In an interview with ERT, Minister of Labor Niki Kerameus outlined the content and significance of the new Social Agreement on collective labor contracts, emphasizing that it constitutes—as she described it—a historic first for Greece: a comprehensive agreement jointly signed by the government and all national social partners.
“A historic agreement” – What changes for collective labor contracts
Kerameus explained that Greece was required to submit its progress to the European Commission in December regarding the expansion of collective agreement coverage. She said the government faced two choices:
- Unilateral action — submitting a government-only plan, or
- A negotiated pact with social partners (labor unions and employer organizations).
The government pursued the second, more difficult path, resulting in an agreement that:
- Facilitates the expansion of collective labor contracts,
- Increases the number of workers covered,
- Provides greater stability for businesses, and
- Sets clearer rules for the labor market.
Response to the opposition
Addressing criticism that the agreement was rushed to avoid potential EU penalties, Kerameus dismissed the claims:
- “Anyone opposing this agreement is essentially opposing the national social partners themselves.”
- “There is no penalty from the EU; Member States are only required to submit a roadmap.”
- “This is a pact that transcends parties and political colors—a truly national effort.”
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Next steps
- December 2025: Submission of the national roadmap to the European Commission.
- Early 2026: Legislative enactment of the Social Agreement.
Pensions – “The system’s sustainability has been significantly strengthened”
Kerameus highlighted several factors contributing to the improved financial health of Greece’s pension system:
Employment growth
- Greece has 600,000 more people employed compared to five years ago.
- Unemployment has dropped from 18% to 8%, the lowest level in 17 years.
- Increased employment boosts insurance fund revenues.
Digital Work Card
The digital card has had a dramatic impact on combating undeclared labor, significantly raising contributions paid to social security.
Working pensioners
- The old 60% deduction from pensions for those who continued working was reduced to 30% and has now been abolished entirely.
- Working pensioners now receive their full pension and pay only 10% of their earnings in contributions.
- This has improved compliance and increased revenue for the system.
The Four “Good News” Measures for Pensioners
Kerameus concluded with four positive developments for pensioners unfolding from now through early 2026:
One-off €250 allowance
Already paid—one week earlier than announced—to low-income pensioners.
2.4% pension increase
This raise appears in the January pension payment, which arrives before Christmas. Total cumulative increases so far: 13.6% + 2.4%.
Abolition of the personal difference
- Reduced by 50% starting in 2026.
- Fully abolished in 2027. This means that pensioners with a personal difference will already see increases starting with December’s payment cycle.
Major tax reform
Significant reductions in tax rates that benefit all groups, including retirees.
Source: pagenews.gr