Thessaloniki International Fair 2025: Greece Mulls Scrapping “Personal Difference” for 670,000 Pensioners

he Greek government is considering a landmark reform affecting approximately 670,000 pensioners, as it prepares the economic measures to be announced by the Prime Minister at the 2025 Thessaloniki International Fair (TIF).

At the center of the debate is the full abolition of the “personal difference” (προσωπική διαφορά) — a technical mechanism that currently blocks many retirees from receiving annual pension increases.

What is the “personal difference”?

The “personal difference” was introduced in 2016 during a major pension recalibration to prevent reductions in older pensions. While this avoided immediate cuts, it created a second-tier group of pensioners: those with a personal difference are excluded from automatic annual increases, until the gap is offset (“zeroed out”).

According to estimates by Greece’s EFKA (social security agency):

• 90,000 pensioners each year gradually eliminate their personal difference through nominal increases.
• By 2027, an additional 240,000–250,000 are projected to follow.
• However, 400,000 retirees with large personal differences could wait 5 to 10 years before receiving real increases in their monthly payments.

What abolition would mean – A case example

A retiree from IKA (Greece’s main social insurance fund), with 25–27 years of contributions, currently receives a total pension of €883, including a personal difference of €42.

If the personal difference is abolished in 2025, and assuming a 2.4% increase in 2026, the pension would rise by €21, reaching €904. That increase would not otherwise apply under the current system.

More importantly, the retiree would be eligible for all future increases, with no further delays or offsets.

Cost scenarios under review

The Ministry of Finance is weighing three main options:

The current system: Annual allowance for affected pensioners

Since 2023, pensioners who do not receive actual increases due to their personal difference receive an annual “personal difference allowance”. In 2024, the benefit was targeted to those with:

• A remaining personal difference over €10, and
• Total gross monthly pensions below €1,600 (pre-tax).

The allowance amount was tiered:

• €200 for pensions up to €700
• €150 for €700.01–€1,100
• €100 for €1,100.01–€1,600

The government has already announced that this allowance will become permanent starting in November 2025, unless the personal difference is abolished entirely.

A fiscal and political balancing act

Only one of the two measures — either the permanent €250 allowance or the abolition of the personal difference — will move forward, as fiscal space is limited. Both options are seen as support for low and middle-income retirees, but the latter has been described as a more structural and fair solution, with long-term impact.

The final decision is expected to be announced by the Prime Minister during his keynote speech at the Thessaloniki Fair in September.

Source: pagenews.gr