Computers catch fire for those trying to figure out what pension they will get if they submit their papers. The "general rule" is this:
The pensionable earnings are based on the average gross monthly earnings of the insured by 2002 until the month before retirement (e.g. 2002-2020) on which insurance deductions of the main pension branch were made. The months are calculated on 14 salaries due to Gifts. The average comes out of the sum of wages for the months of insurance from 2002 and after.
For example, from 2002 up to 2020 is 252 salary months (with the Gifts). If wages in these months add up 360.000 euro, then the average monthly salary is 1.428,57 euro (360.000/252=1.428,57). The 1.428,47 Euros are the pensionable earnings that will be calculated with the replacement rate corresponding to the total insurance years.
If we are freelancers, we put "insurable income" in place of "pensionable earnings"., that is, the average monthly income corresponding to the contributions paid by 2002 until retirement.
The insurable monthly income results from the sum of all the monthly contributions from 2002 for months (in this case it is 12 months a year without Gifts) and then through it 0,20. For example, freelancer who paid from 2002 up to 2020 (for 216 months) total contributions 80.000 euro, means that he had an average monthly contribution 370,37 euro (80.000/216=370,37). This contribution corresponds to an average monthly income 1.851,55 euro (370,37/0,20=1.851,55), which are his pensionable earnings.
Example of calculation:
- Employee with 35 years, 8 months and 10 insurance days and pensionable earnings for years 2002-2020 in 1.380 euro, will receive a final pension under the new law 923 euros gross, while with the Katrougalos law it would take 866 euro. The increase from the Vroutsi law is 57 euros per month.
- Freelancer with 35 years, 8 months and 10 insurance days and pensionable earnings for years 2002-2020 in 1.723 euro, will receive a final pension under the new law 1.057 euros gross, while with the Katrougalos law it would take 986 euro. The increase from the Vroutsi law is 71 euros per month.