From end-November until Christmas, the country’s 2.5 million pensioners will receive relief payments, starting from the annual allowance of 250 euros up to increases of 2.4%, in combination with interventions in the “personal difference,” as well as tax relief.
The annual increase in pensions results from the sum of inflation and the growth rate, divided by two and is expected to reach 2.4%. At the same time, pensioners who have a personal difference (the amount by which a retiree’s reformed pension is less than their old one) will receive an increase of at least 50%, while from 2027 the personal difference will be zero.
The package of financial interventions concerning pensioners will be implemented on November 28, with the competent ministries of National Economy and Labor activating the permanent allowance of €250. This is a benefit that will be paid to approximately 1 million low-income pensioners, as well as 340,000 uninsured elderly people and beneficiaries of disability benefits. The process will be automatic, without applications. Besides, the handout that was given in all previous years as an extraordinary benefit is now established as an annual subsidy.
The second part of the package will appear in the January pension, paid in December. Then, the pension increases for 2026, the abolition or reduction of the personal difference, and the changes in taxation will be incorporated.
The increase in pensions is expected to close at 2.4%, a rate slightly higher than the initial forecasts. Monthly increases start at €12 for pensions around €500 and reach up to €72 for pensions close to €3,000.
Of particular importance for pensioners, and mainly for the government, which has invested politically in the decision to “abolish” the personal difference, is the transition to the new regime. The issue concerns approximately 670,000 pensioners, who have not had a raise since 2010. From 2026, they will receive 50% of the increase in their pocket, while the remainder will reduce the personal difference.
From 2027, 100% of the increase is due. In practice, the personal difference will be reduced to zero. In this way, the possibility of increasing the net amount of pensions is gradually restored, which for years did not happen for those with a high personal difference.