The pension reform planned by the Ministry of Labor extends through 2031, following the submission of the relevant bill to the House of Representatives, and is expected to bring about sweeping changes to pension amounts and an increase in the Social Insurance Fund’s revenues.

Speaking on the Alpha News program, Labor Minister Marinos Mousiouttas explained that the pension reform provides for the “merger” of the pension and the so-called “small check” received by low-income pensioners, which is funded by the Deputy Ministry of Social Welfare. From now on, beneficiaries will receive a single payment. At the same time, he clarified that pension increases will be implemented gradually:

• 40% in the first year
• 20% over the next three years

“Every case is different. A retiree who currently receives a €500 pension and had worked for 49 years at a low wage with a total annual income of €11,000—that is, 800–900 euros per month. Under current rules, they will receive a pension of €700—an increase of nearly 50% from what they receive today. A person in a similar situation who also received a €500 pension but qualified for the low-pensioner program received an additional €220 as a small supplement. Under the new regulation, his pension will rise to around €830. The difference, however, does not come from the Fund, but from the fact that he was eligible for the small supplement.”

Mr. Moussiouttas explained that the increases will be granted accordingly, depending on whether contributions were fixed or periodic, and actuarial factors will be taken into account.

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