BUSINESS

Pensioners received less to get more

ROULA SALOUROU

TAGS: Finance

Thousands of retirees saw their main pensions for June reduced on Friday, as the growth that their auxiliary pensions are set to see entails the contraction of their main ones.

The Single Social Security Entity (EFKA) was forced to issue a statement on Friday to clarify why pensions were unexpectedly curtailed and to calm agitated and worried retirees. The fund explained that the cuts are due to the increase in the tax on main pensions as a result of the new auxiliary pensions to be paid out on June 2.

On Monday, June 2, 236,274 pensioners will receive their auxiliary pension that will be increased by 75.47 euros on average in pretax terms, as the €1,300 ceiling for the sum of main and auxiliary pensions per month will be abolished as of next month. This raise affects the monthly tax withheld as this is calculated according to the sum of main and auxiliary pensions.

The cuts seen on Friday were also due to the retroactive implementation of the Katrougalos law, named after a former social security minister in the previous government, which provided for withholding of €0.20 per month to support pensioners’ associations.

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