The proposal for changes in the pension system, national employment policies, and the adjustment of the national minimum wage, among others, took centre stage in the discussions of the Labour Advisory Council meeting chaired by Minister of Labour, Yiannis Panayiotou.
Following the session, the Minister addressed the proposal for immediate relief in pension deductions for individuals who have been working for numerous years. He highlighted that this proposal, formulated by the government and presented as a basis for discussion, received clarification from the actuarial services of the International Labour Organisation, providing responses to inquiries for social partners.
The Minister stressed that around 25% of those affected by pension deductions since 2012 – roughly 10,000 retirees – will see an immediate annual pension increase of approximately 800 euros. Additionally, an estimated 1,000 more beneficiaries will be included each year.
Regarding proposals from social partners, Panayiotou reiterated the government’s openness to suggestions within the economic framework set by the actuarial study. He anticipates forthcoming recommendations from these partners in the days and weeks ahead.
Nevertheless, he noted that abolishing pension deductions for those retiring prematurely before the age of 65 isn’t feasible. The postponement of discussions within the pension reform framework aims to sustain the pension deductions introduced in 2012 for all affected individuals.
The Minister underlined that while differing analyses exist, through dialogue, positive changes affecting the incomes of numerous retirees can be implemented within current possibilities.
Responding to whether the proposals put forward by social partners would increase the initial estimated cost according to the actuarial study, the Minister pointed out the importance of respecting the partners’ perennial views. He reiterated that while the proposal is not for immediate approval or rejection, it serves as a basis for discussions within the framework of social dialogue.
However, he stressed the need to stay consistent within the constraints defined by the actuarial study, where any increase in costs could impact either the contributions of workers and employers or the sustainability of the social security system, which is not the goal for anyone involved.
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