Greece to Phase out ‘Personal Difference’ in Pensions by 2027
Prime Minister Kyriakos Mitsotakis announced at the Thessaloniki International Fair that the pension adjustment known as the “personal difference” will be halved in 2026 and fully abolished in 2027, opening the way for more retirees to receive increases
Greek Prime Minister Kyriakos Mitsotakis announced new pension measures during his address at the Thessaloniki International Fair (TIF), confirming the gradual abolition of the so-called “personal difference”—a mechanism that has prevented many retirees from benefiting from pension increases in recent years.
Under the plan, the personal difference will be reduced by 50% in 2026 for around 671,000 pensioners and completely eliminated in 2027. This change will be accompanied by other relief measures, including the phased abolition of the property tax (ENFIA) in villages with fewer than 1,500 residents.
What the changes mean for retirees
In 2026, retirees will still retain half of their personal difference, meaning they will not see increases that year. For example, a pensioner currently receiving €883 per month with a personal difference of €42 would see that amount cut to €21 in 2026 before disappearing entirely in 2027.
Each year, about 90,000 retirees qualify for increases as their personal difference balances out with annual adjustments. Projections suggest that within the next two years, another 240,000–250,000 pensioners would have reached this point even without the reform. The new measure accelerates the process, bringing an additional 450,000 pensioners under the system of actual pension increases once the personal difference is abolished.
Who is affected
The personal difference applies only to pensioners who retired before May 2016, prior to the implementation of the so-called Katrougalos law, which restructured pension calculations. Those retiring after that date already receive pensions under the new system and do not carry a personal difference.
According to government data, retirees have missed out on cumulative increases of 13.15% over the past three years because of the mechanism. In 2024, 1.9 million pensioners did receive a 3% increase, totaling €440 million, or an average of €232 annually per person.
With the abolition of the personal difference, the number of retirees eligible for raises will expand significantly. The additional fiscal cost—estimated at around €200 million—will be covered by increased state revenue, partly linked to the growing number of working pensioners.
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