Greece to abolish pension ‘personal difference’ by 2027

Greece is set to abolish the ‘personal difference’ mechanism in the pension system, a measure originally introduced under the Katrougalos Law that has functioned as a cap on pension increases for years. The process of phasing out this difference is expected to conclude by December 31, 2026.

Starting January 1, 2027, approximately 670,000 retirees who currently maintain a positive personal difference—where the pension amount on their statement is higher than the actual amount received—will receive full annual increases directly into their bank accounts. These increases are estimated to be around 2.9%, depending on economic growth and inflation data. The average monthly increase for these retirees is projected to be between 44 and 50 euros.

While the abolition allows these retirees to benefit from future increases, it does not include retroactive payments for the cumulative increases missed since 2023. During that period, other retirees received a total cumulative increase of approximately 15.55%, whereas those with a personal difference saw their raises limited or offset by the mechanism.