Pension increases will range from 5% to 55%, depending on the specific circumstances of each case, said the Minister of Labor and Social Security, Marinos Mousiouttas, in remarks to Parliament.

Mr. Mousiouttas had attended the Parliamentary Committee on Labor to provide an update and exchange views with the committee members. Speaking to reporters afterward, the Minister outlined the key pillars of the pension reform, a topic that was the primary focus of the discussion with the Members of Parliament.

At the same time, describing the discussion with the Committee members as “constructive,” he said that policy regarding foreign workers and a possible increase in maternity, parental, and paternity leave were also discussed.

Pension Reform

The Minister reiterated that discussions with the social partners on pension reform are expected to be completed shortly, noting that the draft legislation for the first pillar will be submitted to the social partners within the next fifteen days.

At the same time, he said, the bill will also be released for public consultation so that discussions with the social partners and parliamentary parties can take place over the summer, so that when Parliament reconvenes, the bill can be submitted and debate can begin in the relevant parliamentary committee.

“The goal is for the new pension system to be implemented by January 1, 2027,” he said.

Outlining the features of the new system, Mr. Mousiouttas said it will include pension increases, the introduction of new contribution groups, and the allocation of insurance units to mothers, people with disabilities, informal caregivers, and students seeking employment after graduation, in order to increase their final pension.

When asked to give examples of pension increases, the Minister said that an insured person who currently receives a pension of €504 per month will receive €750 under the new system—an increase of approximately 50%.

Another person with the same characteristics, who currently receives a €504 pension plus an additional €220 from the “supplement,” will see their pension rise to €750, while the supplement will be reduced to €110, resulting in their total income increasing from €720 to €830.

“There will be increases for everyone ranging from 5% to 50–55%. Some will receive more, some will receive less, but everyone will see increases in their pensions,” he said, clarifying that the percentage will depend on the number of years of insurance coverage, the amount, and the frequency of contributions.

When asked about the new category of contributors, the Minister said that individuals who currently receive a social pension but have income from rent, stocks, or other sources will be required to pay contributions to the Social Insurance Fund.

Individuals who already pay contributions to the Social Insurance Fund will not be subject to this requirement, but may pay additional contributions on a voluntary basis to increase their future pension.

The retirement age remains at 65, and no increase in contributions is planned.

Regarding the 12% actuarial reduction (penalty), the Minister said it will be reduced, further increasing the pensions of those affected.

Referring to “Pillar Zero,” he said that citizens will submit a single application for a pension and social benefits and will receive a single payment into their account, rather than having to contact different agencies.

Regarding the second pillar (Provident Funds), the Minister noted that there are still differences of opinion, but he expressed optimism that an agreement will be reached by September, with implementation to follow 3–4 years later.

Regarding the Social Insurance Fund, the Minister reiterated that the government will gradually repay, with interest, the approximately €12 billion it has borrowed from the Social Insurance Fund.

Extension of Paternity and Parental Leave

The Minister noted that, following the pension reform, priority will also be given to labor issues.

“We are in the process of extending parental leave and paternity leave,” he said.

DIKO MP Andreas Apostolou noted that the government intends to introduce a bill to extend paternity leave to four weeks, while proposals are also expected to support parents with children who are hospitalized or facing serious health problems.

Source: KYPE