PENSIONS - INCREASES FROM €2 TO 50% - EXAMPLES FROM THE MINISTRY OF LABOUR - Filenews 15/10 by Angelos Angelodimou
Increases in pensions, which will reach up to 50%, are foreseen after the completion of the pension reform, as it has been formulated to date.
The Ministry of Labour proceeded with paper exercises, regarding the changes that will occur in pensions, in an effort to give a clearer picture to current and future pensioners. The examples have been formulated with 2024 prices and concern both high and low incomes.
In the tables prepared by the Ministry of Labour, both the years of contributions and the subsidized ones are taken into account. As he emphasizes, all pensioners will see increases in their pensions, even if they are subtle. A typical example is given by the Ministry for a pensioner with an income of more than €2,000, who will receive an increase of €2. On the other hand, low-income pensioners will receive increases of up to 50%.
Indicatively, using 2024 prices, the Ministry of Labour records specific examples of the increases that will occur with the full implementation of the reform. With 30 years of contributions and 7 subsidies, a pensioner, who received 411 euros, will get 577 euros with the full implementation of the reform. This means in three years, according to the latest decisions of the Ministry.
In the examples referring to high incomes, a pensioner, who received 1,223 with 25 years of contributions and 7 subsidized pensions, will receive 1,271 euros after the reform. A two-euro increase will be received by those who received 2,032 euros with 42 years of contributions and 7 subsidized ones.
It is recalled that the meetings of the Labour Advisory Board are now held twice a week, with the aim of completing the whole process as soon as possible and the pension reform being implemented on 1.1.2027. Speaking after the last session of the Labour Advisory Body, the Minister of Labour announced three changes to the pension reform bill:
(a) Return of increases in pensions over a three-year period instead of five years.
(b) Extension of the transitional period from five to fifteen years.
(c) Improvement of the conditions for widow's and disability pensions.
In detail, the tables of the Ministry of Labour:
(1) For low incomes, increases of up to 50% are foreseen. For 30 years of contributions and 7 subsidized ones, a pensioner with €411 will receive €577. With 35 years of contributions and 7 subsidized ones, from €436 he will receive €655. With 42 years of contributions, from €508 he will receive €764.
(2) For low to middle incomes, the increases reach up to 34%. With 25 years of contributions and 7 subsidized ones, the pensioner will receive €667 from €497. With 35 years of contributions and 7 subsidized ones, from €642 he will receive €827. With 42 years of contributions and 7 subsidized ones, from €762 he will receive €976.
(3) For middle incomes, the increases will reach up to 11%. A pensioner with 25 years of contributions and 7 subsidized pensions, from €921 will receive €1019. With 35 years of contributions and 7 subsidized ones, from €1258 he will receive €1341. With 42 years of contributions and 7 subsidized ones, from €1524 he will receive €1611.
(4) Finally, for high incomes, what is noted is that no pension is reduced. In particular, with 25 years of contributions and 7 subsidized ones, the pensioner will receive €1271 from €1223. With 35 years of contributions and 7 subsidized ones, from €1706 he will receive €1713. Finally, with 42 years of contributions and 7 subsidized ones, from €2032 he will receive €2034.
