The debate in the Labor Advisory Council continued in heated tones, focusing on pension reform and, specifically, the 12% penalty. Each side takes a different approach to the actuarial reduction itself.

“This was the government’s proposal, which will cost 24 million for current pensioners and, cumulatively, approximately another 12 million over the next five years.”
_{Marinos Mousiouttas – Minister of Labor}

ΣΧΕΤΙΚΑ ΑΡΘΡΑ

08.10.2026 16:57

Mousioutta is optimistic that they will be able to deliver the expected results for the pension system

08.10.2026 12:07

Pension reform: Aim is to bring it before the Cabinet soon

READ ALSO: The government breaks it down: What the pension reform entails and who benefits the most

The government’s proposal reduces the 12% penalty for a five-year period, after which the calculation formula for early retirement—as well as for those who work until age 67—will change completely.

The new formula, illustrated with examples

For example, today an employee will receive a pension of 624 euros and has worked for 40 years. With the 12% penalty, they will receive €549.12.

With the 5-year transition period, they will receive €577.20.

But after 2032, this specific formula will be abolished, and the pension will be calculated based on the number of months worked; the reduction will depend on when the person retires.

Forty years equate to 480 months of work.

At age 63, the multiplier will be 1.10, so the person will receive €528

At age 64, the multiplier will be 1.20, resulting in €576;

At age 65, the multiplier is 1.30, resulting in €624

At age 66, the multiplier will be 1.40, resulting in €672; and at age 67, the multiplier will be 1.50, resulting in €720.

The multiplier provided is based on 2024 values; therefore, it is not fixed but will be adjusted each time based on a decision by the Council of Ministers.

SEE ALSO: A Critical Turning Point for Pensions: Relief Measures, the Five Vulnerable Groups, and the “Cap” on Costs

They’re asking for the cost

“Tell us what to change from what we’ve proposed”—without knowing the financial data, simply hearing scattered numbers isn’t particularly constructive.”
_{Sotiroulla Charalambous – General Secretary of PEO}

“Unfortunately, it appears that, given the current state of affairs, the next generation of retirees the next generations will be called upon to contribute to supporting this effort in a disproportionate manner.”
_{Andreas Matsas – General Secretary of SEK}
“However,
if the investment policy outlined in the draft legislation does not yield results, the possibility of increasing contributions is clearly left open.”
_{Stelios Christodoulou – President of DEOK}
“We
believe that this group, which is required to retire earlier, should not be burdened with the 12% cost.”
_{Stratis Matthaiou – General Secretary of PASYDY} “Some proposals are

being put forward that would drive up costs, even if they include a provision that is only potential for the future.”
_{Lena Panagiotou – Assistant General Director, OEB} “Once

we have all the data before us—and especially the financial data we’ve been requesting since the beginning of this process—we’ll be able to be substantive.””
_{Philokypros Rousounidis – Secretary General of KEVE}

The Minister of Finance will attend the upcoming sessions of the Labor Advisory Council to clarify the unclear aspects of the costs.

Watch the report by Kleio Vourkou: