Five significant changes to the pension landscape are being set in motion for millions of retirees, aimed at correcting longstanding injustices, boosting pension payments, and creating incentives for pensioners to remain in the workforce. At the heart of these plans are an additional increase to primary pensions, a restructuring of the Pensioners’ Solidarity Contribution (EAS), changes for working pensioners, and the payment of backdated amounts for widows’ pensions.
Read also: Mitsotakis on widows’ pensions: “8,500 beneficiaries will see increases up to pre-cut levels — a major social injustice is being corrected”
Additional increase to primary pensions and possible rises for supplementary pensions
Estimates from the Bank of Greece project economic growth of 2.3% for 2026, up from a previous forecast of 2.2%, while inflation is projected at 3%, compared to an earlier estimate of 2.7%. Based on these figures, a pension increase of around 4% is considered likely. At the same time, the possibility of increases to supplementary pensions is also being explored. A key factor in that decision will be the financial performance of the supplementary insurance branch of e-EFKA and confirmation of the surplus recorded throughout 2024.
A new structure for the Pensioners’ Solidarity Contribution for fairer deductions
A significant reform is also under consideration for the Pensioners’ Solidarity Contribution (EAS). The issue primarily affects those receiving a primary pension above the current threshold at which the contribution is applied.
As pension brackets are adjusted in line with pension increases, the threshold above which EAS is imposed gradually rises. While in 2025 the contribution kicks in for primary pensions above €1,434, that threshold is expected to rise further in the coming years.
This development raises concerns about the long-term effectiveness of the measure and brings back into focus a plan for a radical overhaul of the EAS system.
On the table is the introduction of four proportional brackets, with the contribution calculated only on the portion of the pension that exceeds each bracket’s threshold — not on the total amount.
For example, on a pension of €1,600, instead of applying a 3% contribution to the entire amount, the deduction would only apply to the €166 difference between €1,434 and €1,600. With a higher rate applied to a much smaller amount, the final deduction could actually be lower. The model under consideration envisages progressive rates for higher pension amounts, alongside a cap to ensure no pensioner ends up paying more than they would under the current system.
EAS exemption for pension increases earned through continued employment
Another proposed measure concerns pensioners who continue working. The goal is to create an additional incentive by ensuring that pension top-ups earned through continued employment do not result in a higher EAS deduction.
Under the plan being examined, any pension increase resulting from employment would not be factored into the EAS calculation. So, for instance, a pensioner who gains an extra €40 to their pension through work — and as a result crosses the €1,434 threshold — would not be subject to EAS on that specific increase.
Similarly, the measure could prevent pensioners from moving into a higher deduction bracket when the threshold is exceeded solely due to additional pension rights accrued through employment.
Changes to widows’ pensions
On August 28, 8,500 public sector beneficiaries whose widows’ pension was slashed from 70% to 35% of the deceased spouse’s original pension will see that benefit doubled.
At the same time, while more than 75,000 beneficiaries will not receive an increase, they will for the first time benefit from permanent protection against future cuts, and approximately 122,000 insured individuals are guaranteed the retention of both national pensions. On the other hand, around 60,000 older widows’ pension recipients will see no increase at all, despite the cuts they have already endured.
Pension top-ups for those who keep working
Finally, the implementation of a scheme providing pension top-ups for working pensioners is moving forward. For each additional year of employment, an extra rate of approximately 0.77% is applied, calculated on the basis of earnings or, for the self-employed, on their contributions. This rate is now being considered for an increase to 0.98%.
As a practical example, with a salary of €1,000, one year of continued employment can currently result in a pension top-up of around €8. That amount doubles for two years of work and increases proportionally for additional years. With the proposed higher rate, the top-up on €1,000 in earnings would rise to €10 per year. To activate the top-up, pensioners must cease employment, file a relevant declaration with e-EFKA, and submit a request for their pension to be recalculated.
Originally published in the Apogevmatini newspaper
