Significant pension increases for pensioners are coming from 2026, as the government has decided to abolish the personal difference that was established by the Katrougalos law. A total of 650,000 pensioners will benefit from this decision, which will be implemented gradually over a two-year period.
Pensions: How the increases will be implemented
According to a report by “Apogevmatini“, the abolition of the personal difference will be carried out in two stages. Initially, from 2026, it will be reduced by 50%, while in 2027 it will be completely abolished. In the first phase, 200,000 pensioners will receive immediate increases ranging from €12 for the lowest pensions to €80 for the highest.
The remaining 450,000 pensioners, who maintain a larger personal difference, will see the benefits from the complete abolition in 2027. This gradual approach ensures that all beneficiaries will receive their increases within a specific timeframe.
Which pensioners will see increases in 2026
Pension increases will be distributed according to the pension amount and the personal difference.
Specifically, the categories that will benefit immediately are:
• Pensioners with low pensions of €700-800 and personal difference below €50
• Pensioners with pensions of €2,000-2,240 and personal difference up to €110
• Pensioners with pensions of €2,240-2,725 and personal difference up to €150
Medium pensions ranging between €1,300 and €1,700 will have monthly increases from €32 to €42.
Examples of increase calculations
To help pensioners better understand the upcoming increases, let’s examine specific examples. A pensioner with a pension of €1,000 and personal difference of €25 will gain approximately €28 from the annual increase of 2.7%, completely nullifying the personal difference.
In the case of a larger personal difference, such as €100, the pension will be set at €1,078 in 2026, leaving a remainder of €22 that will be incorporated in 2027.
Financial cost and manageability
The cost from the partial abolition of the personal difference is expected to exceed €35 million for 2026. From 2027, the total cost will reach €160 million, an amount considered absolutely manageable for the state budget.
A significant change is the new method of calculating increases from next year, as they will be based on a wage index instead of inflation. This year, 1.9 million pensioners received increases with a cost of €440 million, corresponding to an average annual increase of €232 per pensioner.
History and significance of the personal difference
The personal difference concerns former pensioners who had retired before law 4387/2016. After pension recalculation, the difference between old and new pensions was paid as a personal difference to avoid reductions.
From the total of 1.2 million pensioners who acquired a positive personal difference in 2019, almost 540,000 have managed to completely nullify it. The largest personal differences, reaching up to €450 in the former OAEE and €750 in ETAP-MME, will benefit significantly from the new regulation.
