From the New Year, the provision of the Ministry of Labor and Social Security for the abolition of the withholding of 30% of the pension of working pensioners is expected to be implemented.

With the proposed regulation of the new insurance bill, the main core of which is the reform of the occupational insurance institution, employed pensioners will now receive the full amount of their pension, without deduction. At the same time, a non-remunerative resource in favor of e-EFKA is established, which, for employed pensioners, will be equal to 10% of their insurable earnings and for self-employed pensioners to 50% of the chosen insurance class for main pension. Also, an annual ceiling of the resource is defined, which cannot exceed 12 times the monthly national pension.

According to examples already published by the Ministry of Labor and Social Security, retired workers will benefit significantly from the new provision.

As can be seen from the examples, a pensioner who works and receives a pension of 1,200 euros, had a deduction of 360 euros, based on the current regime. If this pensioner is employed, with a gross monthly salary of €780, he will receive his entire pension and the withholding of €360 is replaced by a non-remunerative resource of €78. The benefit amounts to 282 euros per month.

If the same pensioner works as a freelancer and has chosen the first insurance class, then the withholding amount of 360 euros is replaced by a non-reimbursable fund of 169.95 euros x 50% = 84.98 euros. The benefit reaches 275.02 euros per month.

The full amount of the pension for working pensioners

With this particular legislative initiative, among other things, it is sought to further increase the legal and declared participation in the labor market of pensioners who wish to work.

At the same time, the insurance time created by the pensioner’s employment is used to supplement the already paid pension.

Speaking to APE-MPE, the Minister of Labor and Social Security, Adonis Georgiadis, states the following: “From the 1st of the year, we are putting an end to the unfair 30% “penalty” for those pensioners who choose to work. Penalty-free retirement is the first thing I said I would solve when I became Minister of Labour. It is not possible to punish the pensioner who wants to work and remain active in society.

Today, 50,000 of our fellow citizens who have secured a pension right, continue to work and I believe that, with the new provision of the insurance bill, this number will double. The benefit for society, but much more for the pensioner himself, is great and I am very happy that, during my term, I was able to provide a solution to this constant request of these people.

Therefore, with the passing of the new insurance bill, automatically, from the 1st of the year 2024, working pensioners will receive the full amount of their pension, without withholding and, instead, they will be withheld a non-reimbursable resource for EFKA, amounting to 10%, from their salary, while, in the case of freelancers, the withholding will be 50% on the insurance category they will choose themselves”.