Pension increases with the bull

By Chrysostomos Tsoufis

Pension increases with the bull. Kostis Hatzidakis and Theodoros Skylakakis signed the relevant MOU and thus from January 1 the pensions of 1.7 million pensioners are increasing. According to the Ministry of Labor, 80-85% of them will receive the entire increase of 7.75%.

The vast majority of the rest will receive an increase of more than 7% depending on the amount of personal difference they have. About 900,000 retirees will not see an increase due to a large personal difference, but will see their difference decrease and be in a better position for increases in the following years.

The amount of increases is determined by the amount of inflation and growth (half of their sum), figures that will be finalized in the Spring. Any differences that will arise between the final figures and the budget assumptions on the basis of which the increases are given, will be taken into account in the calculation of the increases for 2024.

A pensioner who receives €850 per month net, with the application of the 7.75% increase, the monthly benefit he will have will be approximately €66, while the annual €792, he will earn almost an additional pension (93%).

The increase in pensions is the main but not the only boost to pensioners’ pay.

On December 20, approximately 1.2 million pensioners received their €250 accuracy check.

In addition, with the January pensions, 912,000 pensioners saw more money in the ATM due to the abolition of the solidarity levy and 232,000 with more than 30 years of insurance saw their benefits withdrawn as the 4th of the 5 total increases of the Vroutis law was paid.

It becomes clear from the above that too many pensioners will see a pension increase from 2 sources and fewer from 3. For example:

A pensioner receives €750 a month. With the application of the 7.75% increase, the monthly benefit he will have will be approximately €58, while the annual benefit will be €696. However, he is also entitled to the extraordinary aid of €250 as his pensionable earnings do not exceed €9,600 per year. Cumulatively, his benefit amounts to €946, far exceeding an additional pension (135%).

Pensioner of €514 with the application of the 7.75% increase, his monthly benefit will be €40 and the annual benefit will be €480. Due to his low income (below €9,600) he also received the €250 aid.

However, because he submitted a pension request before May 2016, and has more than 30 years of insurance, he will receive an additional increase of 2.83% due to the 4th annual increase provided for in Vroutsis based on the improved replacement rates, i.e. an additional €174/year . The sum of the three increases gives an annual benefit of €904, much higher than a pension (168%).

According to the calculations of the Ministry of Labor

94.6% of retirees will get at least 1 raise
1/2 will receive a 2x increase
1/2 will receive at least one additional pension
83% of those with a large personal difference will also see increases through the abolition of the special solidarity levy and the payment of the €250 subsidy.

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