Speaking to Sto Kokkino FM radio station on Thursday, Labour Minister Giorgos Katrougalos admitted that the government may have to make deeper cuts to pensions than it had wanted.
Greece’s lenders stressed on Wednesday that they will not accept the 1.5 percentage point increase in social security contributions, needed to produce the fiscal results for a sustainable pension system.
The Labour Ministry is now set to adopt an alternative plan that will see significant cuts to auxiliary pensions implementing a mechanism that will lead to immediate cuts to pensions if the social security funds post a deficit.
There is also a possibility the ministry’s plan could see supplementary retirement pay being slashed by as much as 20 per cent affecting auxiliary payments even below €170 a month.
Katrougalos suggested that anyone earning more than €1,300 per month in total from their main and supplementary pensions is likely to face a reduction.
“There will be no cuts to main and auxiliary pensions that add up to less than €1,300,” he said.
“We guarantee that, no matter what.”
