2026 brings a new framework of support for pensioners and welfare recipients, with three different interventions to be implemented in succession over a few months.
Specifically, the finance ministry is moving to a permanent allowance, a refund of part of pensions and increases in pensions, with the aim of boosting disposable income against the pressures of price pressures.
According to the plan, beneficiaries are estimated at about 1.87 million people. Of these, 1.6 million are pensioners, while about 300,000 receive welfare payments.
Allowance of 300 euros in November
The first payment will be made in November 2026 for the permanent allowance of 300 euros. This measure is being significantly extended, with around 420,000 more beneficiaries joining the new scheme.
The allowance applies to pensioners who have reached the age of 65 by 31 December 2025. It will be granted on the basis of specific income and asset criteria.
For unmarried couples and widows, the annual income must not exceed 25,000 euros, while the value of property is set at up to 300,000 euros. For married couples, the income limit rises to 35,000 euros and the property up to 400,000 euros.
The amount reaches 300 euros for each pensioner. In couples of beneficiaries, the total aid can reach 600 euros.
Rent back in late November
The rent rebate for those who paid rent through 2025 will be paid at the same time. The refund is effectively equivalent to one month’s rent.
The amount is calculated as 1/12 of the total payments made in the year, with a maximum cap of €800. There is also a 50 euro surcharge for each child.
The income limits are at the same level as those of the allowance. Specifically, the limit is 25,000 euros for single people and 35,000 euros for married people, with an additional 5,000 euros increase for each family member.
At the same time, there is also a property criterion, as real estate must not exceed 120,000 euros.
The reimbursement will be given together with the allowance, significantly increasing the amounts that will enter the beneficiaries’ accounts at the end of November.
Pension increases in December
The third measure concerns pension increases, which will be reflected in the December 2026 payments, when the January 2027 pensions will be paid in advance.
The increase is estimated to be close to 2.6%, based on growth and inflation estimates.
The big change is to the personal differential, as the offset that was previously in place is eliminated. This means that pensioners will receive the full resulting increase even if they retain a personal difference.
The amount of the personal difference will continue to be paid separately. It will not be subject to social security contributions, but will be taxed normally.
Under the new scheme, those with a high personal difference are expected to see substantial increases in their earnings for the first time, without the delays caused by the previous method of calculation.
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