Increases in pensions of around 2.8% for 2027 are revealed by the draft budget, which was made public yesterday by the Ministry of National Economy and Finance, along with the payment of the regular allowance of 400 euros, to the majority of pensioners.
The significant strengthening of disposable income for millions of pensioners is in fact accompanied by a simultaneous strengthening of the financial foundations of the social security system, as the Social Security Organizations are estimated to have a mammoth surplus, on the order of 2.4 billion euros.
In detail, according to the draft, the central spearhead of the planned interventions is the horizontal increase in pensions by 2.8% from January 1, 2027, a measure that concerns all pensioners in the country, as it is applied without the previous offsetting of the personal difference.
This development is accompanied by confirmation of the financial robustness of the Social Security Organizations (OKA), which are expected to record a mammoth surplus of 2.432 billion euros, fueled mainly by the positive course of the labor market and the limitation of contribution evasion.
More specifically, the horizontal increase of 2.8% was shaped on the basis of macroeconomic estimates for the average inflation rate and GDP growth, also incorporating the final data for 2025. The fiscal cost of this specific adjustment amounts to 807 million euros, while total pension expenditure is projected to swell by approximately 1.1 billion euros, reaching 36.768 billion euros in 2027 from 35.718 billion euros in 2026.
At the same time, the framework of income support is complemented by a series of permanent social policy measures. From November 2026, the annual financial support increases from 300 euros to 400 euros net and is extended on a permanent basis to all pensioners over 65 years of age.
This expansion adds 270,000 new beneficiaries, raising their total number to 2.2 million people, at a total cost of 879 million euros. The same amount of 400 euros net will also be received by pensioners over 60 years of age who are beneficiaries only of a survivor's pension, people with disabilities regardless of age limit, as well as uninsured elderly people.
In addition, a long-standing injustice is removed with the full abolition of the 50% cut in survivor's pensions after the lapse of three years, an intervention with a fiscal cost of 48 million euros, while the annual indexation of disability benefits is also established.
The surge in the surplus of the OKA (the sub-sector includes e-EFKA, EOPYY, DYPA, OPEKA and NAT) to 2.432 billion euros in 2027 —from 1.534 billion euros in 2026— reflects the strong rise in revenues, which are projected to amount to 57.623 billion euros.
The main driving force behind this performance is revenue from social security contributions, which is estimated to increase by 1.2 billion euros compared with 2026, reaching 31.071 billion euros (from 29.870 billion euros).
Social security contributions
This impressive increase in collections is achieved despite the fact that from April 2027 the measure to reduce social security contributions by half a percentage point comes into effect.
The resilience and growth of revenues are attributed to the favorable conditions prevailing in the labor market: the further decline in unemployment (from 8.4% in 2026 to 7.9% in 2027), the expansion of total employment (projected to increase by 0.4% in 2027, with the number of salaried employees increasing by 0.7%), the increases in the minimum and average wage in the private sector (employee compensation per worker is projected to increase in nominal terms by 3.9% in 2027 versus 3.7% in 2026 and total employee compensation to 4.6% in 2027 from 4.4% in 2026), as well as wage adjustments in the public sector.
A catalyst for the inflow of new resources into the funds is the gradual expansion of the Digital Work Card to new sectors of the economy. The universal application of the measure effectively strikes undeclared and underdeclared work.
According to the data of the draft, total revenues attributed directly to the use of the work card are estimated at 507 million euros for 2026 (an additional 135 million euros compared with 2025), while for 2027 they are calculated to yield an additional 313 million euros, raising the total benefit to 685 million euros.
On the expenditure side of the OKA, total expenses are projected to reach 55.191 billion euros in 2027, showing a controlled increase, which is also positively affected by the completion of the programs of the Recovery and Resilience Facility (RRF) within 2026.
At the same time, transfers from the regular budget (24.238 billion euros) to the funds and DYPA for the coverage of main insurance benefits will also be increased, as well as to EOPYY for the widening of the pharmaceutical expenditure limit and the expansion of preventive examinations.