Politis

Ministry of Labor: Pension Increase from Reform Will Be Noticeable - Statement on 12% Penalty

Published February 15, 2026, 12:17
Ministry of Labor: Pension Increase from Reform Will Be Noticeable - Statement on 12% Penalty

The Minister of Labor and Social Insurance, Marinos Mousiouttas, stated that the increase in pensions from the pension reform is expected to be noticeable, especially for low-income pensioners. The first phase of the reform, concerning the Social Insurance Fund, is estimated to be implemented from January 1, 2027, aiming to increase pensions, correct distortions, and repay the state's debt to the Fund. The second pillar of social security, concerning Provident Funds, will not proceed immediately, as at least two to four years are required for its implementation due to the need to upgrade and make the supervisory authority independent. Regarding borrowing from the Social Insurance Fund and its investment policy, these will be determined in consultation with the Minister of Finance. The new investment policy will determine how the funds will be invested, with the possibility of placement in government bonds, a safe but potentially lower-yielding option. Regarding the 12% proportional reduction, the Minister assured that there will be a downward differentiation, however, it cannot be completely abolished as it is a key element of the discussion. The effort is to avoid burdening state funds from the reform or to burden them as little as possible. Finally, the Minister mentioned that the study on the minimum wage should include the trade unions' request for hourly pay.