ECONOMY

Hundreds of thousands of pensioners are in for raises

hundreds-of-thousands-of-pensioners-are-in-for-raises

The Labor Ministry is set to fully overhaul the country’s pension system next month, as the social security reforms it is promoting will increase some 450,000 main and auxiliary pensions. The final number of recipients and the size of the hikes will be determined by the necessary study for the ministry by the National Actuarial Authority.

Sources say that the increase will apply retroactively from October 4, 2019, to the pensions of some 60,000 pensioners who have received their main pension after May 2016, due to changes to replacement rates. That will not concern all pensioners, but only those with over 30 years of insured labor, as the ministry is planning an increase to the replacement rates for the period from the 30th or the 33rd year of labor up to the 42nd.

Main pension hikes could average 60-70 euros per month, while 400,000 auxiliary pensions will rise by an average of 99.5 euros.