Greece to implement automatic disability benefit increases from 2027

The Greek government has announced a new system for the automatic annual adjustment of disability benefits, set to take effect on January 1, 2027. This reform aims to prevent benefits from remaining stagnant by linking increases to economic indicators, mirroring the current model used for pension adjustments.

The annual increase will be calculated based on the average of the previous year's inflation rate and the GDP growth rate. However, the total adjustment is capped at the current inflation rate. Based on economic projections for 2026, which estimate inflation at approximately 3% and GDP growth at 2%, the initial increase for 2027 is estimated to be between 2.5% and 3%.

The reform affects approximately 218,000 beneficiaries across two main agencies. OPEKA manages benefits for 171,700 individuals, including financial support for those with severe disabilities, the deaf, and the blind. e-EFKA manages special benefits for 46,400 individuals, such as extra-institutional allowances for paralysis or quadriplegia.

The total annual state expenditure for these benefits is currently around 1.69 billion euros. The new mechanism is expected to impose an additional fiscal burden of approximately 47 million euros in the first year of implementation, and roughly 40 million euros annually thereafter.