The goal is for the 2023 increases to be paid – finally – with the January pensions, i.e. at the end of December close to the Christmas holidays. However, if this does not become technically feasible, the next goal is to pay the increases with the February pensions, at the end of January
The acceleration of the payment of increases in pensions is being considered by the government. The goal is for the 2023 increases to be paid – finally – with the January pensions, i.e. at the end of December close to the Christmas holidays.
However, if this is not technically feasible, the next goal is to pay the increases with the February pensions at the end of January (the pensions are paid in advance).
It is recalled that the basic scenario in the previous months predicted that the increases would be paid in the first 3 months of 2023, after the size of the annual GDP increase for 2022 had been finalized in March.
However, as inflation runs at high speeds and “gnaws away” at the incomes of pensioners as well – most of whom have no other way to increase their income – the opinion prevails within the government and the economic staff that the increase should come earlier with “temporary” elements and afterwards to make a small correction, if and when necessary.
As the Minister of Finance, Christos Staikouras, said today in his televised interview: “We will see how the budget estimates will be in the next 2 weeks, and on the basis of these, the increases of 2023 will probably arise.”
In the first 10 days of November, the October inflation will be on the table, while within November and until November 20, the final draft of the budget will have to be submitted to the Parliament.
According to “H” information, there is a legislative proposal on the table, which will enable EFKA to calculate the increases based on the most “official” data that will be available towards the end of the year in terms of growth and inflation , i.e. the two variables that solve the puzzle of the amount of pension increases.
The aim is to describe the equation – without changing its essence at all – in such a way that it brings pension increases closer to today.
Currently, the draft budget projects growth of 5.3% and inflation of 8.8%. Given the equation for increases that will not change, that results in a 7% increase.
The Minister of Finance, today estimated that the increases will be over 7%, as it is estimated that the level of annual inflation as well as growth is likely to increase.
It is not excluded that the relevant legislation will be submitted to the Parliament in the coming days. After its passing, a ministerial decision will follow, which will define the rate of increase in pensions, so that the payment will follow.
However, because in December there are many payments from the EFKA with the dominant accuracy check to the low pensioners, there is a possibility that the payments will be made in January for technical reasons. It is also recalled that an increase in pensions has not been implemented and paid for many years, more than 10 years.
In any case, the payment of the increase – whenever it is made – counts from January 2023. That is, whenever it is paid it will concern the period from January onwards. Therefore, if it is paid within December with the January pension, there will be no retroactive payments, as it will be paid on time.
If it is paid at the end of January with the February pensions, there will be retroactives of one month, that is January, which will not have been paid on time.