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Pensions: No price index due to low inflation

08/07/2004 14:07
The Social Securities Services announced on Thursday that pensions will not include an Automatic Wage Indexing increase from July 1. According to the announcement released today, each July pensions are granted an increase which is equal to the increase of the consumers price index average in the first half of the year compared to the index’s average in the previous six-month period, given that this increase is equal to at least 1%.

According to the Social Services, due to the fact that the increase in the consumers price index average in the first half of 2004 stood at 0.61% (below 1%), the Social Securities’ pensions will not be granted an Automatic Wage Indexing increase.

SEK’s reaction

In the letter sent to the Labour Minister, Christos Taliadoros, SEK General Secretary, Demetris Kittenis said that it is unfair not to grant an Automatic Wage Indexing to the pensioners when the index-linked benefit is below 1% and recommended the amendment of the legislation.

“We believe that 0.99% does not differ much from 1%. This injustice must be lifted the soonest possible”, he concluded.