The Cabinet approved on Tuesday to keep absorbing pension increases for low-income pensioners until June 30, 2026. This affects about 24,000 households. The total cost of this measure is 13.5 million euros.
The Deputy Ministry of Social Welfare says this decision helps prevent cuts or loss of the low-income pensioner allowance. This could happen because of a planned increase in Social Insurance Fund pensions starting January 1, 2026. This increase is expected to be around 3.38%.
If the absorption period wasn’t extended, the pension increase would count as income for beneficiaries. This could lower the allowance amount or even stop it altogether. With today’s decision, the state guarantees that the increase won’t affect allowance payments until the end of June 2026.
This measure helps households in the Low-Income Pensioners Support Scheme and low-income pensioners getting support through the Minimum Guaranteed Income.
The Deputy Ministry of Social Welfare points out that even with the cost of 13.5 million euros, this decision keeps social support steady without changing the low-income pensioner allowance. Beneficiaries will still get their usual pension increases from the Social Insurance Fund.
