Can Employment in Greece Be Counted Towards a Pension in Ukraine?
As people approach the end of their working careers, they naturally begin to think about retirement and their future financial security. Upon reaching the statutory retirement age and satisfying the applicable requirements, a person may become entitled to a pension. The pension application process usually requires a number of supporting documents, including documents confirming periods of employment and insurance.
Ukraine and Greece have traditionally maintained close relations, supported by historical ties, tourism and the employment of Ukrainian citizens in various sectors of the Greek economy. As a result, an important question arises for Ukrainians who have worked in Greece and subsequently apply for a pension in Ukraine: can periods of employment and insurance accumulated in Greece be counted towards their Ukrainian insurance record?
Recognition of periods of employment or insurance accumulated abroad for Ukrainian pension purposes depends on Ukrainian legislation and the applicable international social security framework. In the absence of an agreement between Ukraine and the Hellenic Republic providing for the aggregation or mutual recognition of insurance periods, employment in Greece is not automatically counted towards the insurance record required for a Ukrainian pension. Likewise, Ukrainian insurance periods are not automatically taken into account for Greek pension purposes.
At the same time, Ukraine and Greece have concluded a Convention for the Avoidance of Double Taxation. The Convention contains specific provisions governing the taxation of pensions and other similar remuneration connected with past employment. The applicable taxation rules depend on the nature of the pension, its source and the tax status of the recipient.
Separate provisions apply to pensions received in connection with government service. Such pensions are subject to special taxation rules, and the state entitled to tax the payment may depend on factors including where the relevant government service was performed, as well as the pensioner’s residence and nationality.
It is therefore important to distinguish between recognition of foreign insurance periods for pension purposes and taxation of pension income. A double taxation convention regulates the taxation of pension payments but does not, by itself, provide a mechanism for combining Ukrainian and Greek insurance records when determining pension entitlement.
Accordingly, Ukrainians who have worked in Greece and intend to apply for a pension in Ukraine should retain documents confirming their employment, earnings and participation in the Greek social insurance system. The applicable legislation and international agreements should be checked at the time of the pension application to determine whether and how periods accumulated in Greece may affect pension entitlement.
