Greece to abolish pension ‘personal difference’ by 2027

The Greek government has announced the abolition of the ‘personal difference’ mechanism and the implementation of nominal pension increases for long-term pensioners starting January 1, 2027. This move is framed as the fulfillment of pre-election commitments made eight years ago regarding the repeal of the Katrougalos law.

However, analysis suggests that the ‘personal difference’ has largely been eroded by four years of pension adjustments. While 1.1 million pensioners did not receive increases in 2023, the number of individuals expected to miss out on adjustments by 2027 is projected to drop to fewer than 500,000.

Long-term pensioners have already absorbed much of the personal difference and the 18% penalty stipulated by Law 4387/16. Furthermore, pension adjustments between 2023 and 2026 have reportedly remained below the official inflation rate, which the Bank of Greece placed at 17.6% for the period between January 2022 and December 2025, leading to a decline in real disposable income for many retirees.