The proposed pension reform is expected to deliver the largest increases to retirees with low and low-to-middle incomes, according to examples published by the Ministry of Labour.
Up to 50% increase for low incomes
Under the ministry's indicative calculations:
- A pension of €411 would rise to €577 (+40%).
- A pension of €497 would increase to €667 (+34%).
The ministry says pension increases for some low-income insured persons could reach 50% once the reform is fully implemented.
Moderate gains for middle incomes
For middle-income earners, increases are smaller but remain positive:
- A pension of €921 would increase to €1,019 (+11%).
- For a contributor with 42 years of contributions and seven credited years, the pension would rise from €1,524 to €1,611.
The figures are based on illustrative calculations using 2024 prices and reflect the impact of the reform at full implementation.
No reductions for higher incomes
The ministry says the reform does not reduce pensions for higher-income contributors.
Examples provided show either small increases or virtually unchanged benefits:
- 25 contribution years plus seven credited years: €1,223 → €1,271
- 35 contribution years: €1,706 → €1,713
- 42 contribution years plus seven credited years: €2,032 → €2,034
Key takeaway
The reform is designed to redistribute benefits more strongly toward low-income pensioners, while ensuring that existing pensioners and future retirees with higher earnings do not see their pensions reduced.
