Labor and Social Security Minister Yiannis Vroutsis
The final version of the Labor Ministry bill on the new replacement rates for pensioners will lead to an increase in main pensions by 12 to 252 euros per month, Kathimerini understands.
The social security reform, which bears the personal stamp of Minister Yiannis Vroutsis, is expected to be published this week, possibly on Monday. It will then be tabled in Parliament with the aim of being voted into law by February 15.
The raises will be granted retroactively, from October 1, 2019, to about 150,000 retirees who have claimed their pension since May 2016. Although the increase concerns all new pensioners (those who retired after the Katrougalos law was introduced in May 2016), indirectly it also concerns those who retired earlier after more than 30 years of insured labor.
In practice, the replacement rates offer workers a major incentive to retire after at least 35 years of work, as the replacement rate for their main pension will grow from 33.81 percent to 37.31 percent. After 40 years of work the rate will rise to 50.01 percent, up from the currently existing 42.80 percent.
Vroutsis himself has revealed the hikes will affect almost 1 million pensioners who have completed at least 30 years of labor.