All retirees see income rise with advance January pension payments

The increase applies to all 2.6 million pensioners nationwide. Until now, more than 670,000 retirees affected by the so-called “personal difference” had not seen their pension payments rise, as increases were offset by reductions in that difference rather than reflected in their monthly income.

The “personal difference” refers to the gap between pension amounts calculated under pre-2016 rules and those recalculated after reforms introduced in 2016. Pensioners who retired before the reforms continued to receive the higher amount, but the personal difference effectively capped annual increases, preventing them from fully benefiting from cost-of-living adjustments until the gap was eliminated.

The change follows a government decision to abolish the personal difference in two stages. Under the plan, the gap will be reduced by half in 2026 and fully eliminated in 2027. As a result, pensioners still subject to the personal difference will receive half of the scheduled pension increase, estimated at 1.2%, in 2026, and the full increase from 2027 onward.

Additional measures aimed at supporting pensioners are also being implemented. These include a permanent annual benefit of 250 euros, to be paid every November, for more than 1.4 million low-income pensioners, uninsured elderly citizens and recipients of disability benefits.

Pensioners are also expected to benefit from lower income tax rates set to take effect in 2026, a measure the government estimates will total around 400 million euros in tax relief.