e EFKA Expects Strong 2026 Surplus Despite Rising Insurance Expenditure
e EFKA forecasts a fiscal surplus of 1.04 billion euros for 2026 even as its spending obligations increase significantly. The agency’s upcoming budget highlights that costs for main insurance and other benefit categories are projected to climb to 31.12 billion euros in 2026.
Compared with the 2025 estimate of 29.98 billion euros, projected expenditure is set to rise by 1.14 billion euros within a year. Higher revenue from insurance contributions is expected to offset this pressure, with total income projected to reach 36.86 billion euros in 2026.
These estimates exceed the 2025 projection of 35.43 billion euros in contribution revenue by 1.42 billion euros. Improved inflows are anticipated to balance the system’s elevated benefit obligations.
Drivers Behind Rising Costs
Multiple factors contribute to the 2026 expenditure increase, according to e EFKA’s administration.
A 2.4 percent rise in main pensions beginning on 1 January 2026.
Accelerated processing and issuance of new pensions.
A 50 percent reduction in the personal difference of pensions in 2026, with full elimination to follow in 2027.
Supplementary insurance spending is forecast to rise by 7.3 percent in 2026 due to pending pension applications and related retroactive payments. Expenditure on lump sum benefits is expected to fall by 9.75 percent because most outstanding retroactive obligations have already been settled.
Revised 2025 Outcome
Updated projections show that e EFKA will close 2025 with a surplus of 282.85 million euros. Main insurance and other benefit sectors, however, are expected to record a deficit of 79.37 million euros because of a 250 euro annual allowance granted to low income pensioners.
Cash reserves covered the shortfall in 2025. Strong performance in supplementary and lump sum insurance, delivering a positive result of 362.7 million euros, played a decisive role in maintaining overall balance.
The combined outcome across all insurance sectors is expected to show a surplus of 76.71 million euros on 31 December 2025. When financial transactions are included, the fiscal result for 2025 is projected to reach 283.35 million euros.
Cash Benefits and State Support in 2026
Total cash benefits including camp programs and the annual pension boost are set to amount to 894.56 million euros in 2026. These payments will exceed the 2025 estimate by 6.69 percent, reflecting an increase of 56.16 million euros.
State funding for main insurance and other benefits is projected to surpass 14.88 billion euros in 2026 compared with 13.82 billion euros in 2025. Supplementary insurance will also receive 277 million euros in state support next year due to a drop in contribution income associated with the operation of TEKA.
