Trade unions are calling on the government to set out all aspects of the planned pension reform clearly and honestly, stressing that pensions must not fall below the poverty threshold.
They also repeated the need for a comprehensive reform that strengthens provident funds, so that retirees can secure an adequate income.
The comments come after Labour and Social Insurance Minister Marinos Mousiouttas said the basic pension after the reform would be below €1,088. Union leaders set out their positions to Politis.
SEK general secretary Andreas Matsas said the minister’s remarks confirm the need for the reform to be collective and to include provident funds, as the pension remains below the minimum wage.
“From the outset, the aim has been for there to be no pensions below the poverty line,” he said.
PEO general secretary Sotiroula Charalambous said the government must provide all answers honestly. Based on what has been presented so far, she added, even after the revised minimum pension there will still be pensions below the poverty line.
“It is not the most correct or rational approach for figures to be leaked by anyone,” she said.
Charalambous also called on the government to clarify the criteria and conditions that will apply under the new low-pensioners’ scheme, as well as how subsidised contributions will operate, who will receive them and for how many years, noting that these factors affect the level of a pension.
DEOK president Stelios Christodoulou told Politis that all pensions should be improved, stressing that pensions cannot remain below the poverty threshold.
He also said there must be agreement on how the poverty threshold is defined for each pensioner. Based on current data, he said, the poverty line for workers is 60% of the median wage, or around €1,150.
“A fair pension amount is 80% of the national minimum wage at any given time,” he said, adding that provident funds are also a supporting pillar of the pension system.
“We are asking, within the framework of the dialogue, for the universal application of provident funds for all workers,” he said.
Careful Increase for Social Insurance Fund
Mousiouttas said at a press conference on Tuesday that the aim is to increase the basic pension as much as possible without affecting the capacity of the Social Insurance Fund.
Asked about the level of the minimum pension after the reform, and invited to comment on political statements on the issue, he said “various references have been made in the pre-election period”, stressing that it must always be examined whether pledges can be implemented.
“What I can say with certainty is that the basic pension will be below €1,088,” he said, based on the figures being processed by the actuary.
“We are giving the maximum possible amount without disrupting financial balances,” said the ministry’s director-general, Stelios Himonas.
The amount to be announced, he added, will be in line with the fund’s capacity. The largest percentage increase, he said, will be recorded in the lowest pensions.
Timeline for Reform
The minister said the timetable provides for the reform bills to be submitted to the House of Representatives in June 2026, with parliamentary discussion beginning in September 2026 and the new system officially coming into effect on January 1, 2027.
Mousiouttas said the social partners do not appear to have major differences on the first pillar. The biggest differences appear to concern the second pillar, he added, expressing the view that they can be resolved through the dialogue, which has already begun intensively.