Significant pension increases are expected in 2026, with retirees receiving between €12 and €65 extra per month. The increase percentage is locked at 2.4%, though it could be higher depending on inflation trends.
How pension increases are calculated
Pension increases are calculated based on the sum of inflation and growth, divided by 2. According to data on economic performance in the first half of 2025, growth is expected to be around 2.2% to 2.3% and inflation at 2.5%.
With these projections, according to the newspaper “Eleftheros Typos,” pension increases of 2.4% emerge for 2026. The critical factor that could push the increase higher is inflation, which shows it could move to 2.8%. If this happens, pension increases will be 2.5%.
Detailed increase amounts by pension category
On an annual basis, increases will be €150 for pensions of €500, €350 for pensions of €1,250, and up to €752 for pensions of €2,600.
Depending on the pension amount, the average net increase will be:
- From €12 to €20 per month for pensions from €500 to €850
- Up to €31 per month for pensions from €800 to €1,300
- Up to €36 per month for pensions from €1,300 to €1,500
- Up to €45 per month for pensions from €1,500 to €1,800
- Up to €65 per month for pensions from €1,800 to €2,700
Example of pension increase calculation
A new retiree who retired in 2017 with 40 years of insurance and had a pensionable salary of €2,550 currently receives a pension of €1,885 gross. With the 2026 increase, the pension will be €1,930. The increase will be €45 per month gross or €543 annually.
Which retirees will receive increases
Increases will be given to 2.5 million retirees, of whom 1.9 million will see actual gains in their pockets. The remaining 600,000 will receive increases but won’t see gains, as part or all of the increase will be offset by personal differences.
Retirees receiving personal differences up to €10 will eliminate them and see net increases of €10 to €30 per month. Those with larger personal differences will reduce them without receiving increases.
The government is considering completely abolishing personal differences so that all 650,000 retirees affected by this regulation receive pension increases.
Categories of retirees entitled to increases
Pension increases for 2026 will be given to five categories of retirees. First, old retirees who were granted pensions before May 13, 2016, and whose pensions have been recalculated.
Second, retirees who were granted pensions before May 13, 2016, and whose recalculation has not been completed. Third, retirees whose pensions are not subject to recalculation, such as OGA and former Naval Retirement Fund pensions.
Fourth, new retirees who were granted pensions from May 13, 2016, onwards. Fifth, retirees who will be granted pensions from January 1, 2026, but whose payment start date goes back to December 31, 2025.
Old-age pension increases by insurance fund
Average old-age pensions with 2.4% increases from January 1, 2026, are expected to be as follows for each insurance fund.
1. For IKA retirees, pensions will reach €1,247.23 with 30 years of insurance from the current €1,218, and €567.30 with 20 years of insurance from €554.
2. For public sector employees, pension increases will bring amounts to €1,346.56 with 35 years from €1,315, with an annual increase of €378.72. With 40 years of service, pensions will reach €1,406 from €1,374, with an annual increase of nearly €400.
3. Retirees from DEKO and bank funds with 30 years of insurance will receive €2,671 from €2,609, with an annual increase of €751.39. For ETAA retirees, pensions will reach €1,287 from €1,257, with an annual increase of €362.
4. Finally, OGA retirees with 30 years of insurance will receive €659.46 from €644, with an annual increase of €185.47 for 2026.
