ECONOMY

Changes to pensions, social security to come into effect

changes-to-pensions-social-security-to-come-into-effect

A series of reforms voted through over recent months are to come into effect this year, cutting the pensions of new retirees and securing small increases for others, while 1.4 million pensioners are to see their monthly payments unchanged.

A vote in Parliament in December averted planned cuts to pensions that had been due to come into effect this month. But other measures introduced by the leftist-led government, including the recalculation of pensions under the so-called Katrougalos law and changes to the social security contributions paid by self-employed professionals, are to have an impact over the coming months.

While 620,000 Greeks are to enjoy increases in their pensions, new retirees are to see the payments they expected to receive reduced by more than 20 percent.

Meanwhile a total of 1.5 million unsalaried workers are to experience changes in their social security contributions, with notifications of the cuts or hikes to be sent out next month.

Salaried workers are also expected to see changes in their pay packets as a much-vaunted increase to the minimum wage is expected to be signed in mid-January.

A series of rulings by the Council of State (Cos), the State Audit Council and other courts deeming as unconstitutional a succession of cuts to civil servants’ pensions over the years are also expected to come into effect in 2019, paving the way for thousands of former public sector workers to be compensated.

Another ruling, by the CoS, is expected next month on appeals by active civil servants against cuts to holiday bonuses that have been carried out over the years.