Introduction
The Regulation of Overdue Social Insurance Contributions (Amending) Law of 2026 [Law 79(I)/2026], amending the regulatory framework established under the predecessor scheme of 2021, has come into force, a piece of legislation that provides relief to thousands of employers and self-employed people with accumulated debts to the Social Insurance Fund. The regulation forms part of a broader policy of restructuring overdue obligations to the State, aimed both at strengthening collectability and at providing liquidity relief to debtors.
Scope of Application and Beneficiaries
The new regulation enables employers and self-employed people who have debts to the Social Insurance Fund, as well as to other funds whose collection is administered by the Social Insurance Services, to repay their overdue contributions in instalments. For employers, debts up to and including February 2026 are considered overdue, while for self-employed persons, debts up to and including the fourth quarter of 2025 are considered overdue. This differentiation reflects the different payment cycles — monthly for employers, quarterly for the self-employed.
Repayment Terms and Financial Incentives
Interested parties may settle their debts in up to 54 equal monthly instalments. The extended repayment period, reaching four and a half years, constitutes a substantial concession and makes participation viable even for debtors with a significant volume of obligations.
Beyond instalment repayment, the law introduces significant financial incentives for early settlement. A reduction of the additional charge — that is, the statutory surcharge or penalty imposed on the overdue principal, not a reduction of the principal debt itself — is provided for those who choose to repay earlier, with the discount rate able to reach up to 27%. In the case of lump-sum settlement, a full exemption from the additional charge is provided.
The graduated incentive structure is consistent with established legislative techniques aimed at accelerating voluntary compliance while preserving accessibility for debtors unable to make a lump-sum payment. The full exemption from the additional charge upon lump-sum settlement may, in cases of long-accumulated debts, translate into savings of many thousands of euros.
It is noted that participation does not exempt the debtor from the obligation to meet their current insurance obligations; default entails the automatic forfeiture of the right to instalment payment.
Suspension of Criminal Prosecutions and Enforcement Measures
Perhaps the most significant dimension of the law is found in its provisions regarding the suspension of measures of a criminal and enforcement nature. Criminal prosecutions that have already been filed may be suspended, subject to the approval of the Attorney General of the Republic, while under certain conditions imprisonment warrants or seizure/attachment warrants may also be suspended.
This regulation carries weighty practical and doctrinal significance. First, the suspension of criminal prosecutions does not occur automatically by virtue of entering the regulation but is subject to the approval of the Attorney General — ensuring compatibility with his constitutionally enshrined competence over criminal prosecution (Article 113 of the Constitution). Importantly, this approval mechanism means there is no absolute right to suspension; it remains a matter of the Attorney General’s discretion and is not guaranteed upon mere entry into the scheme. Second, the possibility of suspending imprisonment and seizure/attachment warrants protects the debtor from the simultaneous application of coercive measures during the repayment period, restoring a proper balance between the public interest and individual rights.
Application Submission Procedure
Applications have already been made available on the electronic platform of the Social Insurance Services and must be submitted electronically by 14 September 2026 through the Social Insurance Services – Debt Regulation portal. The deadline is absolute, and its lapse results in the loss of the right to inclusion.
Conclusions
Law 79(I)/2026 provides debtors with a substantial, but time-limited, opportunity to settle their obligations under particularly favourable terms. The combination of up to 54 instalments, a discount of up to 27% on the statutory surcharge, and the possibility — subject to the Attorney General’s discretion — of suspending criminal prosecutions, makes the regulation a valuable tool for legal and financial rehabilitation. Every affected employer or self-employed person should give serious consideration to utilising this opportunity before the September deadline.
Author:
Ioanna Efstathiou
Trainee Lawyer