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Minister of Labour: Pension Reform Will Address Distortions

Published January 26, 2026, 14:16
Minister of Labour: Pension Reform Will Address Distortions

The Minister of Labour and Social Insurance, Marinos Mousiouttas, presented the pension reform plan to the Parliamentary Committee on Finance, which is expected to take effect on January 1, 2027, if approved by the Parliament. The aim of the reform is to address the distortions of the system, increase pensions and benefits, and improve its sustainability. The Minister stated that the state's debt to the Social Insurance Fund amounts to €11.3 billion, while the total debt to all Funds amounts to €12.8 billion. The reform is expected to contribute to the repayment of this debt. The budget of the Social Insurance Fund for 2026 forecasts revenues of €3.769 billion and expenditures of €2.743 billion, with an estimated surplus of €1.03 billion. Revenues come mainly from contributions, while expenditures cover pensions, benefits and administrative expenses. In addition, the budgets for the Leave Fund, the Insolvency Fund and the Surplus Fund were presented, all of which are also in surplus. The government aims to manage the reserves of the SIC effectively and improve its investment policy as part of the pension reform.