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Monday, January 30, 2023
HomeEconomyThe payment of increases to 1.7 million pensioners begins - The differences...

The payment of increases to 1.7 million pensioners begins – The differences in pensions with examples

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The government supports pensioners in practice, emphasizes the Minister of Labor and Social Affairs Kostis Hatzidakis

The payment of pensions starts tomorrow, January 26, 2023 and ends on Monday, January 30, and over 1.7 million pensioners will see increases of 7.75%.

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At the same time, it is recalled that 912,000 pensioners will see for the second month an increased pension due to the abolition of the special solidarity contribution, an increase that is permanent and will be applied to payments every month.

The network of pensioners’ income increases and supports that began to be implemented as early as December 20, 2022 (extraordinary financial support of 250 euros, abolition of the special solidarity levy, 4th annual increase of Vroutsis and a 7.75% increase) benefits 94.6% of pensioners (2,499,285 in a total of 2,634,786).

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In fact, 1.3 million retirees are seeing double increases, about 185,000 are seeing triple increases, and an additional pension will see 1 in 2 retirees by 2023.

In detail, the increases and the number of beneficiaries are distributed as follows:

1) An increase of 7.75% is seen by 1,724,713 pensioners. Of those, 80%-85% will see the full 7.75% increase, while the vast majority of the rest will see increases in excess of 7%, depending on how much personal difference they have.
2) 912,644 pensioners already saw smaller or larger increases since the abolition of the special solidarity contribution.
3) 1,206,624 pensioners received the emergency aid of 250 euros. The majority of them also saw the payment of another emergency aid last Easter.
4) 231,655 pensioners already saw the 4th annual increase of Vroutsis.

From the analysis of the individual categories of pensioners, single, double or even triple increases result.
Specifically:

– 2,499,285 pensioners see at least one increase (due to the 7.75% increase or the abolition of the solidarity contribution or the payment of the 250 euro allowance),
– 1,344,696 pensioners see a double increase (due to the combination of the increases of 7.75%, the abolition of the solidarity contribution or the payment of the extraordinary financial aid of 250 euros),
– 185,649 pensioners see a triple increase (due to the combination of the increase of 7.75%, the abolition of the solidarity levy or the payment of the extraordinary financial aid of 250 euros and the application of the 4th annual increase of Vroutsis).

What is the case with those who have a great personal difference

For the 910,000 pensioners who have a large personal difference, it turns out that 83% of them also see increases in their salaries. Specifically:

1) Through the abolition of the special solidarity contribution, 515,480 pensioners saw increases with a large personal difference. At the same time, they will see a significant reduction in their personal difference.

2) Through the payment of the extraordinary financial aid of 250 euros, 259,092 pensioners saw increases in their salaries and at the same time a significant reduction in their personal difference.

Finally, regarding the amount of the increase of 7.75% concerning the January pensions (paid in advance at the end of December), this will be attributed to the beneficiaries with the March pensions (paid in advance at the end of February).

The Minister of Labor and Social Affairs, Kostis Hatzidakis, stated: “The unfreezing of pensions after 12 years is an important moment for pensioners and their families. It’s the 7.75% increase that more than 1.7 million pensioners will see in their bills these days. Which, if combined with the abolition of the special solidarity levy, the payment of the extraordinary aid of 250 euros last month and the payment of the 4th annual increase of Vroutsis, benefits a total of 95% of pensioners. With the above increases, 1 in 2 pensioners will see an additional pension in 2023. It is our practical support for those who are struggling and have been patient all these years. However, the increases are not the only positive development for pensioners under the Mitsotakis Government. It was preceded by the Vroutsis law, which had corrected injustices of the Katrougalou law on a very large scale. And of course, the final resolution of the big issue of pending main pensions has preceded, with 500,000 awards in just 24 months. Words are not enough. We choose actions and social policy with results».

Examples of increases:

Example 1

With one increase: Pensioner who receives 850 euros per month. With the application of the 7.75% increase, the monthly benefit he will have will be approximately 66 euros, while the annual benefit will be 792 euros. In other words, it will reach 93% of an additional pension.

Example 2

With a double increase: A pensioner currently receives a pension of 900 euros and declares income from other sources of 6,200 euros in total per year. With the application of the 7.75% increase and the benefit from the abolition of the special solidarity levy, the total annual benefit amounts to 906 euros (840 euros from the 7.75% increase and 66 euros from the abolition of the special levy).

The annual benefit exceeds that is amounts to an additional pension.

Example 3

With a double increase: A pensioner receives 750 euros per month. With the application of the 7.75% increase, the monthly benefit he will have will be approximately 58 euros, while the annual benefit will be 696 euros.

At the same time, the pensioner was entitled to and received the extraordinary aid of 250 euros as his pensionable earnings do not exceed 9,600 euros per year.

With the calculation of both increases in his earnings, it follows that the total annual benefit amounts to 946 euros, far exceeding an additional pension.

Example 4

With a triple increase: A pensioner who submitted a pension request before May 2016, with more than 30 years of insurance, receives 514 euros per month.

With the application of the 7.75% increase, his monthly benefit from this increase will be 40 euros and the annual benefit will be 480 euros. At the same time, he received 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 euros per year.

Due to his low income (below 9,600 euros) he also received the aid of 250 euros.

Therefore, with the combination of the above three increases, it follows that his total annual benefit amounts to 904 euros.

He will therefore see a full additional pension but also 68% of a 2nd additional pension.

Example 5

With a double increase: A pensioner with monthly benefits of 1,100 euros, with the application of the 7.75% increase, will see a monthly benefit of 85 euros and an annual benefit of 1,020 euros. Due to the abolition of the special solidarity levy, he will see an additional annual benefit of 66 euros. The total annual benefit amounts to 1,086 euros touching an additional pension.

Example 6

Increases despite the existence of a significant personal difference. A pensioner with a positive personal difference of 70 euros receives a net monthly pension of 560 euros. The increase of 7.75% significantly reduces the personal difference but does not overcome it. Due to an income below 9,600 euros a year, the pensioner received the extraordinary financial aid of 250 euros and at the same time will see his personal difference reduced by 42 euros and will be able to see faster real increases in his pocket in the future.

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