Millions of pensioners in Greece will receive two permanent income boosts over the next two months, with the government set to pay an increased annual €400 financial allowance in November, followed by pension increases for 2027 in December.
The two measures carry a combined estimated fiscal cost of nearly €1.7 billion and feature in the draft state budget, as the government seeks to support pensioners’ incomes.
The first measure raises the annual financial allowance from €300 to €400, with payments due in November. The second introduces a 2.8% annual pension adjustment from 1 January 2027, which pensioners will see in payments made in December.
The adjustment will affect seven categories of pension benefits and limits, including main and national pensions, survivors’ pensions and pensions under the former Agricultural Insurance Organisation (OGA).
€400 Payment to Reach 2.2 Million Beneficiaries
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The increased annual allowance of €400, which beneficiaries will receive tax-free, represents the first measure scheduled for implementation in November.
According to government announcements, eligible recipients now include all pensioners aged over 65, pensioners over 60 who receive only a survivor’s pension, people with disabilities regardless of age, and uninsured elderly people.
The number of beneficiaries will increase significantly this year. An additional 270,000 pensioners and other eligible recipients will receive the payment compared with last year, bringing the total number of beneficiaries to 2.2 million.
The measure carries an estimated fiscal cost of €879 million.
Pension Increases for 2027
The second income boost involves the 2027 pension increases. The government will pay the increases in December, alongside January’s pensions, benefiting approximately 2.5 million pensioners.
Based on the macroeconomic forecasts in the draft budget, pensions will rise by 2.8%, at an estimated fiscal cost of €807 million.
Under current legislation, the annual pension adjustment reflects the average of inflation and the economy’s growth rate.
A significant change also concerns the personal difference system. Under the plan outlined in the draft budget, pensioners will receive the increases without the government offsetting them against their personal difference.
This change will expand the number of pensioners who receive an actual increase in their monthly income.
Seven Pension Categories to Receive Adjustments
The 2.8% annual adjustment will extend beyond existing main pensions. It will also affect the national pension, newly awarded pensions and several minimum and maximum pension limits.
The seven categories are:
1. Main pensions: Pensions payable on 31 December 2026 will receive the adjustment from 1 January 2027.
2. National pensions for new awards: The national pension, currently around €446, will rise in line with the annual adjustment rate.
3. Contributory pensions for new awards: The adjustment will also apply to contributory pensions granted from 1 January 2027.
4. Maximum main and supplementary pension limits: The maximum main pension currently stands at €5,362 gross, while the maximum supplementary pension stands at €1,608 gross.
5. Minimum survivors’ pension limits: These currently range from approximately €418 to €446. The minimum pension for an occupational accident or work-related illness currently stands at €893.
6. Former OGA basic pension: This currently amounts to €418.
7. Survivors’ pensions: These will also receive the annual adjustment.
(Source: AMNA)