BUSINESS

Paper foresees major pension cuts

ROULA SALOUROU

TAGS: Finance

The social security landscape in Greece will change significantly once the bill tabled yesterday in Parliament by the Labor Ministry becomes law, as it contains reductions in pensions of over 1,170 euros per month, as well as to retirement lump sums and dividends, along with contribution hikes for workers and pensioners and permanent mechanisms for the reduction of benefits.

The draft law, which has not received the approval of the country’s creditors, has certain “traps,” even in the clauses that the government presents as “discounts.” One such case is the reduction in the social security contributions of new self-employed professionals for five years, which the government considers as “debts” that each professional will have to pay back before retiring.

The bill on the social security reform, which was made public on Tuesday, along with its submission to the competent parliamentary committee, has already generated significant reactions within Greece, with the General Confederation of Greek Labor (GSEE) and the Civil Servants’ Union (ADEDY) calling for a 48-hour strike to coincide with the voting process in Parliament. Their main objection is that while main pensions are temporarily protected, auxiliary pensions will suffer major cuts.

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