Greece 2027: measures for pensioners

The Ministry of Labor plans to reduce the fine imposed on working pensioners in order to create a fairer system, on the one hand, and reduce the so-called “black cash” on the other.

Currently, working pensioners are subject to a 30% pension deduction, regardless of the number of days worked. According to the government’s plan, the reduction will be proportional to the length of service, which will make the system more flexible and fair, in order to deter those who do not declare their employment due to lack of incentive to reduce pensions.

Bill

The intention to introduce this provision in the first bill of the Ministry of Labor in the near future was announced by the new Minister, Mr. Georgiades, who noted that that a pensioner should not be punished for choosing to continue working. The changes were supported in the pre-election period by Prime Minister Mitsotakis, who estimated that it would allow more retirees to work legally, thereby reducing menial uninsured jobs, filling vacancies and increasing government revenue.

Proportionality

The main scenario of the changes developed in the Ministry of Labor provides for the introduction of a more proportional way of calculating the “penalty”, i.e. reduction of pension by 30%, depending on the number of days worked. This is due to the fact that the majority of pensioners do not work all 25 days a month, but significantly less, and, nevertheless, the pension reduction is applied by EFKA regardless of whether they work 5 days or the whole month, a direct consequence of which is a sharp decrease in income pensioner. If a new system with more commensurate penalties is introduced, the loss of pensioner income will be much less.

What applies

Note that at present, if a pensioner works, his pension is reduced by 30%. That is, he receives 70% of both the basic and supplementary pensions. The first step towards a fairer system was the Vrutis law, which reduced the fine from 60% to 30%. But he remained horizontal for everyone, regardless of the days of work.

There is another scenario, but it is less likely to be implemented and concerns the reduction of the “fine” from 30% to 20% or even 15%.

The final decisions will be made by the new leadership of the Ministry of Labor, which will also have to decide on the use of insurance time in the employment of pensioners.

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