The Ministry of Labor is proceeding with the submission of a new pension bill that includes nine crucial reforms, with the main focus being the abolition of personal difference in two phases. The bill is expected to be put to public consultation within November, bringing significant improvements for thousands of insured individuals and retirees.
Read: October 2025 pensions: Payment dates for all funds
Extension of fictional time to supplementary pensions
According to the newspaper “Apogevmatini” and Antonis Vasilopoulos, the first significant change in the new pension system concerns the extension of the 2011 Koutroumanis law. Now, the possibility of purchasing fictional years of insurance extends to supplementary pensions, not exclusively to main pensions. This regulation primarily targets freelancers and self-employed individuals who face difficulties in completing the minimum 15 years of insurance. According to estimates, approximately 25,000 to 35,000 new beneficiaries will gain access to supplementary pensions through the purchase. The measure aims to achieve balance between different categories of workers and address existing inequalities.
New methodology for calculating contributory pensions
From 2026, the readjustment of salaries for calculating contributory pensions will be based on the Wage Index instead of inflation. This change means that annual increases in average wages will be directly incorporated into the calculation base. Since the Wage Index usually exceeds inflation, future pensions will be increased in real terms. 2025 retirees based on 2024 data will benefit from higher contributory pensions, as the Wage Index amounts to 3.5% versus 2.9% in current pensions.
Revision of survivor pensions and harmonization of rules
The new pension bill reintroduces issues of cuts in private sector survivor pensions, depending on the survivor’s work activity after the first three years. The ministry is examining two alternative approaches to resolve the issue. The first option provides the survivor with the right to choose which pension will be cut after completing three years. The second focuses on cutting exclusively the national pension of 436.4 euros, keeping the contributory pension intact. At the same time, avoiding retroactive cuts that would impose on IKA insured individuals the return of 4,000 to 6,000 euros is being examined.
Unified benefit regulation and digitization of payments
The new cash benefit regulation aims to unify the different regimes that apply per former fund. With its implementation from 2026, equalization of all benefits at the level of the former IKA is envisaged, including sickness, maternity, disability and work accident allowances. At the same time, the work stamp will operate with a maximum ceiling and mandatory electronic transaction through banking systems or the EFKA platform. This digitization enhances transparency in labor markets with undeclared hours and addresses tax evasion phenomena.
Improvements for mothers and professional funds
The bill provides for the consolidation of contributions for mothers with insurance in different funds during pregnancy. The days will be calculated collectively instead of individually in each organization, allowing fairer calculation of pregnancy and maternity allowances. At the same time, mechanisms are created to strengthen professional supplementary insurance funds through tax incentives. Income taxation is linked to participation duration, with a 7.5% tax for 5 to 10 years of participation and only 2.5% for participation over 20 years.
Abolition of personal difference in two phases
The gradual abolition of the personal difference constitutes the central announcement of the new pension system. From 2026, the 50% reduction will benefit 200,000 retirees with increases of 10 to 30 euros on pensions above 1,000 euros. Additionally, 450,000 beneficiaries will benefit from complete abolition in 2027.
The increases range from 12 euros for low pensions of 450 to 500 euros, reaching 55 euros for pensions that with personal difference amount to 2,200 euros. Average pensions between 1,300 and 1,700 euros will receive monthly increases from 32 to 42 euros.
