Basic details of the pension reform were referred to yesterday by the Minister of Labor, Marinos Mousiouttas, in the context of the Ministry's report for 2025 and the planning for 2026.
Presenting the six strategic goals of the Ministry of Labour for 2026, Mr. Mousiouttas described the pension reform as the "crown" of the Ministry's planning for the current year, while he also referred to other important issues of the labour market.
In particular, the six strategic goals of the Ministry of Labour for 2026 are: (1) Completion of the Pension Reform, (2) faster response to the needs of citizens, (3) better terms and conditions of work, (4) expansion of support for working parents, (5) effective tackling of undeclared and illegal work, and (6) continuous investment in lifelong learning and human capital development.
Reform is a bet
Regarding the pension reform, which is also the Ministry's big bet for 2026, Marinos Mousiouttas stated that: The "Basic Pension" is introduced, which replaces the minimum and social pension, while maintaining the contributory nature of the Supplementary Pension. Furthermore, a relief of the actuarial reduction for early retirements at the age of 63 (12% penalty) is provided. A key element of the reform is the recognition of subsidized contributions for new entrants to the labour market, informal caregivers, uninsured mothers and people with disabilities, while the possibility of paying contributions by income earners is added.
Regarding the amount of the new basic pension that will be created, the General Director of the Ministry, Stelios Chimonas, noted that the basic pension will certainly be below €1,088, based on the data processed by the actuary. "We are giving the maximum possible, without disturbing economic balances," he added, with the Minister noting that the amount to be announced will be in line with the capabilities of the Fund. He also reiterated that the largest percentage increase will be recorded in the lowest pensions.
Management: For the transparency and effective management of the Fund, Marinos Mousiouttas stated that the state borrowing from the Social Security Fund is terminated and an Independent Supervisory Authority is created and a separate account is established, to which the surpluses and the repayment instalments of state debts will be transferred directly.
Investment policy: The discussion is taking place with the consent of the Ministry of Finance and is expected to enter the final stretch in the near future. Regarding the repayment of the state's debt to the Fund, he noted that the formula that will be used will be such "that the money comes to the Fund but also that the general economy is not at risk". "Any (investment) actions must be done very carefully, to ensure the independence of the body, its meticulous supervision and the investments not to be of great risk, so that we can preserve this money as the apple of our eye."
Reserve: The reserve of the Social Security Fund is a huge portfolio, said Mr. Mousiouttas. Giving data on the situation of the Fund in 2024, he said that contributions have increased to 592.189 from 580.023 in 2023, with a significant increase in contribution revenues, which in total exceed €2.7 billion, strengthening benefits to beneficiaries, reaching €2.06 billion, while in 2024 a large increase was recorded in the annual surplus of the Fund, around €290 million.
In India for Foreign Workers
Regarding the agreements with third countries for the import of labour, after the renewal of the agreement with Egypt, the Minister of Labour referred to the upcoming visit of the President of the Republic to India, noting that the issue is on the agenda and there may be some agreement on the issue. He added that in 2025, 11.594 new approvals were given for the employment of foreigners and 9.924 renewals. He pointed out that there are currently a total of 41.612 approvals, while the total active contracts amount to 30.884, as not all approvals have been utilized.
