Pensions: These are the final amounts after the increases – Detailed table – Newsbomb – News

Pensions: These are the final amounts after the increases – Detailed table – Newsbomb – News
Pensions: These are the final amounts after the increases – Detailed table – Newsbomb – News

The nominal percentage of the increase that will be granted to pensions from January 2023 will result, in accordance with Law 4670/2020, from the sum of the growth rate and inflation of 2022, by 2.

Percentage increases of 5.5% to 13.3% will be received in the net amounts of their monthly earnings by approximately 1,000,000 pensioners, who are expected to be most favored in 2023 by the government’s decisions to grant increases in the nominal gross amounts of pensions and at the same time to abolish the special solidarity levy, which is charged to those who receive monthly amounts greater than 1,000 euros.

The nominal percentage of the increase that will be granted to pensions from January 2023 will result, in accordance with Law 4670/2020, from the sum of the growth rate and inflation of 2022, by 2.

Estimates

According to the estimates of the co-competent Ministries of Finance and Labour, the percentage of increases that the government will grant to pensions from January 1, 2023 is expected to be close to 7%. The reason is that with the frenzied pace at which the prices of basic goods and services are now rising, inflation at the end of this year is now very likely to average close to 9%. In addition, it is predicted that the growth of the Greek economy may reach 5% this year. Therefore, the pension increase for 2023 is now estimated to be around 7% (half of the sum of 9%+5%).

In addition, in 2023 there will be increases in certain pensions also due to the abolition of the special solidarity levy from next January, which the government decided. At the moment, the special solidarity levy is charged at rates ranging from 2.2% to 10% on annual taxable income from pensions greater than €12,000 or €1,000 per month. Pensioners with annual taxable pension amounts of more than 20,000 euros are burdened the most, for whom the solidarity contribution ranges between 5% and 10%. Therefore, for a large number of pensioners who receive annual pension amounts of more than €20,000, the increases in their net pensions (in the amounts they receive “in hand” after deduction of deductions) are expected to be greater than 7% and even reach to levels higher than 10%, 11%, 12% or even 13%.

Who will retire with less debt?

Detailed example tables that we publish show, in particular, that a nominal pension increase of 7% will lead to net pension amounts, i.e. the amounts received “in hand” by pensioners, to levels higher by 5.5% to 13.3% . The fluctuations in the increases in the net amounts are large due to the fact that, as we have already mentioned, a portion of pensioners will benefit not only from the nominal increases of 7%, but also from the increases that will arise due to the abolition of the monthly deduction of the special contribution solidarity. It is observed, in particular, that those pensioners who receive annually taxable pension amounts greater than 20,000 euros or higher than 1,667 euros per month, will receive increases in their net pension amounts higher than 7%, which may reach up to 13.3% for the few who receive very high pensions. By contrast, those pensioners with annual taxable incomes of less than €20,000 who receive nominal 7% increases will see their net monthly earnings (the amounts they take ‘in hand’, which results if tax deductions are deducted from taxable amounts) increase by percentages less than 7%, and specifically from 5.5% to 6.8%. A part of the nominal increase of 7% will be absorbed by a higher percentage increase in monthly income tax deductions, which will be caused by the increase in the monthly amount of the pension, but also by the non-indexation of the tax scale, i.e. keeping the brackets the same levels with those of 2022, and not their readjustment based on the 2022 rate increase.

X-ray

It is noted that more than 1,000,000 pensioners are estimated to be the highest earners in 2023, as from this year they will come into force:

* the nominal increase in the gross amounts of pensions based on Law 4670/2020, which will be calculated at half the sum of the average annual inflation and the annual growth rate of the year 2022, and as we have already mentioned is expected to be finally close to 7% . The 7% increase will be granted to all gross (gross) amounts of main pensions, in accordance with Article 25 of Law 4670/2020 (Vroutsis Law), which revises Article 14 of Law 4387/2016 (Katrougalos Law) and provides that from 1/1/2023, pensions are unfrozen and increases are given (the first after a 12-year Memorandum) based on inflation and the growth rate of the economy,

* the abolition of the special solidarity levy that is withheld every month at rates from 2.2% to 10% of all monthly taxable pension amounts that exceed 1,000 euros

Particularly winners will be, among others, 280,000 old pensioners (before May 2016) with 30 years of insurance and more, who had a pension recalculation and got an increase by zeroing out the personal difference. Those who left after May 2016 with 30 or more years of insurance have no personal difference and will also get the full 2023 increase, while if their income is above the solidarity levy threshold, they will also benefit from its abolition .

See the detailed table:

Source: eleftherostypos.gr


The article is in Greek

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