By Dimitris Katsaganis
An increase in the main pensions in 2023 is accompanied by the high rate of GDP growth but also the high inflation this year. This is because from January 1, 2023, the increases in the main pensions that have been calculated based on the Katrougalos and Vroutsis laws are “thawing”.
The increase from January next year will be calculated based on this year’s course of GDP and inflation.
Thus, the higher the GDP and inflation (although the increase in inflation is a negative phenomenon for the incomes of the whole society), the greater will be the increase that will be decided for the main pensions.
It is reminded that based on the Katrougalos insurance law, which is in force since May 2016, “the total amount of the pension paid is increased from 1.1.2017 per year by a joint decision of the Ministers of Finance and Labor, Social Security and Social Solidarity based on a rate that is formed by 50% from the change in GDP and by 50% from the change in the Consumer Price Index of the previous year and does not exceed the annual change in the Consumer Price Index “.
However, the previous government (SYRIZA), with subsequent provisions, as a result of negotiations with the institutions, “froze” the increase initially until 2021 and then until the end of 2022.
The Vroutsi insurance law, which was passed in February 2020, did not change the relevant provision, although based on the decisions of the SC against the Katrougalos law, it brought an increase in the main pensions of those who have more than 30 years of insurance.
This means that the time for the implementation of the relevant provision is approaching in almost ten months from today, ie in December 2022, as the pensions are paid each month “against”, at the end of the previous one.
Thus, for the “old” retirees with more than 30 years of insurance, ie for those who retired before May 2016, their negative personal difference was reduced, between the recalculated (according to the Vroutsi law) and the paid pension.
The increase in pensions under the Katruggalo law will lead to a corresponding reduction in their negative personal difference. Thus, as each year (if this is allowed by the course of GDP and inflation) there will be an increase in pensions, the personal difference will decrease faster and the real – and not the “accounting” – increase will come faster.
“Accounting” increase – through the reduction of the negative personal difference – will have other “old” retirees with less than 30 years of insurance.
Two other categories of retirees will have a real increase. The first belongs to the “retirees”, who after the recalculation of their pension (either with the Katrougalos law or with the Vroutsis law), received increases in their paid pensions, to the second belongs to the pensioners who retired after May 2016.
According to the latest forecasts of the Commission (10/2/2022), GDP this year will increase by 4.9%, while inflation will run at a rate of 3.1%. If these forecasts are verified, then the rate that will be co-formed by GDP and inflation will “show” a 4% increase in pensions in 2023.
Source: Capital
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