Pension increases of 2.4% from January 1, 2025, wage increases for public sector employees from April 1, 2025, reductions in social security contributions, a reduction in the solidarity contribution, and a Christmas bonus for 1.9 million citizens are forecast in the state budget.
Details:
The 2.4% increase, which will be credited to pensions in January (paid at the end of December), raises the average pension from 816 euros to 835.5 euros (+20 euros), while the pension of 1,000 euros will rise to 1,024 euros.
The national pension will increase from 426.17 euros to 436.3 euros, and the basic pension for former OGA (Rural Insurance Organization) members will increase from 399.54 euros to up to 409.12 euros.
In general, lower pensions of 500 to 600 euros will increase by up to 15 euros per month. Medium pensions from 1,000 to 1,500 euros will increase on average by 30 euros per month, while higher pensions, from 2,000 to 3,000 euros, will rise by 50 to 75 euros per month.
The maximum limit for main pensions, from 5,114 euros, will rise to 5,252 euros.
Public and Private Sector Wages
According to the budget forecasts, a new across-the-board increase in the salary scales of all public sector employees is planned from April 1, 2025, based on the increase in the minimum wage (about 20 euros for all employees).
Currently, the basic salary in the public sector is 20 euros more than in the private sector, at 850 euros. If the minimum wage rises by 40 euros from April 1, 2025 (from 830 euros to 870 euros), the starting salary for new employees will receive the 20 euros adjustment to equalize with the private sector, and from 2026, the increase will be the same for both sectors.
Thus, an employee who currently earns 1,000 euros will earn 1,020 euros starting from spring 2025. An employee who earns 1,200 euros will earn 1,220 euros, and so on.
From January 1, 2026, the increase in the public sector will match the increase in the private sector, meaning that all salaries will rise by 40 euros per month.
The goal is for the entry-level salary to reach 950 euros by January 1, 2027.
Social Security Contribution Reductions
From January 1, 2025, employee social security contributions to EFKA (Social Security Fund) will decrease by 0.5%, and the same reduction will apply to employer contributions.
Total contributions will be set at 35.16%, down from the current 36.16%. This means 13.37% for the employee and 21.79% for the employer. The reduction will come from the health care package and will not affect the contributory insurance for main and supplementary pensions.
Currently, health insurance contributions are 2.55% for employees and 4.55% for employers, totaling 7.10%. A reduction of one percentage point will bring the total health insurance package to 6.10%. The reduction will be shared equally between employees and employers. In this case, the employee’s health insurance contribution will drop to 2.05%, and the employer’s to 4.05%.
For example, an employee with a gross salary of 1,000 euros currently pays 71 euros in health contributions (combined with the employer’s contribution). These contributions will decrease to 61 euros, resulting in a benefit of 120 euros annually, evenly split between the employer and the employee.
This means the employee’s net benefit will be 5 euros per month, or 60 euros per year, as an increase in their net salary.
By December 22, the Christmas bonus will be paid to 1.9 million beneficiaries. Specifically, for household support and vulnerable groups, the following provisions apply:
- 243 million euros in bonuses will be paid in December 2024 to 1.9 million beneficiaries, including pensioners, uninsured elderly people, and recipients of OPEKA benefits. Specifically:
- 100 to 200 euros will be received by approximately 700,000 pensioners who will not receive the annual increase because their personal difference is greater than 10 euros.
- The bonus breakdown is as follows:
- 200 euros for a pension up to 700 euros
- 150 euros for a pension from 700.01 euros to 1,100 euros
- 100 euros for a pension from 1,100.01 euros to 1,600 euros
An additional emergency assistance of 200 euros will also be given to beneficiaries of:
- Disability benefits from e-EFKA
- Disability benefits for pensioners from the former OGA who only receive the basic pension
- Disability and incapacity benefits for public sector pensioners
- Extramural allowances granted by e-EFKA
- Disability allowances from OPEKA
- Uninsured elderly people.
- An additional monthly installment will be given to the recipients of the child benefit from OPEKA. For instance, families with 4 children who belong to the first category of beneficiaries will receive 420 euros.
- Recipients of the Minimum Guaranteed Income will also receive an additional 50% of the monthly allowance.
