Newsroom
Pensioners would receive their full increases sooner, and people who get a better pension under the current rules would keep those rules for longer, under changes announced Monday by Labor Minister Marinos Mousiouttas.
The changes are confirmed parts of the government’s revised proposal, but they still need Parliament’s approval.
The first change means a shorter wait for the extra money. Pension increases would be introduced over three years instead of five: 30% of the increase in the first year, another 30% in the second and the remaining 40% in the third.
For example, someone entitled to an extra €100 a month would receive €30 more in year one, €60 more in year two, and the full €100 more in year three. This is an example of how the payments would work—the minister has not announced how much each person would receive.
That means the full increase would arrive two years earlier than originally planned, although pensioners would still have to wait for the whole amount.
The second change gives people longer protection if the old rules suit them better. For a 15-year transition period, rather than five, the existing system would apply where it gives a current or future retiree a better pension.
That could reassure people nearing retirement who worry about losing out when the rules change. Details of how the two calculations would be compared have not yet been explained.
The third change concerns widowhood and disability pensions. Mousiouttas said the conditions would improve but did not explain exactly what would change or who would benefit.
The government wants the new system to start on Jan. 1, 2027. For that to happen, Parliament must pass the bill before the end of this year.
Talks with unions and employers are continuing, and further changes remain possible. For now, the proposal promises pension increases sooner and longer protection against losing out—but people still need the final details to know how much more they would receive and whether their contributions would change.
