Greece to phase out pension personal difference by 2027

The Greek Ministry of Labour and Social Security has outlined a timeline for the complete abolition of the 'personal difference' mechanism, which affects pension increases. According to government officials, the process is designed to rectify inequities stemming from previous insurance legislation.

The phase-out plan includes a 50% reduction of the personal difference starting January 1, 2026. By January 1, 2027, the mechanism will be entirely eliminated. This change ensures that from 2027 onwards, pensioners will receive the full amount of their pension increases based on their net pension, as the offsetting mechanism with the personal difference will cease to exist.

The Ministry's move follows political criticism from PASOK spokesperson Kostas Tsoukala. Government circles maintain that these interventions are necessary to restore distortions in the previous social security framework and to ensure equal treatment between all pensioners.