The pension reform could increase monthly pension payments across all income groups, with the largest rises expected for low-income pensioners, according to examples published by the Ministry of Labour.
The Ministry has presented tables showing how much pensioners could receive under the proposed changes, based on a bill that is due to be submitted to Parliament.
The examples indicate that increases will vary according to income, years of contributions and subsidised contribution periods. Low-income pensioners could see increases of up to 50%, while rises for middle-income groups are expected to be smaller.
Low-income pensioners could see increases of up to 50%
Under the proposed reform, a pension of €411 for someone with 30 years of contributions and seven subsidised years would rise to €577.
For those with 35 years of contributions and seven subsidised years, a pension of €436 would increase to €655. Meanwhile, a pension of €508 for someone with 42 years of contributions would rise to €764.
The Ministry’s examples also show increases for pensioners on low to middle incomes.
A pension of €497, based on 25 years of contributions and seven subsidised years, would rise to €667. For those with 35 years of contributions and seven subsidised years, a pension of €642 would increase to €827.
For pensioners with 42 years of contributions and seven subsidised years, a pension of €762 would rise to €976.
Smaller increases for middle-income pensioners
The proposed reform provides for smaller percentage increases among middle-income pensioners, reaching up to 11%.
A pension of €921, based on 25 years of contributions and seven subsidised years, would increase to €1,019.
For pensioners with 35 years of contributions, a monthly payment of €1,258 would rise to €1,341. Those with 42 years of contributions would see a pension of €1,524 increase to €1,611.
No pension cuts for higher-income groups
The Ministry’s examples indicate that pensions for higher-income groups would not be reduced under the proposed reform.
A pension of €1,223, based on 25 years of contributions and seven subsidised years, would rise to €1,271.
For those with 35 years of contributions, a pension of €1,706 would increase to €1,713. Meanwhile, a pension of €2,032 for someone with 42 years of contributions would rise slightly to €2,034.
The final changes will depend on the proposed legislation and its consideration by Parliament.
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