The basic pension rate is set to rise by nearly 4% from the new year, as announced by the Minister of Labor and Social Security, Yiannis Panagiotou, in his speech at the 24th Session of the Council of Elders.

As he stated, the last meeting of the Council of Ministers, utilizing the provisions of the Social Insurance Fund (SIF) legislative framework, decided to increase the basic pensions by almost 4% from the new year. This, he noted, demonstrates that over the years, the structure of the SIF has allowed for a continual, gradual improvement in pensioners' benefits in line with economic data.

The government is expected to issue a related decree for the pension increase next week and will make corresponding announcements.

Additionally, Panagiotou mentioned that a key goal of the government is the pension reform of 2025. This reform, developed through social dialogue and based on scientific data, aims to further improve the pension system. It incorporates internationally accepted best practices and recommendations from the International Labor Organization and the country's Economic and Competitiveness Council.

He also noted the government's response to pensioners' expectations by already accelerating the period from reaching the age of 65 to when the statutory pension begins to be paid. This process, he added, will be extended by the end of the year to those retiring before the age of 65.

Regarding the 12% actuarial reduction for early retirement, the government has conducted a study to propose a variation, ensuring the SIF's sustainability without increasing employee contributions. A related proposal has been formulated and is currently being discussed with social partners, with further decisions to be made based on future possibilities.

Regarding the institutionalization of a widower's pension, instructions have been issued to assess the cost to the SIF, enabling men who were widowed before the 2018 legislation to also access this benefit.

Finally, he emphasized the government's responsibility to carefully assess its capabilities before making any decisions, to avoid "gambling with our economy and experimenting with the SIF."