mentary pensions changes, providing for new
replacement ratios, lower than those of the exist-
ing system. Primary replacement ratios will range
from 11.55% to 42.85% of a worker’s salary, for
15 to 40 years of work. Supplementary replace-
ment ratios will stand at 0.45% of average
earnings for every year of work.
Replacement ratios are comparatively low for
people with many years of work, whereas
there is a bonus for people with less than 25-
27 years of work.
4. Introduction of a national pension, which will
not correspond to the contributions paid, but
will be covered through tax revenues. It will
amount to 384 euros and will be paid in full
either at the age of 62 after 40 years of work,
or at the age of 67 after 20, instead of 15,
years of work. The national pension will also
be paid in full to people establishing complete
pension rights, such as people under 62 years
of age after 37 years of work. People retiring
after 15-19 years of work will receive less, as
Trade with Greece
76
the 384 euro pension shall be reduced by 2%
for each year of early retirement.
Contributions for practitioners
and freelance professionals
Article 39 provides for reduced contributions for
young practitioners and economists insured with
the Social Insurance Organisation of Freelance
Professionals (OAEE). In accordance with this
article, as of 1/1/2017 the primary pension contri-
bution rate will stand at 14% of income for the first
two years after first entry into the system, 17% for
the next three years, and 20% after the 5th year
since first entry into the system.
This amount, however, will be paid back into the
system, as the same article stipulates that the
total difference from the 20% monthly social secu-
rity contribution during the 5 first years of work is
a pension obligation, which will have to be repaid
until retirement and is calculated on the basis of
the monthly income, augmented by the annual
increase in wages, as defined by ELSTAT.
The new pension reform is one of the measures included in
the 5.4 billion euro package that will be implemented in the
three-years 2016, 2017 and 2018.
”
“
