
An increase in pensions is expected from October 1 of this year. What will happen? Which categories benefit? Increasing the number of pensioners, but not increasing the budget for the indexation measure in the last changes.
At the beginning of next month, the Government is expected to increase the amount of the pension. There is still no final decision on this issue, but for months the executive has started an assessment process for the current pension scheme. What is said by the experts is that the low pensions, under 150 euros, will be revised. Will the review of the scheme really make an impact? Referring to the official data of the Social Security Institute, there are over 140 thousand people who currently receive a pension of less than 150 euros per month. This includes pensions in rural areas as well as family pensions in urban areas.
Specifically, until the end of 2023, the pension scheme resulted in about 705 thousand citizens, of which 608,581 urban pensions and 96,418 rural pensions.
In detail, out of 608,581 urban pensions: 503,747 are old-age pensions, including full, reduced and partial old-age pensions. For this category, the pension amount is on average 18,341 ALL and together with the compensations applied, it reaches 19,922 ALL per month.
Meanwhile, 60 956 are disability pensions (from general diseases, occupational diseases and accidents at work) which benefit an average of 18 851 ALL per month, including compensations and the rest, so 43 878 people are treated with family pensions. For the latter, i.e. for family pensions in urban areas, the benefit amount is 8,558 ALL, together with the compensations, it amounts to 10,139 ALL. It is precisely this category that will be affected by the pension increase and with the changes that will be finalized next year, family pensions in urban areas will not be below 150 euros, implying here an average increase of about 5 thousand ALL.
The other category that is affected in its entirety are pensions in rural areas. There are 96,418 people in the scheme, of which 86,902 are treated with old age pensions (full and partial old age), 5,636 with disability pensions and 3,880 with family pensions.
Referring to ISSH, for old-age pensions in the village, the amount of benefits, together with compensations, amounts to 11,576 ALL. For disability pensions, 9,201 ALL, while for family pensions, 2,408 ALL. Under these conditions, the allowance for this category is expected to vary from 4 thousand to about 13 thousand ALL per month.
In total, there are 140,296 pensioners who will benefit from the new supplement, in fulfillment of the commitment to no longer have pensions below 150 euros by 2030. But this is only one of the aspects that will be reviewed, which without question constitutes the essence of this new reform that will be undertaken. Among the planned changes are those related to the contribution period, which must be completed to receive a full pension, the contribution scheme for the self-employed in rural areas, as well as supplementary treatments.
Recent budget changes did not add funding for pension indexation
In fact, the pension increase measure is based on salary indexation. At the beginning of July, the government approved the indexation of pensions, which is then expected to be reflected in the increase of pensions in October. But according to the latest data, the number of pensioners who benefit from financial treatment from the social security scheme has increased significantly in the first half of the year. Official data from the Social Security Institute indicate that by June 2023, the number of beneficiary pensioners has reached 713,333 individuals, with an increase of 8,334 beneficiaries more than the end of the previous year.
On the other hand, in the recent changes in the budget review, the possibility of increasing the fund for pension indexation has not been restored. This will either lead to a deepening of the debt scheme, or there will be no real increase in pensions.
How is the calculation done?
After the July decision on the indexation of pensions for that age group that retires for the first time, since the rest receive only the indexation as an additional pension measure, the scheme becomes clearer as to how the additional benefit measure can be. Indexing is done on the basis of inflation and it is regulated that in the state budget, it enters the absolute value of how much money it will receive. On average, for the year 2024, there are 4.1 billion new ALL in the state budget, translated into absolute value it is 480 new ALL per month, starting from January 1st to December 31st. According to experts, the increase will be 480 thousand ALL, but this will not be reflected in all pensions, as indexation remains the main indicator for the possible increase in the amount of pensions./ VoxNews