The Greek government’s decision to reduce the so-called “personal difference” in pensions by 50% from 2026 will lead to only modest gains for most retirees next year, according to initial estimates.
The “personal difference” is a mechanism that offsets increases until the gap between old and new pension calculations is eliminated. As a result, only retirees with very small remaining differences will see immediate increases.
Small increases in 2026
Retirees with a personal difference under €30 may see monthly increases of €10 to €20 in 2026, provided that pensions rise by 2.5% and the monthly pension exceeds €1,000. For the roughly 650,000 pensioners who still carry a personal difference, only about 200,000 fall into this category.
Full raises from 2027
From 2027, the personal difference will be fully absorbed into pensions, allowing all retirees to receive the full annual increase without restrictions.
Two possible scenarios for 2026
Officials are considering two approaches for next year:
- Offset-first model: Apply the 50% reduction to the personal difference, then calculate the annual pension increase. If the increase is larger than the remaining difference, the surplus is added to pensions. This would result in minimal gains, affecting only a small group of retirees.
- Shared increase model: Grant 50% of the 2026 raise to all retirees who still have a personal difference, even if it exceeds the annual increase. This would allow more pensioners to see some benefit, albeit limited.
The Ministry of Labor is expected to provide full details today, clarifying how the measure will be applied and what retirees can expect in the coming year.
