Alpha News

Pension Increases Expected Following Reform, Changes to 12% Penalty

Published February 15, 2026, 12:20

Minister of Labour and Social Security, Marinos Mousiouttas, stated that the increase in pensions following the reform is expected to be noticeable, particularly for low-income pensioners. The first phase of the reform, concerning the Social Insurance Fund, could be implemented from January 1, 2027, aiming to increase pensions, resolve distortions, and improve the administration and investment policy of the Fund. The second pillar, concerning Provident Funds, will not proceed immediately, as it requires additional years for implementation. Regarding the 12% reduction in pensions, the Minister mentioned that there will be a downward adjustment, but it cannot be abolished. The government is striving to avoid burdening state funds with the reform, and the study on the minimum wage will include the request for hourly compensation.