The government announces significant pension increases and five new financial support measures for pensioners that will take effect from November to January. The new program aims to boost pensioners’ disposable income during times of economic hardship, with the central pillar being the definitive abolition of the personal difference that will bring real pension increases for everyone.
The first payment of the new benefits will be made on November 15th with the annual benefit of €250.
Pensioners: Annual €250 benefit for 1.4 million beneficiaries
The €250 benefit will be paid every November and this year it will be received by more than 1.4 million pensioners. The amount reaches €250 for single individuals and €500 for couples, with income limits reaching €14,000 for unmarried and €26,000 for married individuals.
The benefit will be granted without age restrictions to beneficiaries of OPEKA disability benefits, pensioners of uninsured elderly, and foster parents of children with disabilities.
New pension increases up to 2.6% and abolition of personal difference
From January 2025, pension increases will range from 2.4% to 2.6%. Specifically, low pensions up to €850 will increase by €19 to €22 monthly, medium pensions (€1,300 to €1,500) by €35 to €39, while higher pensions will see increases up to €70 per month.
With the abolition of the personal difference, 671,000 new pensioners are added to the 1.9 million who already qualify for pension increases. Of these, 300,000 will receive 100% of the increase, while the rest will see 50% or a proportional percentage. From January 1st, 2027, all pensioners will receive the full percentage of pension increases.
Tax relief and increase in net income
From January, a reduction in tax withholding applies for pensioners with income above €10,000 annually, who will observe an increase in their net earnings. For pensioners with income up to €833 monthly, full tax exemption is maintained, even with the presence of a dependent family member.
Solidarity contribution adjustment for working pensioners
Approximately 120,000 working pensioners with pensions above €1,400 will benefit from the freeze on the increase of the Pensioners’ Solidarity Contribution. Those who increase their pension due to new insurance contributions will remain in the same withholding bracket, ensuring net benefit in their monthly earnings.
Retroactive amounts and pending cases
Approximately 47,000 military pensioners have already received up to €2,728.37 from reduced withholdings based on law 4093/2012. Additionally, 25,000 to 50,000 pensioners received retroactive payments up to €4,000 with 6% interest for the period June 2015 to May 2016, according to Council of State decisions.
Nevertheless, 370,000 cases remain pending in courts with delays reaching three years, while 43,000 beneficiaries still await retroactive payments from the Vroutsis law.
Economic recovery after a decade of stagnation
With the abolition of the personal difference, tax relief, and new benefits, the government aims to restore the income balance of pensioners. By January 2025, more than 2 million citizens will see substantial improvement in their income, after a decade of economic restrictions and frozen pension increases.
