Finally Social Security Funds Are Growing

Finally Social Security Funds Are Growing.Repayment of debts to the social security funds is only allowed for those with small debts, amounting to less than 10,000 euros. Meanwhile, individuals and businesses with larger debts continue to burden the social security system, accumulating even greater liabilities. In the first quarter of 2023, debts owed to the Social Security Debt Collection Center (KEAO) surged by 255.6 million euros, reaching a staggering total of nearly 46 billion euros.

Finally Social Security Funds Are Growing

According to KEAO’s first quarterly progress report for 2023, the total outstanding insurance debts at the end of March amounted to 45.9 billion euros. This increase was primarily driven by additional fees and surcharges, which contributed 393.5 million euros, while the original debts saw a decrease of 137.9 million euros.

The quarterly report from the Parliament Budget Office noted that, on an annual basis, the number of debtors decreased by 130,369 individuals. As a result, the total number of debtors to social security funds stood at 2,293,204 by the end of March.

The reduction in the number of debtors primarily stemmed from individuals with debts falling within the range of 50 to 10,000 euros. These debtors demonstrated an ability to keep their debts relatively low, up to the 10,000 euro threshold, and sought to enter into repayment plans to fulfill their obligations.