The Labor Ministry’s bill, titled “Strengthening occupational pensions: more options for workers and businesses, expanding supplementary retirement savings choices,” was put out for public consultation yesterday.
The draft law will remain open for feedback until July 27, 2026, and is set to be submitted to parliament in the fall.
The bill aims to improve the existing framework for occupational pensions, making it simpler, more functional, more protective, and more attractive for both workers and businesses.
On taxation, which had been a sticking point for the parties involved, it has been agreed that tax rates (currently up to 20% at the top bracket) will be significantly reduced, though final decisions haven’t been locked in yet, as talks with stakeholders continue.
At the same time, the bill introduces “Open Funds,” portability, and simplified procedures, while also establishing a Group Occupational Pension Insurance Product, meant to serve as a counterweight to existing Occupational Insurance Funds (TEA), operating under the same rules.
Three Key Changes
The draft law introduces three major changes:
The first major change is the introduction of Open Occupational Pension Funds, meant to make it easier for smaller businesses and self-employed professionals to access occupational pensions. This need reflects the structure of the Greek economy, where a large share of businesses are small, with a limited number of employees, making it hard for them to set up a standalone Occupational Pension Fund.
The second major change involves streamlining the tax framework, making occupational pensions more attractive for workers and businesses alike. The bill improves tax incentives by decoupling them from years of contributions and linking them instead to the insured person’s age, in a simpler and more functional way.
The third significant central intervention concerns full portability of rights, so that changing jobs or employment status doesn’t result in the loss or weakening of already secured pension rights.
