Greece pushes occupational insurance reform with tax‑break incentives

The Greek Ministry of Labor and Social Insurance has presented a draft law to strengthen the country’s pension system by adding a voluntary second pillar of professional (occupational) insurance. Pavlos Chrysidis, the PASOK labour and social security spokesperson, stressed that the second pillar can only complement, not replace, the public first‑pillar system and cited examples from the Netherlands, Denmark, Sweden and France where similar schemes exist.

Under the proposal, employees may allocate a portion of their salary to a professional insurance fund. Contributions are deducted from taxable income, granting a tax credit ranging from 9 % to 44 %. The collected money would be invested in mixed mutual funds, exposing participants to bond and equity market risk, with the aim of building a capital pool that can be drawn as a lump‑sum or an annuity at retirement. The reform seeks to address the declining average pension, which is projected to fall below €900 by the first half of 2026.