Annual Pension Increase Confirmed

Pension Reforms in January 2027. Labour Minister Marinos Mousioutas has confirmed the government will increase state pensions in January 2027. This rise forms part of the statutory annual Cost of Living Adjustment (COLA). The adjustment will apply to both basic state pensions and the Guaranteed Minimum Income (GMI) support. The exact percentage will directly reflect official inflation and wage growth data from this year. This measure specifically aims to protect pensioners’ purchasing power.

Tighter Rules for Early Retirement

The Minister outlined stricter eligibility criteria for early retirement, effective next January 2027. Individuals seeking a pension before the statutory age must now demonstrate a longer insurance contribution history. This reform directly targets those wishing to retire before age 65. The government states this change ensures the long-term financial sustainability of the Social Insurance Fund and encourages extended working lives.

Boost for Parents’ Pension Credits

Minister Mousioutas announced a key reform to support parents. The Social Insurance system will award more generous contribution credits for periods spent raising young children. This change will primarily benefit individuals, often mothers, with gaps in their employment records. These enhanced credits will increase the final calculated pension amount for eligible people, recognizing child-rearing as a valuable contribution and helping to reduce the pension gender gap.

Mandatory Insurance for Self-Employed

A major change will expand social insurance coverage. From January 2027, the law will require mandatory enrolment for all self-employed professionals, including those who previously could opt out. Minister Mousioutas emphasized this step strengthens social solidarity. The reform ensures self-employed professionals build proper pension rights and broadens the contributor base for the national insurance system.

Minister’s Emphasis on Support and Sustainability

In his announcement, the Labour Minister linked these reforms to earlier measures. He reaffirmed the government’s commitment to using the COLA mechanism to support vulnerable households against inflation. The package combines immediate financial relief for current pensioners with structural reforms designed to ensure the pension system’s fairness and resilience for future generations.