What is I.K.A.?
I.K.A (The Institute of Social Insurance) is the only compulsory insurance required under building contracts in Greece.
I.K.A avoidance is a national passtime in Crete, with many builders not registering the names of all (and in some cases any), of the operatives working for them.
A building operative’s eligibility for unemployment benefits, health care and pension rights will depend on the number of years they have worked, and the number of stamps (or ‘Ensima’) they have collected.
Who is responsible for its payment?
As the (indirect) Employer of the building workers on your property, you are responsible for I.K.A payments, although in practice these are paid monthly by the Contractor. This is a complex topic, and in my opinion, it is worth consulting, and paying, your Architect/Engineer for advice, and to complete the I.K.A. paperwork on your behalf.
How is it calculated?
I.K.A liability is assessed by your local I.K.A office based on the drawings submitted for Planning Permission. This is based on a number of minimum labour constants, e.g. ‘X’m3 of reinforced concrete will take ‘Y’ man hours/days to instal, at a labour constant of ‘Z’ Euros.
IKA contributions can add about 9% to the cost of construction work in Crete.
Non complaince with IKA Regulations
There are three main consequences of non compliance with I.K.A Regulations:
- punitive fines can be levied for incorrect filing and payment of I.K.A,
- the Electricity Company (DEH) may refuse to make a permanent connection to your property without certified proof that all I.K.A payments have been made, and
- you will not be able to re-sell your property without the stamped Final I.K.A. Certificate
Proof of payment
The local I.K.A office will provide receipts confirming the date and value of each I.K.A payment.
YOU MUST INFORM THE LOCAL I.K.A OFFICE WHEN WORKS ON SITE ARE COMPLETE