The major issue of pension system reform will come under the microscope of Finance Minister Makis Keravnos and Labour Minister Marinos Mousiouttas on Wednesday, as the two ministers seek to coordinate and define a unified policy approach.

As Brief writes, although pension reform falls under the remit of the Ministry of Labour and is being discussed within the Labour Advisory Board (LAB), the involvement of the Ministry of Finance is considered essential, as public finances are affected by both the first pension pillar—the Social Insurance Fund (SIF)—and the second pillar, which includes supplementary pension schemes in the public and broader public sector.

It is noted that the state is the country’s largest employer, with approximately 50,000 employees across all sectors under public employment.

In addition, the two pension funds also affect around 20,000 pensioners in the public and semi-public sector.

The Ministry of Finance therefore has a direct interest in the final shape of the pension reform. According to information obtained by Brief, a further meeting between the Ministry of Finance and the Ministry of Labour is being planned, to which the leaderships of employer and trade union organisations will also be invited.

Among the main issues to be discussed at the upcoming meeting between the two ministers and the social partners are a study aimed at improving the sustainability of the first pension pillar of the Social Insurance Fund, addressing demographic changes, ensuring fair benefits, as well as the digitisation and simplification of procedures.

A significant part of the discussion between ministers and social partners will focus on the percentage used to calculate the basic component of the pension, for which there is an intention to introduce an increase.

There is also ongoing discussion on allowing the state to cover the remaining portion of pension contributions during periods of part-time employment.

It is noted that the social dialogue on pension reform, which had been underway, lost momentum due to the protracted negotiations over the Cost of Living Allowance (COLA), mediated by the Ministry of Labour.

The Government aims to advance and submit the relevant bills to Parliament before the end of the year, with the implementation of the pension system reform planned for early 2027.