Greece's government yesterday unveiled a hike in the average retirement age and called on striking civil servants to accept bonus cuts to pull the country out of an unprecedented financial crisis.

Labour Minister Andreas Loverdos said men and women will retire at 63 on average in a bid to save Greece's cash-strapped pensions system, as other ministers met for a second day to finalise the country's new tax policy.

"There will be a two-year increase of the limits on the average rate of retirement... namely 63 years on average for men and women by 2015," Labour Minister Andreas Loverdos told reporters after a ministry meeting.

"We are changing the pensions system in order to keep it alive," he said. The maximum retirement rate is currently 65 for men and 60 for women, and Greece is under pressure by the European Union to bridge the gap.

The minister also pledged to bring an end to voluntary retirement schemes that have cost the cash-strapped state dearly.

The pension reform is part of a cost-cutting plan by Greece's hard-pressed Socialist government which is struggling to slash a debt mountain expected to hit over 290 billion euros (396 billion dollars) this year.

Greece's main private sector union GSEE is staging a nationwide strike on February 24 in opposition to the pension reform. Thousands of civil servants targeted for bonus cuts are holding another one-day strike today.