How is the pension calculated?
The pension is calculated based on the basic pension and the supplementary pension.
It is determined by quadrupling (x4) the weekly basic insurable earning (See column 4 of “Table 1”), and then multiplying it by 60%. Pensions are readjusted every year based on the increase of insurable earnings and the price index. In the case that an insured person has one, two or three dependants, the basic pension increases to 80%, 90% or 100% respectively.
For 2021, the basic pension is €442 if the pensioner is entitled to it in full.
From the units accumulated during the years of work, one unit is deducted for each year of work and the balance is multiplied by the basic insurance earnings of €9,566 (for 2021) and by 1.5% to calculate the annual proportional pension. The annual proportional pension is divided by the number 13 (due to the 13th pension) to calculate the proportional monthly pension.