Projections show that pensioners will remain below the bar.
More than 3 million citizens will suffer a real reduction in income this year. While the announcement of the minimum wage completed the income policy for 2026 – means that what was to be done in terms of income increase has been done – the fear of more price increases is looming increasingly large.
It is clear that all pensioners, a significant number of public servants – mainly those who do not have children or have only one – as well as thousands of workers in the private sector, will not be able to cover the increased cost of living resulting from the impact of the war in the Middle East.
The March inflation figures will be announced within the week and the chances of recording a rate greater than 3% are very high after the frantic course of fuel prices this month. This means that the forecast made in the 2026 budget to contain inflation – on an average annual level – at 2.1% is already off target.
The government is already planning to revise the annual target upwards and indeed above 3%, in the context of submitting the updated estimates to the European Commission. That will also be the percentage with which the net changes in incomes – that is, those that arise after the deduction of taxes and social security contributions – should be compared.
Projections show that pensioners will remain below the bar. Also, those working in the private sector without a collective agreement will not pass it.
The same will apply to a large number of public sector employees who did not receive an indirect raise in their net takings through the tax rate change.
The country’s pensioners as a whole are expected to suffer a reduction in real income this year, as the increase given to net income will be less than inflation. The 2.52 million citizens who have retired received a 2.4% raise only in the gross amount of their main pensions. Also, those subject to the so-called personal difference saw their main pension increase by 1.2% due to the abolition of the 50% “penalty.”