Depending on the number of years and the amount of each employee’s contributions to the Social Security Fund, the increase each retiree will receive as a result of the reform will vary.
Actuaries from the International Labor Organization, whose contribution was crucial, provided the 18 most common examples.
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For low-income individuals with 15 years of paid contributions, 4 years of subsidized contributions, and no points in the supplementary portion, the current pension amounts to 411 euros. Under the reform, the final plan calls for a 40% increase, bringing the pension to 577 euros.
Individuals with 30 years of contributions and 7 years of subsidized contributions, who currently also receive 411 euros, will see a 50% increase and will receive 655 euros over a five-year period.
For 35 years of paid contributions and 7 years of subsidized contributions, retirees will go from 436 to 702.
For those with 42 years of paid contributions, their pension will rise from 508 to 764.
For individuals with low-to-middle incomes and 25 years of paid contributions, the amount will increase from 497 to 666.
With 35 years, the amount will increase from 642 to 827, and with 42 years, from 662 to 976.
Individuals with middle-income levels and 25 years of paid contributions will receive 767 from 618, and with 35 years, 998 from 847.
These examples also apply to those with higher incomes, where the percentage increase is lower.
For workers with average earnings and 42 years of paid contributions, the increase is 17%, rising from 1,016 to 1,188.
For those with 25 years of paid contributions and middle-to-high earnings, the pension will rise from 921 to 1,019.
With 35 years, the pension will rise from 1,258 to 1,341
. With 42 years, it will rise from 1,524 to 1,611.
For those with high current earnings and 25 years of contributions, the pension is currently 1,223 and will rise to 1,271.
With 35 years, it will go from 1,706 to 1,713
; with 42 years, from 2,032 to 2,034
. Meanwhile, for those with very high earnings and 25 years of paid contributions, the increase will be 5 percent; from 1,525, they will receive 1,595
. With 35 years of service, from 2,129, 2,168; and with 42 years, from 2,540 to 2,580.
Pensionable earnings will also be recognized for new population groups for specific periods.
“Families provide unpaid care for the elderly or relatives; people with disabilities may not have equal opportunities for continuous social security coverage; young people are studying longer and entering the labor market later. The reform specifically recognizes these realities.”
Marinos Mousiouttas – Minister of Labor
“There will be a burden on public finances in the range of 50 million each year for the first five years, while at the same time the government’s borrowing from the Social Security Fund will come to an end.”
Kostas Stavrakis – Chief Actuary of the International Labour Organization
At the same time, the bill will require high-income earners who have no other social security obligations to contribute to the Fund. This category includes citizens of the Republic of Cyprus, European Union countries, and third countries who derive income from public office, dividends, interest, rent, copyright or patent royalties, as well as fees or other profits from property.
See the report by Kleio Vourkou:
