Four critical issues concerning pensioners’ income, plus one of interest to wage earners, are being resolved in the coming weeks and put into place by the end of the year. It is about finalizing the increases that will be given to pensions, solving the problem that has been created with the solidarity contribution of pensioners, issuing the decision of the Supreme Court on retroactives, as well as strengthening the income of low-pensioners and vulnerable groups. At the same time, the new reduction by one percentage point of insurance contributions was finalized and will be implemented from the beginning of the year.
The last two issues are included in the tax bill of the Ministry of Finance, while it is expected to include an amendment for the changes to the Pensioners’ Solidarity Contribution.
- Pension increases: The adjustment of the pensions will take place at the end of December and will concern the January pensions. It is estimated that the final increase will be around 2.4%, while recently the Minister of Labor Mrs. Niki Kerameos reiterated the official government position for an increase between 2.2% and 2.5%. The decision is expected by the end of November, with the minimum pension adjusted to 436.3 euros from 426.17 euros today. If – finally – the increase is determined at 2.4%, pensions of 500-600 euros will increase up to 15 euros per month, pensions of 1,000-1,500 euros an average of 30 euros per month, while high pensions of 2,000-3,000 euros from 50 to 75 euros monthly
- Pensioner Solidarity Contribution. Legislation which will ensure that the scales of the solidarity contribution will be adjusted at the same rate that pensions are adjusted annually, so that pensioners receive their pension normally without seeing reductions.
The amendment to be incorporated into the tax bill is expected to be voted on within the month to be implemented with the January 2025 pensions to be paid at the end of December.
The new architecture of the EAS provides that as the annual pension increases, the threshold of each level of the Solidarity Contribution will correspondingly increase, so that no one has a reduction and they fully benefit from the increase.
We remind you that up to now the EAS withholdings have resulted in many cases in zero increases, and even in the reduction of pensions for pensioners with pensions of more than 1,400 euros who were at the limits of the scales. The change is expected to benefit around 12,000 pensioners, who will receive the entire 2025 increase, since no one will change EAS brackets to have a higher reservation.
- Retrospectively. Within November, the decision of the Supreme Special Court is expected to be made public on the payment of retroactive benefits to 370,000 pensioners who have appealed to the Court, they will immediately receive their 13th and 14th pensions (Christmas-Easter gifts, summer allowance), as well as the cuts in supplementary benefits the pensioners. The decision will only concern the eleven months June 2015 – May 2016 and not the total period for which they have appealed. It is estimated that the amount of the refund – at most – will reach 4,000 euros and the total cost reaches 750 million euros. The government has not decided whether the money will be returned in installments, nor whether any positive decision will be extended to those who did not file appeals.
- Emergency support for pensioners and the vulnerable. The tax bill includes financial support for the following categories: Pensioners with a personal difference of more than 10 euros will receive (until December 31, 2024) 200 euros for a pension up to 700 euros, 150 euros for a pension from 700.01 euros up to 1,100 euros , 100 euros for a pension from 1,100.01 euros up to 1,600 euros. An extraordinary financial aid of 200 euros will also be given to vulnerable social groups, such as beneficiaries of e-EFKA disability allowances, beneficiaries of the absolute disability allowance, beneficiaries of the sickness and incapacity allowance of State pensioners, beneficiaries of the non-institutional allowance, beneficiaries of the OPECA disability allowance, to uninsured seniors.
Especially the beneficiaries of the OPEKA child allowance will receive an additional installment, while an additional 50% of the monthly allowance will be given to the beneficiaries of the minimum guaranteed income.
Salary increase with contribution reduction
With a separate provision, incorporated into the tax bill, the reduction of insurance contributions by an additional percentage point, equally for employers and employees, is promoted. The reduction is to be made through the health contributions paid by both sides. This means that from 1.1.2025 the insurance contributions, from the current 36.16%, will drop to 35.16%. The reduction will benefit both employers (through a further reduction in non-wage costs) and private and public sector workers through an increase in their net earnings.
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