An insurance provision that will “freeze” the Solidarity Contribution for Pensioners (EAS) in cases of working pensioners who receive or are about to receive an increase in their pension due to the inclusion of insurance contributions during their employment is included in the labor bill titled “Fair Work for All: Simplification of Legislation – Support for Workers – Protection in Practice.” The bill will be released for public consultation within July and submitted to Parliament in the fall.
The provision will “correct the distortion” where a pension increase could lead to a decrease in the final amount received by the beneficiary—either because the pensioner enters the first tier of the Solidarity Contribution or because their tier changes.
This issue potentially concerns more than 230,000 pensioners who have declared through the designated platform that they continue to work. In practice, however, it affects fewer individuals since around 100,000 pensioners are low-income farmers, who are exempt from contribution payments and therefore are not eligible for pension increases. Additionally, even fewer receive pensions over €1,400 and are subject to EAS withholding.
For example, if a pensioner’s income after the increase exceeds €1,434 (based on the 2025 scale), their contribution tier will remain unchanged. It is noted that the Solidarity Contribution is applied progressively and ranges from 3% to 14%, depending on monthly income from main pensions.
At the same time, overtime pay increases provided in Collective Labor Agreements will be exempt from insurance contributions, as will voluntary increases given by employers—provided they are higher than those mandated by law. For example, if a business grants its staff an 85% Sunday work wage increase instead of the 75% required by law, the contribution exemption that applies to the 75% will also extend to the additional 10%.
The draft law focuses on simplifying procedures for hiring and termination, as well as enhancing flexibility in the labor market.
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