Pensions: Who will receive a double and triple increase – Examples

By Chrysostomos Tsoufis

A 13th pension – or in some cases a large part of it – brings in hundreds thousands of pensioners the nexus of government interventions.

Let’s be a pensioner who receives a pension of €780. Assuming that after the unfreezing of increases in pensions, the increase for 2023 is 7% (extremely possible possibility since growth this year will definitely be above 5% and inflation is expected to close around 9% and the increase results from 50% of their sum) then the his pension will increase to €834.6. In other words, he will have a monthly benefit of €54.6 and an annual benefit of approximately €655. We are already at 84% of the 13th pension. This particular pensioner will also receive the €250 accuracy check just before Christmas, so his total benefit will be €905, i.e. higher than a full pension (compared to 116%).

Even a pensioner who will not receive accuracy check, again it benefits almost a pension. For example, a pensioner of €930 with a 7% increase will see his pension go to €995. In other words, he will have a monthly benefit of €65 and an annual benefit of €780, approximately 84% of the 13th pension.

In yet higher pensions the benefit of abolishing the solidarity levy is also added. Let’s take for example a pensioner of €1200. With a 7% increase, his pension rises to €1284, that is, he has a monthly benefit of €84 and an annual benefit of €1008. With the abolition of the solidarity contribution, his annual benefit rises by €44 to €1052, i.e. 88% of the 13th pension.

If the same pensioner is an old pensioner – before May 2016 – with more than 30 years of insurance, then he will also be entitled to the 4th retroactive installment due to the recalculation of his pension under the Vroutsis Law. In this particular case, an additional 13/month should be added to his pension, i.e. it will go to €1297.

Total annual benefit from principal increase, abolition of contribution and 4th retroactive installment of €1208, i.e. more than an entire pension.

CAUTION: All the above examples concern pensioners who are not followed by a personal difference. For those who have personal difference the benefit from the increase in the main pension and from the 4th installment of retrospectives it will be accounting until it is zero so that the increases can then be seen in the pocket. On the contrary, the €250 of the punctuality check and the increase in wages from the abolition of the solidarity contribution are not affected by the personal difference.

A pensioner of €820 with a personal difference of €89, with the 7% increase will not see any difference in his pocket. Simply, his personal difference will drop to €32.

However, according to the Minister of Labor Kostis Hatzidakis almost 9/10 retirees (87% to be exact) will see real increases in their pocket. If the effect of the €250 check and the 4th installment of the retroactive recalculation are added, the percentage increases even more. For example, of the 850,000 pensioners who have a personal difference, 500,000 will see an increase in their earnings due to the abolition of the solidarity levy.

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