Greece pension increases spark debate over personal difference mechanism

A political debate has emerged in Greece regarding the implementation of pension increases and the abolition of the ‘personal difference’ mechanism. While the government has moved toward eliminating this gap, technicalities in how future increases are calculated are causing controversy.

According to EFKA data, approximately 671,586 pensioners still have a remaining personal difference. For about 165,000 of these individuals, the projected 2.8% increase for 2027 will apply to their total pension because their personal difference was neutralized by the 2026 increase. However, for the remaining 506,586 pensioners, the increase will only be calculated on the national and compensatory pension amounts, leaving the personal difference portion frozen and ineligible for the percentage hike.

PASOK spokesperson Kostas Tsoukalas has criticized the government, accusing it of ‘salami-slicing’ the benefits and failing to provide equal increases. He argues that the technical application of the law effectively maintains the consequences of the personal difference, creating two tiers of pensioners. Critics note that for those with a personal difference exceeding 50 euros, the effective increase will be less than the stated 2.8% of their total monthly income.