K. Hatzidakis: At least 87% of pensioners will see a direct increase in their pension, some double and triple

«After 12 years, pensions are thawing and at least 87% of pensioners will see a direct increase in their pensions, many of whom will see a double and triple increase,» said Minister of Labour and Social Affairs, Kostis Hatzidakis, in an interview with SKAI TV station.
In the context of the interview, Mr.Hadjidakis clarified that the increase, which will be given retroactively from 1 January 2023, is linked to the price index and growth and said that the percentage of the increase will be determined once the official data on GDP growth and the increase in the price index in the current year are announced by ELSTAT.
At the same time, the Labour Minister noted that for many pensioners the increases will be more. As he explained, in 2023 there will be an increase in earnings from the abolition of the solidarity contribution, an increase from the fourth tranche of the recalculation of pensions for 30 years and over and the granting of the extraordinary one-off aid of 250 euros, as well as the aforementioned increase based on inflation and growth.
«The vast majority of pensioners will see a direct increase in their pension», Mr.Hadjidakis clarified, stressing that some, although they will not see something immediately in their pockets because they have a larger personal difference due to the Katrougalos law, with these increases they will «nibble» significantly on their personal difference and will be in a better position for future increases. However, the majority of those subject to the personal difference provisions will see an increase in income due to the abolition of the extraordinary solidarity contribution. «We have calculated, without taking into account the effect that the one-off one-off 250 euro aid or the fourth tranche of recalculation of the Vroutsis law may have, that only 13% of pensioners will be left with no real increases, 87% will have increases and many of them will have a double increase and others will have a triple increase,» the minister pointed out, adding that of the 850.000 pensioners who fall under the personal difference of the Katrougalos law, 504,000 will benefit directly due to the abolition of the solidarity contribution.
He then presented specific examples, highlighting the following:
Example 1:
Assuming that the rate of increase will be 7%, pensioners receiving a pension of €750 will have a monthly benefit of €53, while the annual benefit will be €636, (i.e. €85% of the 13th pension). However, the minister added, the vast majority of pensioners in this category will be eligible for the 250 euro benefit. Therefore, if the one-off one-off benefit of 250 euros is added to the 636 euros, which is the annual benefit of the increase, the benefit amounts to 886 euros.
Example 2:
Under an increase scenario of 7%, pensioners receiving a pension of €900 would have a monthly benefit of €63 and an annual benefit of €756 (i.e. 90% of the 13th pension).
Example 3:
Assuming that the rate of increase is set at 7%, someone receiving a disability pension of €514 would have a monthly benefit of €36 and an annual benefit of €432. If the one-off lump sum of €250 is added, the total benefit would be €682.
Among other things, the Labour Minister said that the issue of the issue of outstanding main pensions is in the final straight for its final resolution and that from the beginning of the new year the programme of granting low-interest loans to young people or new couples will be launched.
In addition, Mr.Hatzidakis referred to another new measure concerning maternity allowance, which will be extended to the private sector from 2023 for three months. From six months, that is, to nine months. According to the Ministry of Labour and Social Affairs, the measure can be applied as an alternative for the father and is primarily aimed at supporting the family and equalizing, essentially, between the public and private sectors. Based on the example published by the Ministry, a mother currently receives for special maternity protection benefits the basic minimum wage for six months, i.e. 713 x 6 = 4,278 euros (gross). By extending the benefit by three months, she will receive 713 X 9 = 6,417 euros gross.
Referring to today's publication that speaks of a «freeze» on the increase in insurance contributions for freelancers, self-employed and farmers, the Labour Minister clarified that insurance contributions will not be «frozen» for these categories of insured persons and noted: ’SYRIZA, with the Katrougalos law, crushed the self-employed. Our government has radically changed this system in favour of the self-employed and the self-employed. Now, an employee who is paid the minimum wage pays 20% more in contributions to the EFKA than freelancers do. If we freeze contributions, these people will not get high pensions because to get a pension you have to pay contributions first. A worker paid minimum wage cannot pay higher contributions than a doctor, a lawyer and an engineer. We may be in the last year before the election, but that doesn't mean we won't be responsible.«.
Finally, regarding the retroactive payments, Mr.Hadjidakis stressed that they will be given according to the court decisions.