Kerameos Ends Years of Uncertainty: Widow’s Pensions Protected, Two National Pensions Preserved

The Greek government moves to permanently abolish the post-three-year reduction in widow’s pensions, eliminate the risk of retroactive repayments, and preserve the payment of two national pensions where separate entitlement rights exist. Labour Minister Niki Kerameos also unveiled a broader labour reform package focused on pay transparency, equal pay and social security sustainability.

The Greek government has announced one of the most significant social security interventions in recent years, aiming to resolve a long-standing issue affecting thousands of widow pension beneficiaries.

Addressing Parliament, Labour and Social Security Minister Niki Kerameos confirmed that legislation will soon be introduced permanently abolishing the reduction in widow’s pensions after the initial three-year period for beneficiaries covered under the existing pension framework introduced by the so-called Katrougalos Law.

The upcoming legislation also removes any obligation for beneficiaries to repay retroactive amounts linked to reductions that had never been implemented, while ensuring that individuals entitled to two national pensions through separate legal rights will continue receiving both in full.

Widow’s pensions to remain at 70% permanently

The reform eliminates one of the most controversial provisions of Greece’s pension legislation, which allowed widow’s pensions to be reduced after three years under certain conditions.

According to Kerameos:

“All widow’s pension beneficiaries covered by the current legal framework will continue receiving 70% of the deceased spouse’s pension after the three-year period, without any reduction to 35%. They will owe no retroactive payments, and beneficiaries entitled to two national pensions will continue receiving both.”

Those whose pensions had already been reduced will see their benefits restored to 70%, while beneficiaries expecting future reductions will no longer face any cuts.

Economic performance finances the reform

The government argues that the measure is supported by stronger-than-expected financial performance within Greece’s social security system rather than by temporary fiscal expansion.

Kerameos noted that the Ministry of Labour exceeded its medium-term fiscal targets by approximately €800 million last year. Furthermore, during the first four months of 2026 alone, social insurance funds have already surpassed revenue targets by €517 million.

According to the minister, much of this improvement stems from the nationwide implementation of the Digital Labour Card, which now covers approximately 2.5 million employees, strengthening compliance and increasing declared employment.

The government presents these additional revenues as creating fiscal space for targeted social policy measures while maintaining the long-term sustainability of the pension system.

“A long-standing issue is finally resolved”

Kerameos described the reform as the definitive settlement of an issue that had created prolonged uncertainty for thousands of families.

“This reform permanently closes an issue that remained unresolved for many years. Thousands of widow pension beneficiaries are released from a prolonged period of uncertainty. Legal certainty is restored, and families who have already suffered the loss of a loved one receive greater protection.”

The government maintains that the reform strengthens social protection without undermining fiscal discipline, arguing that it is made possible through stronger economic growth, higher formal employment and improved efficiency within the social security system.

Equal Pay Reform: Transparency becomes mandatory

Alongside the pension announcement, Kerameos presented legislation implementing the European Directive on equal pay for equal work or work of equal value.

The minister emphasized that the bill goes beyond the formal transposition of EU legislation by introducing practical transparency mechanisms into Greece’s labour market.

Key provisions include:

• salary ranges disclosed before recruitment;
• employees gaining access to average pay levels by gender for comparable positions;
• mandatory objective pay structures;
• enhanced labour inspections and judicial protection against discriminatory pay practices.

The government argues that these measures aim to strengthen transparency, meritocracy and equal treatment across the labour market.

Labour market indicators

Kerameos also highlighted recent labour market performance, presenting it as the foundation supporting the government’s reform agenda.

According to figures presented in Parliament:

• more than 563,000 new jobs have been created since 2019;
• unemployment declined to 8.1% in May 2026, its lowest level in 17 years;
• the statutory minimum wage has increased by 41.5%;
• the average monthly salary now exceeds €1,500;
• Greece’s gender pay gap remains at 13.4%, compared with an EU average of around 11%.

The minister argued that while substantial progress has been achieved, additional structural reforms remain necessary to eliminate persistent inequalities.

Correction of a long-standing public sector imbalance

The legislative package also includes the inclusion of public-sector nurses, assistant nurses, ambulance drivers and emergency medical personnel working in the National Health System (ESY) and the National Centre for Emergency Care (EKAB) under Greece’s Hazardous and Heavy Occupations regime.

According to the government, the measure eliminates a disparity that had existed for more than three decades between comparable public and private sector healthcare professionals.

Political and economic significance

Taken together, the pension reform, labour market transparency measures and healthcare workforce provisions reflect a broader government strategy linking economic performance with targeted social policy initiatives.

The administration argues that stronger employment, higher social insurance revenues and digital reforms are generating the fiscal capacity to expand social protection while preserving budgetary stability.

Whether these reforms ultimately achieve their intended social and economic objectives will depend on their implementation and long-term fiscal performance. Nevertheless, the abolition of the planned widow’s pension reduction represents a significant policy shift for thousands of beneficiaries, ending years of legal uncertainty while reinforcing the government’s broader labour and social security reform agenda.

Source: pagenews.gr