The final plan that is being processed by the Ministry of Labor and Social Security and revealed today in the “Insurance and Pensions” insert provides:
1. Reduction of the EAS for all pensioners who receive a mixed main pension or sum of main pensions above 1,400 euros.
2.Reduction or abolition of the Special -supplementary- Solidarity Contribution imposed after the “normal” EAS to pensioners who retired prematurely at ages up to 60, and receive pensions of more than 1,700 euros.
3. Abolition of the EAS imposed at rates of 3% to 10% on mixed supplementary pensions over 300 euros. However, the abolition will depend on the scope of the reductions that will be decided for the EAS in the main pensions.
The ministry has come to two final scenarios, the most prevalent of which foresees the proportional imposition of the EAS with three or four scales on the amounts of the main pensions that exceed 1,400 euros.
Deductions will not be imposed on the entire amount but on the pension difference of each scale.
The pension scales for the imposition of the EAS will reportedly be a 15% reservation in the main pension section of the sum of main pensions from 1,400 euros to 2,000 euros, a 20% reservation in the main pension section of the sum of main pensions from 2,000 euros to 2,500 euros euros, 25% reservation in the main pension section of the sum of main pensions from 2,500 euros and above.
In the event that four scales are selected, the reservation rates and pension amounts on which they will be imposed are estimated to be 12% for the pension section from 1,400 euros to 1,800 euros, 20% for the pension section from 1,800 euros to 2,200 euros, 23% from 2,200 euros to 2,800 euros and possibly more 25% from 2,800 euros and above.
For high pensions, there will be an automatic cut-off in the event that, with the new scales, the resulting reduction is greater than the current one.
The second scenario under consideration envisages the freezing of the EAS when there is a reduction in pensions. With the freezing of the EAS, the rates will remain as they are today in the main pensions, i.e. deductions of 3% to 14% of the entire pension from 1,400 euros and above, with the difference that they will be reduced to zero when it is established that the pension increases are being dissipated.
In this scenario, for example, a pensioner receiving a main pension of 1,400 euros with the increase he will receive in 2025 will reach 1,435 euros. In this amount, he will have a contribution of 3% from the EAS and a reservation of 43 euros, which means that the increase is distributed and in fact he will have a pension reduction. With the alternative version that the ministry is considering, the pensioner will not have a reduction but will get the increase that belongs to him.
However, this alternative scenario will not be applied to all retirees, but as a competent official of the Ministry of Labor stated in the “Insurance and Pensions” insert, the freezing of the EAS will apply in cases where retirees end up with a smaller pension and zero increase. For this reason, the scenario for freezing the EAS is the cheapest of all, as only pensioners who will have reductions benefit.
What increases will pensioners see above 1,400 euros
Pensioners with earnings above 1,400 euros are expected to benefit doubly in 2025, as in addition to the increases they will receive in their pensions, with rates of around 2.5%, they will have an extra increase from the reduction in EAS deductions.
The additional increase from the smaller EAS deductions will reach up to 60 euros per month, based on the scenarios considered.
According to the tables edited and published by the “Insurance and Pensions” insert:
*A pensioner who receives a 1,412 euro gross main pension, currently has a reservation of 12 euros, while with the new scale the reservation drops to 2 euros and will have a pension increase of 10 euros.
*A pensioner who receives a 1,457 euro gross main pension, currently has a reservation of 44 euros, while with the new scale the reservation drops to 9 euros and will have a pension increase of 33 euros.
*A pensioner who receives a 1,736 euro main pension gross, currently has a reservation of 104 euros, while with the new scale the reservation drops to 50 euros and will have a pension increase of 51 euros.
*A pensioner who receives a 2,307 euro gross main pension, currently has a reservation of 208 euros, while with the new scale the reservation falls to 151 euros and will have a pension increase of 53 euros.
*A pensioner who receives a 3,651 euro gross main pension, currently has an EAS reservation of 510 euros, while with the new scale and with a reservation ceiling of 450 euros, he will benefit from a pension increase of 60 euros. If the ceiling is set at 400 euros, the increase he will get will be 110 euros.
What the increase will look like for those with a personal difference
Old pensioners will see increases in the amount of the personal difference from the reduction of the EAS in their pensions. For these pensioners, the EAS should be recalculated and the amount of the deduction they had in the old pension should be reduced. The reduction in reservation for those who do not have a personal difference will be reflected in the amount of pension they receive today. Those who are left with a personal difference balance will see the increase in their pocket, but with a higher personal difference, because the old pension will be higher than the pension they have today with the recalculation. However, there is also the alternative option of reducing the EAS to be offset by an equal reduction in their personal difference. In this case, however, they will not have a pension increase.
What has been established is that if the EAS is reduced in the old pensions, the resulting increase will go to the amount of the personal difference. Retirees will see a benefit with an increase in their overall pension, but the timetable for zeroing out their personal difference will be pushed back because the amount will be bigger and it will take more years to break even with annual increases. So the most likely scenario for old retirees will be to offset the benefit of the ESA reduction with the personal difference, so that the real increases will come faster.
What happens when the ESA is greater than the pension increases?
When the increases fall short of the EAS, retirees get even less than what they had without the increase! Here’s how: A pensioner with 1,695 euros gross has a 3% APR and a reserve of 50.85 euros. His pension after the detention amounts to 1,644.15 euros. With the 3% increase he got this year, the pension went up to 1,745.85 euros, but the EAS reservation due to a change in scale, doubled to 6%, and went to 104.75 euros with the pension going down to 1,640 euros. In practice the increase was evened out because the EAS was doubled, with the result that the amount of the pension was also reduced.
THE INCREASE IN THE MAIN PENSIONS WITH A REDUCTION IN THE EAS
1. Pensions from 1,411 to 1,751 euros
| Pension (mixed) | EAS 2024 | Pension before tax | New EAS | New pension before tax | Pension increase due to EAS reduction |
| 1.412 | 12 | 1.316 | 2 | 1.325 | 10 |
| 1.427 | 27 | 1.316 | 4 | 1.337 | 21 |
| 1.442 | 42 | 1.316 | 6 | 1.350 | 34 |
| 1.457 | 44 | 1.329 | 9 | 1.362 | 33 |
| 1.488 | 45 | 1.357 | 13 | 1.387 | 30 |
| 1.504 | 45 | 1.371 | 16 | 1.399 | 28 |
| 1.581 | 47 | 1.442 | 27 | 1.461 | 19 |
| 1.720 | 103 | 1.520 | 48 | 1.572 | 52 |
| 1.736 | 104 | 1.534 | 50 | 1.584 | 51 |
| 1.751 | 105 | 1.547 | 53 | 1.596 | 49 |
2. Pensions from 1,766 to 2,060 euros
| Pension (mixed) | EAS 2024 | Pension before tax | New EAS | New pension before tax | Pension increase due to EAS reduction |
| 1.766 | 106 | 1.561 | 55 | 1.609 | 48 |
| 1.797 | 108 | 1.588 | 60 | 1..633 | 45 |
| 1.813 | 109 | 1.602 | 62 | 1.646 | 44 |
| 1.844 | 111 | 1.629 | 67 | 1.671 | 41 |
| 1.859 | 112 | 1.643 | 69 | 1..683 | 40 |
| 1.875 | 112 | 1.656 | 71 | 1.695 | 39 |
| 1.890 | 113 | 1.670 | 74 | 1.708 | 38 |
| 1.906 | 114 | 1.684 | 76 | 1720 | 36 |
| 1.998 | 120 | 1.766 | 90 | 1.794 | 28 |
| 2.060 | 144 | 1.801 | 102 | 1.841 | 40 |
3. Pensions from 2,075 to 3,651 euros
| Pension (mixed) | EAS 2024 | Pension before tax | New EAS | New pension before tax | |
| Pension increase due to EAS reduction | 2.075 | 145 | 1.814 | 105 | 1.852 |
| 38 | 2.307 | 208 | 1.974 | 151 | 2.026 |
| 53 | 2.570 | 231 | 2198 | 207 | 2.221 |
| 22 | 2.663 | 266 | 2.253 | 231 | 2.286 |
| 33 | 3.064 | 368 | 2.535 | 331 | 2.569 |
| 34 | 3.234 | 420 | 2.645 | 374 | 2.689 |
| 44 | 3.342 | 435 | 2.733 | 401 | 2.765 |
| 32 | 3.389 | 441 | 2.771 | 412 | 2.798 |
| 27 | 3.404 | 443 | 2.784 | 416 | 2.809 |
| 25 | 3.651 | 511 | 2.9524 | 50 (ceiling) | 3.011 |
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