Pensions set for further reductions in the new year

Circulars issued by the Labor and Social Security Ministry late last Friday have thrown many current pensioners and people approaching retirement into uncertainty and despair, as the amount that those who retired after May 13, 2016 are set to receive has been significantly reduced.

This represents the implementation of the provisions of a law then minister Giorgos Katrougalos introduced seven months ago, and the biggest losers are self-employed professionals who in previous years paid very low social security contributions, and salary workers with high incomes and many years of contribution payments. While the full national pension stands at 384 euros per month, in some cases it can be reduced by up to 30 percent – i.e. just 269 euros.

Up to September 2017 the state will also have to recalculate the pensions currently paid out, which is certain to lead to fresh cuts for those who have recently retired.