The government is entering the final stretch toward implementing the pension reform, setting January 1 as the target date for its implementation and February 1 for the payment of the first increases to beneficiaries. Appearing on the program “Alpha News,” the Minister of Labor and Social Security, Marinos Mousiouttas, analyzed the timeline, the financial data, and the parameters of the bill, which is already before the social partners.
The total cost of the package is expected to reach 500 million euros over a six-year period (approximately 75 million euros per year), with Mr. Mousioutta emphasizing that the government’s proposal is based on rigorous actuarial studies.
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“This proposal took into account the sustainability of both the Social Security Fund and public finances, so as not to disrupt economic indicators.”
As he explained, the distribution of the increases was restructured to 30% in the first year, 30% in the second, 10% in the third, 10% in the fourth, and 20% in the fifth year, so that retirees can immediately see a substantial difference in their income.
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Particular emphasis is placed on supporting low-income pensioners and boosting the basic pension for those who worked for many years at low wages. Clarifying the situation regarding the low-pensioner allowance (the so-called “small check”), the Minister emphasized that “No one will receive less.”
He also pointed out that 40% to 45% of retirees will receive an increase of at least 100 euros, while approximately 8,000 people will see increases exceeding 250 euros over a five-year period, not counting the impact of the ATA.
Responding to concerns raised by employers’ organizations about the possibility of future contribution increases, Mr. Mousiouttas noted that the initial proposal for a 5% cut in high pensions was rejected on constitutional grounds. Instead, a new actuarial study is planned for 2031–2032 to evaluate the pension funds.
“We are ensuring that pensions will be as we have stated. If there is any problem, we will have to look at the contribution figures,” he noted, while expressing his optimism that common ground will be found through dialogue.
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Finally, the reform introduces government subsidies and contribution credits for vulnerable groups, informal caregivers, mothers, and young workers, with the aim of gradually reducing the gender pension gap (which currently stands at 29%).
Regarding the contentious issue of the 12% actuarial reduction for early retirement at age 63, the Minister stated that the unions’ proposals are currently being costed and will be put up for discussion at the upcoming meeting of the Labor Advisory Council.
