The Greek government has launched a public consultation on draft legislation designed to strengthen the country’s occupational pension system, seeking to expand supplementary retirement savings opportunities for both employees and businesses.
According to the Ministry of Labor and Social Security, the proposed reforms are intended to simplify and modernize the existing framework, making occupational pensions more accessible, flexible and attractive while strengthening protections for participants.
Labour Minister Niki Kerameus said the legislation aims to improve long-term retirement prospects by providing workers with additional pension options alongside Greece’s mandatory public pension system, while also helping businesses attract and retain employees through enhanced workplace benefits.
Three key reforms
The draft law introduces three major changes to Greece’s second pillar of the pension system, which covers occupational pension schemes.
The first is the creation of Open Occupational Pension Funds, allowing smaller businesses and self-employed professionals to participate in occupational pension plans without establishing their own dedicated pension fund. The government says the measure reflects the structure of the Greek economy, where small businesses account for a large share of employers.
The second reform overhauls the tax framework governing occupational pensions. The government plans to simplify tax incentives by linking them to a participant’s age rather than years of insurance, while also removing tax penalties for workers who join occupational pension schemes later in their careers.
The third major change introduces full portability of pension rights. Employees changing jobs will be able to transfer their accrued occupational pension rights more easily to another provider. The bill also allows entire occupational pension programs to be transferred between eligible pension institutions, with oversight by the Bank of Greece intended to safeguard participants.
Benefits for workers and businesses
The government says the reforms will increase retirement income opportunities, expand access to supplementary pension savings and improve transparency by providing participants with better information about their investments.
Businesses are also expected to benefit through stronger recruitment and employee retention tools, while smaller companies would gain easier access to occupational pension arrangements that were previously difficult to establish.
According to the government, the reforms could also support the broader economy by encouraging long-term household savings, increasing investment capital and strengthening liquidity.
The draft legislation has been published for public consultation until July 27, 2026. The government said comments submitted during the consultation period will be considered before the bill is finalized and presented for parliamentary approval.
