Greece to Introduce Permanent €250 Annual Allowance for Low-Income Pensioners –Wage Increases Across Public

Starting November 2025, Greece will introduce a permanent €250 annual allowance for approximately 1.1 million low-income pensioners, as part of a broader income support strategy that also includes wage hikes, reduction of pension offsets (“personal difference”), and adjustments to public sector salaries.

This comes at a time when the government aims to provide lasting relief measures over ad-hoc bonuses, seeking fiscal sustainability while maintaining social cohesion.

Permanent €250 Bonus: Who Qualifies

The annual bonus of €250, which may gradually increase to €300 in the coming years, targets pensioners with limited income and property assets:

• Singles: Annual income up to €14,000, property value up to €200,000
• Married couples: Annual income up to €26,000, property value up to €300,000

Additional eligible groups include:

• Disability pensioners (e-EFKA)
• Uninsured elderly receiving solidarity support (OPEKA)
• Recipients of absolute disability benefits (former OGA)
• Public sector pensioners receiving sickness/incapacity benefits
• Foster parents of children with disabilities
• Recipients of institutional care benefits or severe disability assistance

 Who Is Excluded

According to the National Pensioners’ Union (ENYPEKK), the following groups will not receive the bonus:

• Pensioners under the age of 65 (as of 31 December 2024)
• Working pensioners, due to higher declared income
• Recipients of large “personal difference” pension offsets
• Pensioners who received retroactive payments in 2024
• Those with temporary or partial pensions as of September 2025

Out of 2.5 million pensioners, approx. 480,000 are under 65 and thus excluded. However, all disabled pensioners will receive the bonus, regardless of age.

Reduction of “Personal Difference” – Gateway to Real Increases

A key reform is the 50% reduction of the “personal difference”, a legacy pension offset that prevents around 670,000 pensioners from receiving standard annual increases.

Pensioners with remaining offsets below €60 could fully eliminate the difference by 2026, becoming eligible for full pension increases thereafter.

This reform replaces last year’s €100–€200 one-off “personal difference” allowances with a long-term, structural correction.

 Salary Increases: Public and Private Sector

Armed Forces & Security Personnel

• A new payroll system is under preparation for 2026
• Potential annual gain equivalent to half a month’s salary for specific categories

 Private Sector

• A €40 increase in the minimum wage is expected from April 2026, affecting over 1 million workers
• Goal: Minimum wage to reach €950 gross/month by 2027

 Public Sector

• €35–€40 gross monthly increase starting April 2026
• Net annual gain of €200–€250
• Target: €950 gross entry-level salary by 2027

Government Strategy: Stability Over Populism

The Greek government has explicitly ruled out proposals to reinstate holiday bonuses for pensioners and public servants, citing prohibitive fiscal costs—€3 billion and €5 billion annually, respectively.

Instead, the focus is on:

• Permanent income support
• Targeted salary increases
• Gradual tax reductions

 Conclusion: Toward Sustainable Income Policy

By introducing a permanent allowance, reducing outdated pension offsets, and implementing structured salary hikes, the Greek government signals a shift toward long-term financial support measures over one-time relief payments.

These changes also reflect the country’s effort to restore a sense of fairness and modernisation to its post-crisis social policy framework—without jeopardising fiscal responsibility.

Source: pagenews.gr