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This weekend will be decided exactly what it means an increase in the retirement age. The ministry of employment waited for the return of Prime Minister George Papandreou from India, who made a statement regarding the increase in the age limit for the people working in the public sector just before he left.

Currently the ministry of employment avoids making official statements, however they defiantly reject the unification of the pension-security pay desks and the bill is expected to be introduced for voting in April.

Most probably the government will discuss for the first time the taboo matter, according to which after a 35 years length of service and no matter of the age of the employee he is entitled to a pension. According to the new measures the length of service will be increased to 40 years.

It is also discussed that the age limit will be also increased to 67 years old, which is gradually applied in all the rest of the European countries. According to experts from the ministry of employment and social affairs these regulations will not affect the working people who have entered the labor market before the year of 1993. It is definite however that the law will be applicable for all people who are employed from now on in the public as well as in the private sector.

From the central office of the government are expecting the respective announcements by the ministry of social affairs and are studying the opportunities for political management of the subject as Greece has some bitter experience from 2000 when the government of Kostas Simitis made such an attempt for the increase of the age barrier.

In relation to this the associates of Mr. Papandreou will try to justify the reform with the bad economic situation of the country and with the fact that in the long run this reform will be a breath of fresh air for the pension-security pay desks. According to the logic of the government the demographic picture in the country does not provide for too many alternatives for half way inconclusive measures and it is necessary to make a reform which will be as effective as possible. Aside from this for all people who continues to work after they reach the necessary retirement age there will be an increase of the pension with 2,5 to 3,5% annually.

The next step of the Ministry of employment will be to equalize the age limits for retirement between men and women. According to the latest information there will be a period of transition of two years in order to start the application of this regulation when it will be put in action. One of the motivations to keep the women at work for a longer period of time is the increase of their pensions.

The public sector employees will be directly affected by the regulation according to which their salaries will be frozen at the level at which they were as of December 31^st, 2008. In the last year there were no increases of the main salary, however the government will pay supplements at a single payment, which were not added to their incomes. Apart from this the supplements for the employees in the public sector will be cut by 5% - 20%, which amount at up to 30% - 45% of their main salary. An exception will be made for the family allowance. Because of this the public sector employees announced a strike throughout Greece for the next week on February 10^th.