Working pensioners stand to reap benefits
Labor Ministry ushers in changes eventually leading to gains of up to 3,500 euros annually
Working pensioners have four months to apply on the special platform of the Single Social Security Entity (EFKA) to have the 10% special contribution deducted from their wage which will eventually lead to an increase in their pensions to the tune of up to 3,500 euros annually.
Labor Minister Domna Michailidou said as much describing the change in the framework as a substantial improvement in the income of working pensioners, noting that they will now receive their pension in full, while the 10% deduction from their salary will gradually bring about an increase in their pension.
“This implies additional income for each working pensioner that can reach up to 3,500 euros per year,” she said.
More than 36,000 pensioners are already receiving their pensions in full from the beginning of 2024, rather than being reduced by 30%, as was the case until the end of 2023.
Upon submission of the application, the EFKA system will cross-check the data in order to automatically deduct the special 10% contribution from the salary of each working pensioner, in parallel with the insurance contributions as provided.
The contributions they pay as employees will be factored in and will increase their pension.
The ministry expects the abolition of the pension cut will serve as an incentive for other pensioners to declare their employment, since the total number is estimated to be at least 100,000.
Deputy Minister of Labor Panos Tsakloglou pointed out that this measure provides incentives to those pensioners who can and wish to work to reintegrate into the labor market, immediately increasing their disposable income and, in the future, their pension.
The application to the online platform must indicate the date of commencement of employment as a pensioner, the type of pension or pension application and the category of employment.
Those who have declared the start of their employment to EFKA in another way (e.g. submitting a printed statement to the local branch of EFKA) must repeat the declaration digitally on the platform.
Failure to declare the start of employment will result in a financial penalty equal to 12 monthly main and supplementary pensions.
