Two scenarios for increasing pensions: what the government is considering

Two scenarios Considered by the Greek government to increase revenues low-income pensioners. Final decisions are expected in Septemberwhile a preliminary political alarm is not excluded in the spring – depending on how much it will be exceeded budget surplus 2025.

The scenarios that are on the “table” of the economic headquarters concern either increase in permanent benefitsor abolition of the solidarity contribution for additional pensions.

Increase in permanent benefit

The possibility is being considered up to double magnification benefits in the amount 250 euroswhich from November 2025 is paid to pensioners over 65 years of age, recipients of disability benefits, as well as uninsured senior citizens over 67 years of age through CUSTODY.

Next payment scheduled for November 2026can amount to 400 euros (increase by 150 euros) or 500 euros in case of complete doubling.

The key parameter remains the question expanding the circle of recipients. Two options are being discussed: either expansion income criteria (including pensioners with an individual income over 14,000 euros and a family income over 26,000 euros), or maintaining the current criteria if lowering the age threshold – up to 62 years old.

The current payment of 250 euros costs the budget approximately 360 million euros. An increase to 400 euros will increase the cost to about 570 million eurosand complete doubling – up to 700 million euros.

Cancellation of the solidarity contribution

The second scenario assumes abolition of the solidarity contribution (ΕΑΣ)which is held with additional pensions from 350.01 euros and higher on an eight-step scale – from 4% to 10%.

Eliminating this contribution will reduce withholding by the amount 167 million eurosusing means ΑΚΑΓΕ (about 640 million euros), which have not yet been spent.

So, with an additional pension in 350 euros today 6% is withheld for healthcare, and the amount is reduced to 319.15 euros before tax. If ΕΑΣ is cancelled, the pre-tax pension will increase to 329 euroswhich means indirect increase of 10 euros.

For retirement in 400 euros grosswhich today decreases to 361.85 euroscanceling ΕΑΣ will result in 451 euros before taxthat is, an actual increase by 25 euros.

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