Increases of up to 50% for low-income retirees are projected in the Ministry of Labor and Social Security’s illustrative examples regarding pension reform. The largest increases are seen in the lowest pension brackets, while the higher the pension amount, the more limited the benefit from the proposed changes.
According to data presented by the Ministry, increases of up to 50% are projected for the low-income category. Specifically, a pension of €411 with 30 years of contributions and seven subsidized years increases to €577, while a pension of €436 with 35 years of contributions and seven subsidized years rises to €655. Similarly, for an insured person with 42 years of contributions and seven subsidized years, the pension rises from €508 to €764, resulting in a monthly benefit of €256.
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In the low-to-middle-income bracket, increases reach up to 34%. A pension of €497 with 25 years of contributions increases to €667, while for 35 years of contributions, the pension rises from €642 to €827. For an insured person with 42 years of contributions, the current pension of €762 increases to €976. All examples take into account seven subsidized years.
The increases projected for middle-income earners are smaller, with the rate reaching up to 11%. Specifically, a pension of €921 with 25 years of contributions increases to €1,019, while a pension of €1,258 with 35 years of contributions rises to €1,341. In the case of 42 years of contributions, the pension increases from €1,524 to €1,611. In these cases as well, the examples include seven subsidized years.
For high earners, the increases are limited, though no reduction in existing pensions is anticipated. Specifically, a pension of €1,223 increases to €1,271, a pension of €1,706 rises to €1,713, while a pension of €2,032 increases by just two euros, reaching €2,034. As noted during the presentation of the data, “No pension is being reduced, ladies and gentlemen. We simply recognize that for high-income earners, the changes are not very significant.” At the same time, it was emphasized that “The goal was to implement pension reform to help low-income pensioners and those with middle-income pensions.”
It should be noted that the amounts are illustrative examples based on 2024 prices and reflect the full implementation of the reform. This means that the increases will not be implemented all at once, but gradually, over the course of several years, in accordance with the reform’s plan.
