Pensions: The new amounts on application in 2024 and the increases in 2025 [πίνακες] 2024-08-01 21:38:57

On average their profit will be around €35 ​​extra increase, even if they leave with the same insurance years as those who will retire in 2024.

Starting next year, the pensionable earnings that are the basis for calculating the compensatory pension will cease to increase with inflation and will increase with the rate of increase in the Wage Index. The new system means that as wages rise above inflation, a larger proportion of the increase than before will go into the contributory pension.

Currently, the pensionable earnings of each year from 2002 until the year of retirement are increased by the inflation rate of the previous year. For example, an insured person retiring in 2024 will have their pensionable earnings increase by the rate of inflation in 2023. Inflation in 2023 was 3.5%, so if their pensionable salary from 2002 to 2023 averages 1,500 euros will increase to 1,552 euros. The salary will be multiplied by the replacement rate corresponding to the years of insurance and the compensatory pension will be obtained.

This system is ending this year. From 2025 onwards, pensionable salaries will be increased with a new Index, the Wage Change Index, which is now created by EL.STAT. and the Ministry of Labour. The index will be derived from the average salary increases for all employees. The higher the salary increases, the higher the percentage increase that the insured will have in their pensionable earnings and a part of the increase will go to the compensatory pension.

Pensionable earnings means the average gross monthly earnings from 2002 onwards on which main and supplementary pension sector contributions have been paid. Correspondingly for freelancers as pensionable earnings are the average contributions from 2002 onwards.

The higher the wages move in 2024, the greater will be the increase that will be “transferred” to the compensatory pension of the insured who will retire in 2025 and the following years.

From next year, therefore, the pensionable earnings of the insured and, in this case, of public employees, which form the basis for calculating the compensatory pension, will increase with inflation for the years from 2002 to 2024 and with the wage increase index from 2025 and after. If in 2024 the salary index registers an increase of 4.5%, this percentage will also increase the salary that will be taken into account for the compensatory pension of those who leave in 2025.

With the wage index the increase in contributory pension can be greater compared to the increase that would occur if the change in pensionable earnings continued to be based on inflation, as can be seen in the examples listed today in the ‘Insurance and Pensions’ insert.

New pensions with application in 2024 and increases for those leaving in 2025

Increasing pensionable earnings by the Wage Index, rather than inflation, favors the condition that wages in 2024 will rise above inflation for those retiring in 2025.

According to the tables edited and published by the “Insurance and Pensions” insert:

*With the existing pensionable salary increase system (inflation of the years 2002-2023), an insured person of category D.E. with 38 years of age and pensionable earnings of 1,608 euros in 2024, he will receive a pension of 1,148 euros gross, of which 426.17 euros is the national pension and 722 euros is the compensatory pension.

*With the new pensionable salary increase system (Salary Change Index) and taking into account that the 2024 salary change will be 4.5%, an insured person of category D.E. with 38 years in 2025 he will receive a pension of 1,180 euros, of which 426.17 euros is the national pension and 754 euros is the compensatory one. He has a profit of €34 because his pensionable earnings will take the 4.5% increase in the Wage Index for 2024.

*With the existing system of increasing pensionable earnings (based on inflation) a P.E. with 40 years and pensionable earnings of 2,243 euros, if he retires this year he will receive 1,548 euros gross, of which 426.17 euros is the national pension and 1,122 euros is the severance pay.

*With the new system (salary change), an insured person of the same category who will be 40 years old in 2025 will receive a pension of 1,598 euros, of which 426.17 euros is the national pension and 1,192 euros is the compensatory pension. He has a profit of €70 because his pensionable earnings will take the 4.5% increase in the Wage Index for 2024.

Are wage increases higher than inflation or not?

The rule in recent years has been that wage increases are above inflation. For example, the minimum wage has risen cumulatively over the past three years by 23% while inflation has risen cumulatively by 16.1%. In the State, salaries increase every three years through salary maturation (by changing the salary scale). The first raises given to employees in 2024 for the first time since the Memo years were 6% to 8%, which is above inflation in 2023 (3.5%) and projected inflation of 2.9% for 2024 .

The age limits for pension with 35-40 years and the … changes

Until 2026, no changes are expected in the retirement age limits. Employees who will have a vested right by then will not be affected by the increase in retirement limits, which will probably be decided in 2026, to take effect from 1/1/2027.

In order to establish a right to a pension before the age of 62, civil servants can take advantage of the 35-year, 36-year, and 37-year provisions under the following conditions:

1. Appointed until 1992 for retirement with 35 years. 25 years in 2010 and a total of 35 insurance years required with age 58 by 31.12.2021 for a pension with retirement age limits up to 61 and 6 months. From 2022 to 2026 the limit goes to 62 years and 40 years of insurance are required.
2. Appointed between 1983-1992 for a pension of 35 years. Those who are 25 years old by 2010 and 35 years old by 2021 with age 58 go out with age limits up to 61.6 years. From 2022 to 2026 they reach 62 with 40 years of insurance.
3. Appointed between 1983-1992 to retire with 36 years. Those who complete 25 years in 2011 and 36 years by 2021 with age 58 qualify for retirement with age limits up to 61.6 years. From 2022 they will be 62 to 40 years old.
4. Appointed between 1983-1992 to retire with 37 years. Those who turn 25 years old in 2012 and by 2021 have completed 59 to 37 years of insurance (including fictitious) come out with age limits of up to 61.8 years. From 2022 they will be 62 to 40 years old.
5. Appointed after 1983 and with insignia in Non-Government Funds before 1983. This category gets a pension with 37 years, as long as they complete it by 2021, with an age limit of 61.2 years. With 37 years after 2022, 40 years of insurance and age 62 are required.

What pension will those who leave in 2024 and 2025 get from the State

Years of insurance	Category H.E.			Category D.E.
	Pensionable earnings	Pension amount in 2024	Pension amount in 2025	Pensionable earnings	Pension amount in 2024	Pension amount in 2025
33	1.248 €	829 €	847 €	1.492 €	908 €	930 €
36	1.290 €	940 €	963 €	1.550 €	1.043 €	1.071 €
38	1.332 €	1.024 €	1.051 €	1.608 €	1.148 €	1.180 €
40	1.365 €	1.109 €	1.139 €	1.658 €	1.255 €	1.291 €

Years of insurance	Category T.E.			Category P.E
	Pensionable earnings	Pension amount in 2024	Pension amount in 2025	Pensionable earnings	Pension amount in 2024	Pension amount in 2025
33	1.937 €	1.052 €	1.080 €	2.053 €	1.090 €	1.119 €
36	1.991 €	1.219 €	1.254 €	2.111 €	1.267 €	1.304 €
38	2.045 €	1.344 €	1.386 €	2.168 €	1.400 €	1.444 €
40	2.096 €	1.475 €	1.522 €	2.243 €	1.548 €	1.598 €

HE = COMPULSORY EDUCATION DE = SECONDARY EDUCATION TE = TECHNOLOGICAL EDUCATION PE = UNIVERSITY EDUCATION

The age limits for pension with 35, 36, 37 and 40 years

1. Recruitment until 1992 with 25 years until 2010

With 35 years in total and age 58	Retirement age limit
Until 8/18/2015	58
From 19/8 to 31/12/2015	58,6
In 2016	59
In 2017	59,5
In 2018	60
In 2019	60,5
In 2020	61
In 2021	61,5
In 2022	62 and 40 years

(1) For the 35 years, time of military service and previous service with official IKA is included. Children’s time is recognized for the 25th anniversary of women.

2. Recruitment after 1/1/1983 with 25 years until 2010 (and with insignia before 1983)

With 37 years in total and age 55	Retirement age limit
Until 8/18/2015	No age limit
From 19/8 to 31/12/2015	55,11
In 2016	56,9
In 2017	57,8
In 2018	58,6
In 2019	59,5
In 2020	60,3
In 2021	61,2
In 2022	62 and 40 years

(2) Military service time is also recognized for the 37th year.

3. Recruitment from 1/1/1983 to 31/12/1992 with 25 years in 2011

With 36 years in total and age 58	Retirement age limit
Until 8/18/2015	58
From 19/8 to 31/12/2015	58,6
In 2016	59
In 2017	59,5
In 2018	60
In 2019	60,5
In 2020	61
In 2021	61,5
In 2022	62 and 40 years

(3). 4 fictitious years from studies, military service and an additional 1, 3 and 5 years from children are recognized.

4. Recruitment from 1/1/1983 to 31/12/1992 with 25 years in 2012

With 37 years in total and age 59	Retirement age limit
Until 8/18/2015	59
From 19/8 to 31/12/2015	59,5
In 2016	59,9
In 2017	60,2
In 2018	60,6
In 2019	60,11
In 2020	61.3
In 2021	61,8
In 2022	62 and 40 years

(4) 5 fictitious years from studies, military service and an additional 1, 3 and 5 years from children are recognized.