Pension increases range from as little as €2 to as much as €256 per month, according to the 12 illustrative examples published by the Ministry of Labor and Social Security regarding the proposed pension reform. The greatest benefits are seen in low pensions, where increases reach approximately 50%, while for higher pensions the changes are significantly smaller.
How should the examples be interpreted?
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
The Ministry presents four income categories, taking into account different numbers of years of contribution payments. In all examples, an additional seven subsidized years of insurance coverage are factored in. The amounts show the difference between the current pension and the pension resulting from the full implementation of the reform. These increases, therefore, will not be paid in full from the first day the reform takes effect.
The largest increases are seen in low pensions. For a beneficiary with 30 years of contributions and seven years of subsidized contributions, the €411 pension increases to €577—an increase of €166 per month. With 35 years of contributions, the €436 pension rises to €655, providing an additional €219. The benefit is even greater in the case of 42 years of contributions, as the pension increases from €508 to €764, a monthly difference of €256.
For the low- to middle-income bracket, the increases amount to approximately 34%. With 25 years of contributions and seven years of subsidized contributions, a pension of €497 increases to €667—an increase of €170. For 35 years of contributions, the amount rises from €642 to €827, a gain of €185, while for 42 years of contributions, a pension of €762 rises to €976, providing an additional €214 each month.
The benefit is smaller for medium-sized pensions, with increases reaching approximately 11%. In the example of 25 years of contributions, the pension increases from €921 to €1,019, or by €98. With 35 years of contributions, the amount rises from €1,258 to €1,341, an increase of €83, while with 42 years of contributions, the pension rises from €1,524 to €1,611, an increase of €87.
For high pensions, the differences are marginal, with no reductions resulting from the Ministry’s examples. Specifically, with 25 years of contributions, the pension increases from €1,223 to €1,271—a rise of €48. With 35 years of contributions, the increase is limited to €7, from €1,706 to €1,713, while for 42 years of contributions, the €2,032 pension increases to just €2,034, a gain of €2 per month.
Why do two retirees with the same number of contribution years receive different increases?
The difference becomes particularly apparent when comparing insured individuals with 35 years of contributions and seven years of subsidized contributions. In the low-income bracket, the increase amounts to €219 per month, while for low-to-middle incomes, it is limited to €185.
For middle-income earners, the benefit is €83, and for high-income earners, just €7. This indicates that the reform does not provide for a uniform increase for everyone, but rather varies the outcome depending on income bracket and insurance data.
When will the increases be paid?
Retirees should be aware that the amounts presented by the Ministry will not necessarily be paid in full in the first year. According to the revised plan, the increases are expected to be implemented gradually over three years instead of five, with the goal of having the reform take effect on January 1, 2027. However, the bill has not yet been approved, and its final content remains under discussion.
Furthermore, the examples do not constitute personalized pension calculations, as the final amount depends on each beneficiary’s insurance history. There are also unresolved issues, such as the 12% actuarial reduction for early retirement at age 63 and the amount of the low-income pensioner’s allowance. The Minister of Labor, Marinos Mousiouttas, has clarified that the published examples will not change for the worse as a result of the current discussions, while the amounts may be updated after the legislation is passed.
