Statutory Old Age Pension Scheme

Mandatory insurance

• The entire workforce, namely all employees and self-employed individuals as well as agricultural workers. 

Voluntary insurance/opting out/opting in

• There are no options for voluntary insurance or opting in/opting out of mandatory insurance in this scheme.

General finances

• National pension: entirely tax-financed out of the state budget.
• Contributory pension: PAYG-financed from insurance contributions of the currently insured population; since 2015, there are no fixed contributions out of the state budget.*

Contribution rates

• Fixed share (20%) of monthly gross earnings. 
• Contributions shared between employee (10%) and employer (10%).
• Special contribution regulations for self-employed and agricultural workers.
• Unemployed persons: a max. of 300 days of unemployment recognizable as notional insurance period; long-term unemployed persons can make voluntary contributions until five years prior to retirement.

*Pension benefits granted up until 1 January 2015 were financed on a tripartite basis, i.e. by employee and employer contributions, regular and additional state subsidies, as well as resources gained from the optimal use of the assets controlled by the public pension funds.

• Benefits are provided by the digital Unified Social Insurance Fund (e-EFKA).

Qualifying conditions

National pension

• Statutory retirement age is 67 with minimum insurance period of 15 years; 20 years of insurance period required for full ‘national pension’.
• Persons must have resided in Greece for a minimum of 15 years (between the age of 17 and 67); 40 years of residence required for full ‘national pension’.
• Benefits are not means-tested.

Contributory pension

• Standard old age pension: the statutory retirement age is 67 years with minimum insurance period of 5 years (insured after 2002).
• Persons are also entitled to full pension at the earliest age of 62 with a minimum insurance period of 40 years (12,000 contribution days).
• Special conditions apply to persons in hazardous jobs: retirement age is 62 with a minimum contribution period of 17 years. 

Early retirement

• Available at age 62 for persons with a minimum contribution record of 15 years (age 60 for persons in hazardous jobs with a minimum of 105,000 contribution days, of which 7,500 days have been worked in an arduous and unhygienic profession (AUP)); with negative (permanent) adjustments (i.e. benefits are reduced by 1/200 of the full pension for each month pending the reaching of the age of 67).

Deferred retirement

• Generally, it is not possible to defer retirement; retirement can only be deferred without positive adjustments to pension benefits (for persons first insured after 01/01/1993 or persons with vested pension rights after 01/01/2011).

Combining employment & retirement

• Employment after retirement is possible, but subject to certain restrictions. 
• If the pensioner is above the age of 62 and claims pension benefits next to employment (starting after 01/03/2020), benefits will be reduced by 30% independent from the amount of income achieved through employment; the whole amount of the pension benefit is withheld if the pensioner (first insured before 1983) is below the age of 62.

Pension benefits

National pension

• Full flat-rate benefit for persons with a 20 years’ contribution record and 40 years of residence in Greece (EUR 384 per month/person in 2020); proportionate reduction for shorter residence periods; minimum amount: EUR 345.50 per month/person.

Contributory pension

• Primarily based on the amount of contributory earnings throughout working career.
• Maximum amount: EUR 5,900/month (incl. national pension benefits). 
• Minimum amount: no minimum amount (see ‘national pension’). 

Factors for benefit calculation

• The total amount of pension allocation is determined with reference to the earnings record, the contribution record and the accrual rate.
• The estimated accrual rate ranges between 0.77% and 2.5% of individual earnings.
• Adjustments: The earnings are adjusted yearly according to a sustainability principle, which is adjusted in accordance with the annual earnings registered in the social security scheme to the consumer price index (inflation).
• The replacement rate is set at about 34% for 35 years of insurance and 41% for 40 years of insurance; replacement rates are adjusted yearly by legislation following consultation with the Hellenic Statistical Authority (ELSTAT) and the National Actuarial Authority (EAA).

Taxation and social security contributions

• The tax allowance is set at EUR 5,000 per year for pensioners below the age of 65, and EUR 9,000 for pensioners above the age of 65; pensioners receiving more than EUR 750 in pension income per month are obliged to pay taxes.
• Contributions to the health insurance system are mandatory.
• A solidarity contribution fee exists for old age pension benefits of more than EUR 1,400/per month; an extra solidarity contribution applies to pensioners below the age of 60 with a monthly pension income of more than EUR 1,700.