Unions and employers race against the clock on pension reform

Economy pensionerspensionsTop News Unions and employers race against the clock on pension reform Unions And Employers Race Against The Clock On Pension Reform Relevant News Unions and employers race against the clock on pension reform 26 August 2026 Christodoulides, Erhürman meet today, divided over path to talks 26 August 2026 Chloraka restaurant damaged in fire, arson not ruled out 26 August 2026 Angelos Angelodimou 26 August 2026 FacebookXWhatsAppEmailPrintViber Trade unions and employers are in intensive talks to prepare their positions and seek clarifications on the government’s proposed pension reform, ahead of a new Labour Advisory Body meeting on Friday. Our information suggests the Friday session is unlikely to produce in-depth discussion or formal positions from the social partners. Officials from employer and union organisations told us the relevant bodies and their advisers are currently studying the bill from both an actuarial and a legal standpoint. Leadership-level discussions will follow, after which collective bodies will need to convene to submit final positions, a process expected to allow unions and employers to enter substantive dialogue by mid or late September. Combined with the Labour Minister’s stated intention to submit the government bill to parliament on September 24, this creates a particularly tight timeline. Tight timelines Labour Minister Marinos Moushouttas has repeatedly noted that pensioners will see increases in their pockets by late January or early February, when the first payment under the reform is made. He has also said the bill needs to be submitted to parliament in good time, given parliamentary procedures, so debate can begin within October. Social partners note that if the Labour Advisory Body does not reach the maximum possible convergence, more time will be needed for debate in parliament, raising the possibility that political parties could table their own proposals on the bill. Five key points According to our information, five main points will be on the table for discussion. The twelve per cent penalty. The government has proposed reducing the penalty to seven point five per cent, but only for the basic portion of pensions, a point expected to draw objections and counterproposals. Increases phased over five years. This point has generated considerable debate. Several voices have argued that statements about increases of 200 to 300 euros created excessive public expectations, before it was clarified that the increases would be phased in over five years. The Labour Minister responded that the increases would be paid immediately if possible, but said the sustainability of the Social Insurance Fund takes priority, adding that the cost-of-living allowance increase should also be factored into the higher amount pensioners will receive. The Low-Income Pensioner Support Allowance. Significant changes are expected for low-income pensioners. The pension increase, combined with a reduction in the allowance, is expected to create a new picture, with pensioners needing to do the sums to understand the new amount they will receive. Widowers. This issue was left out of the reform, a development that has caused dissatisfaction among trade unions. The Labour Minister said such a provision would require an additional 35 million euros in funding, meaning a reduction elsewhere would be needed to finance it. Provident funds. The second pillar formed a large part of the discussions, with differences between the government and social partners remaining. SEK has taken a particularly firm stance on this point, with the union’s Secretary-General, Andreas Matsas, stressing that without the second pillar, the reform cannot be described as a pension reform, but rather as an adjustment to the existing system. Finance ministry: too early for cost figures Asked yesterday about the cost of the pension reform, Finance Minister Makis Keravnos said discussions were continuing between the Labour Minister and social partners, adding that “it would be premature to start discussing what the cost is at this point.” Speaking after presenting the government’s fiscal policy to the Cabinet, Keravnos said the reform bill includes various provisions and scenarios. Once the social partners’ positions are received, the scenario to be followed will take shape, allowing for more specific discussion. 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