Greece Increases Cost of 'Fictional Years' for Pensions Following Minimum Wage Hike

The recent increase in the minimum wage to €920 has triggered significant changes in the cost of acquiring 'fictional years' for pension purposes in Greece. This adjustment, effective April 1, 2026, will raise the monthly cost to €184 and the annual cost to €2,208, directly impacting thousands of insured individuals planning to expedite their retirement.

This measure makes the recognition of these 'fictional years' more expensive for those seeking to meet the required insurance years. The purchase price is calculated as 20% of the gross salary in the month preceding the application. The adjustment of the minimum wage directly influences this calculation, increasing the financial burden for those opting for this route. However, individuals who submitted their applications before March 31, 2026, will still benefit from the previous, lower cost.

The increase primarily affects low-wage earners, public employees submitting new applications, and self-employed individuals and farmers due to rising contributions. For the self-employed, the cost is tied to insurance contributions, which are adjusted annually for inflation. It is noteworthy that nearly half of all insured individuals now resort to purchasing these 'fictional years' to either qualify for retirement or secure a higher pension income, often due to the high general retirement age requirements that necessitate 35 to 40 years of insurance.

The current framework allows for the purchase of 5 to 7 years of insurance. This can be used to create more favorable retirement conditions, particularly for those insured before 1993, or to reach the 40-year mark for retirement at age 62 for those insured after 1993. Several categories of insured individuals can utilize this provision, including parents of minors or those with three children in public service, mothers of minors in IKA or public utility companies, public employees aiming for 35-37 years of service, and self-employed individuals and farmers needing 40 years of insurance.