By S. Papapetros
[email protected]
The number of Greek pensioners and beneficiaries to be affected by the latest round of austerity cuts and higher social security contributions will reach into the millions. For the former, the next round of major cuts comes as of Jan. 1, 2019.
Specifically, a cut in the so-called "personal difference" looms as the biggest cause for the latest reduction of social security benefits in bailout-dependent Greece.
"Personal difference", in this case, refers to a recalculation of primary and supplementary pension rates based new laws passed in successive memorandums.
The reduction, in this case, can affect a maximum 18 percent of a beneficiary's monthly benefits. The measure will affect no less than 1.1 million Greek pensioners.
Some 120,000 beneficiaries that retired after May 13, 2016 or will retire by Dec. 12, 2018 will also lose up to 18 percent of their monthly payment, based on the "personal difference" recalculation.
Cuts in supplementary pensions will affect 180,000 beneficiaries, while reductions in welfare benefits funneled towards lower-income households will affect 250,000 pensioners.
The abolition of a monthly bonus for low-income pensioners will occur in phases, with the bonus disappearing at the end of 2019. The measure will has already affected roughly 50,000 beneficiaries and will lower monthly payments for another 230,000 when finally cut.
Even more worrisome is the effect of higher social security contributions on the active portion of society, with approximately 1.4 million self-employed professionals, merchants and farmers called on to turnover more money to pension funds on a monthly basis.
