New Retirement Model from SGK: Higher Pensions for Longer Service

Sustainability in Social Security and MTP Goals Within the framework of the government's Medium-Term Program (MTP), a comprehensive reform package is being prepared to modernize the financial structure of the Social Security Institution (SGK).
This strategy envisions a more effective fight against informal employment and the inclusion of working groups currently outside the system.
The reform aims to adapt to new-generation working models emerging with the digitalized economy while increasing efficiency and preventing waste in healthcare expenditures.
Managing the financial burden brought by an aging population structure is one of the primary motivations behind the reform.
The "Earn as You Work" Era in Retirement The initiative aims to modify the current system's structure, which often encourages early retirement, in order to preserve actuarial balance.
The new model under consideration seeks to expand the premium base and increase the retirement pensions of those who remain in the system longer and continue to pay premiums.
This regulation is expected to provide a long-term contribution to the financial sustainability of social security by strengthening collection processes.
With the reform package, the goal is to both extend the duration employees stay in the system and ensure they reach a higher level of welfare during their retirement years.