A new scheme allowing employers and self-employed workers to settle overdue contributions to the Social Insurance Fund has come into force, covering debts that have reached €245 million.
The scheme was launched after two notices by Labour Minister Marinos Mousiouttas were published in the Official Gazette of the Republic. Applications also opened on Friday and must be submitted electronically by September 14.
The new arrangement covers employers with overdue contributions up to February 2026 and self-employed workers with debts up to the fourth quarter of 2025.
Up to 54 monthly instalments
Under the scheme, which follows earlier arrangements introduced in 2016 and 2021, debtors can repay what they owe in up to 54 equal monthly instalments.
Those who repay their debts earlier than the full 54-installment period will benefit from a corresponding reduction in the additional charge, which can reach up to 27%.
For example, if debts are repaid in 24 instalments, debtors will be exempt from 30/54 of the total additional charge.
Minimum monthly payment
The minimum monthly instalment is €25 for debts of up to €500, €50 for debts from €501 to €1,000, and €75 for debts of €1,001 and above.
For the arrangement to remain valid, debtors must pay not only the monthly instalment but also all current contributions on time. For employers, this applies to contributions from March 2026 onwards, while for self-employed workers it applies from the first quarter of 2026 onwards.
Once applications are approved, applicants must submit a completed acceptance declaration within 15 days of receiving notification of the decision. The declaration will be sent with the approval letter.
The approval letter will also include a statement of debts and the amount of the monthly instalment to be paid. The first instalment may be paid together with the acceptance declaration or, at the latest, by the final day of the month in which the declaration is submitted. Each remaining instalment must be paid by the final day of the month to which it corresponds.
Larger payments and missed instalments
If a debtor pays more than the set monthly instalment, the additional amount will be used either to settle future instalments or to repay the total debt early.
If one instalment is late, it may either be paid together with the next instalment or the amount due may be spread equally across the remaining instalments.
The arrangement will be cancelled if current contributions are not paid on time or if an instalment is more than three months overdue.
Prosecutions to be suspended
For debtors who join the new scheme, the Social Insurance Services will not take legal action against them while the arrangement is in force.
If criminal prosecutions have already been filed, they will be suspended with the approval of the Attorney-General.
Where imprisonment or garnishee warrants are pending against debtors, these may also be suspended after the relevant actions by the Attorney-General.