The new plan for the settlement of overdue contributions to the Social Insurance Fund was implemented yesterday. Arrears to the Fund amount to €245 million. And with the new regulation, thousands of debtors, i.e. employers and self-employed, will be given breathing space. The start of the plan was made with the publication of two notifications by the Minister of Labour, Marinos Mousiouttas, in the Official Gazette of the Republic.
Yesterday, the submission of applications began, which will be forwarded electronically until September 14. The new overdue debt scheme is aimed at employers and covers debts up to and including February 2026. At the same time, it also covers the self-employed, who had debts up to the fourth quarter of 2025.
The number of instalments
According to the provisions of the new plan, which is a continuation of the two previous plans implemented in 2016 and 2021, debtors can pay off their debts through 54 equal monthly instalments. In fact, in case they choose to pay their debts earlier than the 54 instalments, they will benefit from a corresponding reduction in the additional fee, which can reach up to 27%.
For example, if debts are paid in 24 instalments, debtors will be exempt from 30/54 of the total amount of the additional fee.
The minimum instalment
At the same time, the new plan provides that the minimum amount of each monthly instalment is €25 for a debt of up to €500, €50 for a debt of €501 to €1,000 and €75 for a debt of €1,001 and above.
According to the provisions of the plan, in order for the regulation to be valid, in addition to the monthly instalment, all current contributions must be paid on time, i.e. for employers the contributions from March 2026 onwards and for self-employed workers from the first quarter of 2026 onwards.
It should be noted that once the applicants' applications are approved, within 15 days from the receipt of the notification of the decision, the duly completed declaration of acceptance must be submitted, which will be sent with the approval letter.
In the meantime, the approval letter sends a list of the debts and the amount of the monthly instalment to be paid. The first instalment may be paid at the same time as the submission of the declaration of acceptance of the approved arrangement or, at the latest, by the last day of the month in which the declaration of acceptance of the approved arrangement is submitted, while each of the remaining instalments is paid no later than the last day of the month to which it corresponds.
Payment of a larger instalment
In the context of the settlement, in the event that a larger amount is paid than the specified instalment, this will be taken into account either for the payment of subsequent instalments or for early payment of the total debt.
In case of delay of one instalment, it can either be repaid with the next instalment or the amount due to it can be divided equally in the remaining instalments. At the same time, in case of failure to pay current contributions on time and/or delay in the payment of an instalment for more than three months, the arrangement will be cancelled.
Prosecutions will be suspended
It is noted that for those debtors who join the new plan, during it the Social Insurance Services will not proceed with legal measures against them. In the event that criminal charges have been registered against them, they will be suspended with the approval of the Attorney General.
Finally, for those who have pending imprisonment or seizure warrants against them, these may be suspended after relevant actions by the Attorney General.
