Annual increases ranging from €220 to €560 will be granted to 671,000 retirees following the full abolition of the personal difference supplement, which takes effect on January 1, 2027 — eliminating yet another burdensome measure introduced under the Katrougalos pension law. The end of the personal difference will transform the landscape from January 1, 2027 onwards, as retirees will no longer see pension increases only on paper, but will receive a higher pension amount directly in their bank accounts.
A “reminder box” on pension statements about the Katrougalos law
Although the measure abolishes the personal difference, it will still appear as a separate “reminder box” on pension statements — serving as a visible reminder of an unjust measure imposed by the SYRIZA government. This law effectively penalized thousands of retirees with many years of contributions, despite both they and their employers having paid all legally required social security contributions, causing them to lose a significant portion of their pension. The upcoming change primarily affects older retirees — those who had already retired before the Katrougalos law came into force and who still show a positive personal difference after the recalculation of their pensions.
The average monthly increase is estimated at approximately €44 to €50, with the actual benefit varying depending on the insurance fund and pension amount. Based on current projections of a 2.9% increase in primary pensions, a retiree with 25 years of contributions and a primary pension of €723 will receive a monthly increase of €21, translating to an annual gain of €252. Another retiree with 40 years of contributions and a primary pension of €1,526.95 will see a monthly increase of €47.27, amounting to an annual gain of €567.
It should be noted that the abolition of the measure is not accompanied by retroactive payments for increases that were granted to all other retirees who had no personal difference in previous years. In practice, approximately 671,586 retirees who still carry a personal difference will, for the first time in years, see real increases in their pension payments. Social security experts point out that many retirees — particularly those from the former OAEE-TEVE self-employed insurance fund — had a personal difference of more than €300.
Under the old system, it would have taken a decade to eliminate the personal difference
Under the previous framework, it would have taken up to a decade of successive annual increases before the personal difference was fully erased and retirees could see a real rise in their monthly income. Already last year, 50% of the personal difference was absorbed, meaning affected retirees received only half the increases granted to all other pensioners (1.2%). Just over 70,000 retirees have a personal difference of between €200 and €300 each, while another 160,000 fall within the €100 to €200 range, and approximately 144,000 were close to elimination, with a personal difference of between €50 and €100 per person. For all of these retirees, the personal difference will be zeroed out on December 31, 2026, so that they can receive the full pension increase from January 1, 2027 onwards.
Retirees with a remaining personal difference balance will receive the full pension increase, while the personal difference amount itself will neither increase nor decrease — it will remain fixed at its current level and will continue to be paid as a separate amount alongside the pension. The personal difference amount will not be subject to social security deductions (for health and the Unified Social Security Fund), but will only be taxed, as it is considered income outside the pension that is subject to tax together with the pension. Social security deductions will continue to be calculated — as they are now — on the combined sum of the national and contributory pension.
Originally published in “Apogevmatini”
