have a retroactive effect and their consequences shall be in effect as of the first day of publication.

 


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