Four measures totaling 1.3 billion euros, which will boost the income of approximately 2.6 million pensioners, are expected to be implemented within the next two months. The government, in cooperation with the economic team and the Prime Minister’s office, has set as a primary objective the reduction of living costs for low and middle incomes.
The new annual allowance of 250 euros for low-income pensioners
Specifically, the first financial assistance will be provided on November 28, with the payment of the new annual allowance of 250 euros for low-income pensioners, uninsured elderly citizens and people receiving disability benefits. Approximately 1.4 million citizens are expected to benefit from this measure. The payment will be made automatically, without requiring applications or other procedures, while the amount will be tax-free, non-transferable and will be granted every November.
Tens of thousands of pensioners entitled to rent reimbursement
Additionally, on the same day, November 28, approximately 1 million households living in rented accommodation will receive the rent reimbursement, another annual measure being implemented for the first time this year. The beneficiaries include tens of thousands of pensioners, who will see the state reimburse them one-twelfth of the money they have paid for rent, essentially covering 8% of their annual housing costs. “At a time when the entire world is being tested by inflationary pressures, it is clear that there must be special care for citizens who have a fixed income but, due to advanced age or disability, do not have the ability to work. Low-income pensioners are always the most vulnerable category when the cost of living increases. With these interventions, which are permanent in nature rather than extraordinary, the state ensures the enhancement of their income,” noted, according to sources, a government official with knowledge of economic policy planning.
The annual adjustment mechanism
The third measure will be implemented in December, with the advance payment of January pensions, which will be increased thanks to the annual adjustment mechanism that has been established in recent years. For 2026, the increase is estimated to range between 2% and 2.5%, a percentage derived from the average of the growth rate and inflation, so as to reflect both the course of the economy and the increase in the cost of living. It is worth noting that the beneficiaries include this year, for the first time in several years, the 670,000 pensioners who maintain personal difference. Although they were previously excluded from annual increases, based on the measures announced in September at the Thessaloniki International Fair, this year they will receive 50% of the increase given to other pensioners without personal difference. Furthermore, from the end of 2026 the personal difference will be permanently abolished, which means that all pensioners will fully receive the annual increase in their income.
“This intervention also has a clear element of justice, as many pensioners will see a real increase in their net income, while another injustice of the infamous Katrougalos law, which so tormented the Greek pensioner, is eliminated,” commented a government source who has dealt extensively with social security, including the reform that drastically reduced deductions for working pensioners.
The horizontal tax relief from January
Finally, the fourth pensioner support measure will be implemented next January, when the horizontal tax relief from reduced rates in the income tax scale will be reflected in all citizens’ earnings. This will further enhance the net amount of pensions, as monthly tax withholding will be reduced. The fiscal cost of this specific measure for pensioners alone is estimated to reach 400 million euros.
Thousands of pensioners will receive all four of the above enhancements, while the vast majority will see two or even three of them. “In this way, stable and fair improvement of pensions is ensured, based on the country’s economic development with the aim of responding to a significant degree to the increased needs that each household has due to high prices,” emphasized a senior government official, according to sources.
