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The government has decided to shield low-income pensioners from losing benefits as a result of upcoming pension increases, a move expected to support around 24,000 households.
On Tuesday, the Council of Ministers approved an extension of the period during which the state will absorb the cost of pension increases, pushing the deadline to 30 June 2026. The measure is estimated to cost €13.5 million.
According to the Deputy Ministry of Social Welfare, the decision was taken to ensure that pensioners with limited incomes continue to qualify for the low-pensioner allowance. From 1 January 2026, pensions paid through the Social Insurance Fund are set to rise by approximately 3.38%. Without intervention, this increase would have been counted as additional income and could have led to reductions or the complete loss of the allowance for some beneficiaries.
By extending the absorption period, the pension increase will be excluded from income calculations used to determine eligibility for the low-pensioner benefit. This guarantees that recipients will retain their full allowance while also receiving the higher pension payments.
The measure safeguards the incomes of households enrolled in the Low-Income Pensioner Support Scheme, including those who receive the low-pensioner allowance through the Guaranteed Minimum Income framework.
The Deputy Ministry emphasized that the decision ensures the uninterrupted continuation of financial support for low-income pensioners, with no changes to the allowance itself, while allowing beneficiaries to benefit fully from the forthcoming pension increases.
