Detailed instructions for increasing pensions gives it Ministry of Labor and Social Affairs through seven questions and answers and indicates that the exact timing of the payment of surcharges of the order of 7% will be officially announced by the government, as soon as the technical details are clarified. “In any case, the increases will have retroactive effect starting from 01/01/2023,” the Ministry of Labor specifies.

Here are the questions and answers:

1) How many retirees will see a 7% increase from January 1, 2023?

An increase of 7% will be seen by 1,682,116 pensioners of all Funds and regardless of the type of pension they receive (for old age, widowhood, disability). Of these, 80-85% will see a full 7% increase, while the vast majority of the rest will see more than a 6.5% increase, depending on how individual they are.

For an additional 931,631 pensioners with large personal differences, it appears that 88% of them will also see an increase in their wages through the abolition of the special solidarity contribution (525,456 beneficiaries with large personal differences) and through the payment of an emergency assistance of 250 euros (265,367 recipients). At the same time, they will see a significant reduction in their personal differences.

It is recalled that the vast majority of pensioners, namely 2,472,939 people out of a total of 2,613,747 people (94.6%), will see a one-, two-, or even three-fold increase in income. In fact, the increases are such that every second pensioner will receive at least one additional pension (many amounts exceed one additional pension).

From the analysis of the data it follows that:

• 2,472,939 pensioners will see at least one increase (due to a 7% increase or the elimination of the solidarity contribution or the payment of an allowance of 250 euros),
• 1,273,440 pensioners will see a double increase (due to a combination of 7% increases, the abolition of the solidarity contribution or the payment of an emergency financial assistance of 250 euros),
• 97,415 pensioners will see a threefold increase (through a combination of a 7% increase, the abolition of the solidarity contribution or the €250 emergency financial assistance payment, and the application of the 4th annual Vroutsis increase).

2) When will the increase apply to beneficiaries?

As soon as the technical details are clarified, the exact timing of the payment of the 7% increase will be officially announced by the government. In any case, the increase will be retroactive from 01/01/2023.

3) Will the increases apply to both the national and contributory parts of the pension?

Yes. Both national and insurance pensions are being increased. That is, even if the growth rate for 2023 is 7%, the national pension will be 411 euros in 2023 from 384 euros that we have today. This will be the amount that the pensioner will already receive, but each new pension will be issued for this amount. This process is continuous: if we assume that in 2023 the average GDP and inflation will be 5%, then from 2024 the national pension will be 432 euros, and so on. Accordingly, the compensatory part of the pension increases in the same way.

4) Will the increase in the national pension affect a number of other pension payments?

The increase in the national pension will “entrain” a number of indicators that are “tied” to the national pension: the ceiling for basic pensions, the minimum limits for death pensions, and the allowance for uninsured pensioners. , all adjusted to the above.

5) Will insured individuals retiring during 2023 see similar increases?

And policyholders who retire in 2023 will see revenue increases matching the 7 percent increase that active retirees will receive from January 1, 2023.

The difference between allowances for active pensioners and those who will become pensioners from 01/01/2023 is that they are calculated using a different mechanism.

The law provides for two different mechanisms for adjusting to inflationary pressures:

The first relates to pensions already granted: each year from 01/01/2023, the total amount of pensions increases based on the rate derived from the sum of the annual rate of change of GDP plus the rate of change of the average annual general consumer price index of the previous year, divided by 2.

The second relates to pensions payable at any time in the future: the compensatory part of the pension arises on the basis of pensionable earnings. Pensionable earnings are adjusted based on the change in the average general consumer price index. In any case, pensionable earnings are adjusted to the previous year of retirement.

Thus, the pensions that will be issued in 2023 will be increased because pension earnings have multiplied and increased by 2022 inflation.

Bottom line: For those insured who are expected to retire in 2023 or later, there is nothing to worry about as they will also see an increase in pension benefits in line with the increase that active retirees will see from January 1, 2023.

6) Will the 7% allowances also apply to those pensioners who have not been recalculated pensions?

Firstly, this number does not exceed 100,000 cases, i.e. 4% of all pensioners. However, they will also be given the increase they received, even if their recalculation has not been completed.

7) What happens to pensioners who receive high ceiling pensions (4608 euros) and will exceed the ceiling due to increases?

The pension ceiling is a multiple (12 times) of the national pension. Thus, as the national pension increases, so does the ceiling, and this does not affect those who receive high pensions. Therefore, from 01/01/2023 and with an increase of 7%, the ceiling will be 4,932 euros.

Source: APE/MEB