The retirement pension is calculated in accordance with the Social Protection Law based on 2% annual entitlement x years of service x salary provided that the result shall not be less than the cash payment once the conditions for entitlement are fulfilled.
The salary considered in the formula is different for the service years prior to the 1st of January 2024 compared to the salary considered for the periods of service post this date.
- The last salary is used for the previous years of service before the provisions of the Social Protection Law come into force with the same definitions set forth in the previous laws. However, the last salary drawn must be re-evaluated as of 31 December 2023 until the date of retirement of the insured person.
- However, for the years of service from the 1st of January 2024 until the retirement of the insured person, the average future value of the salaries during that period shall be used to calculate the pension. The average future value of the salaries considers the salary used for the payment of contributions to each year of service and re-evaluates the salary until the date of retirement to sustain its real value.