BUSINESS

New retirees suffer big cuts

ROULA SALOUROU

TAGS: Finance

A circular issued on Thursday by the Labor and Social Security Ministry opens the way for the long-anticipated payment of outstanding pensions but also provides for an average cut of 15-20 percent to the pensions of those who retired after May 13, 2016, when the new legislative framework cleared Parliament.

Despite the small bonus (between 3 and 5 percent) coming from the calculation of pensions using the Consumer Price Index instead of a mathematical formula, the cuts are considerable for those 55,000-60,000 retirees, and in some cases reach up to 35 percent.

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