There are huge differences in public and private sector pensions, as recorded in the latest figures in the report «Sun». The new pensions due to old age from the public sector were formed – on average – at EUR 1,420 mixed last March, while the new old-age pensions issued to young pensioners from the other EFC Funds (IKA, OAEE, EBRD, etc.) were averaged at EUR 930 mixed.
The gap reaches 490 euros, with public sector pensions being 52.6% higher than those in the private sector, while the distance rather than getting shorter.
In other words, the general level of pensions may improve year by year due to increases, but in new pensions the existence of a large number of pensions remains, depending on the place where the pensioner comes from.
Private sector pensions are not only lower than public sector pensions, but even their rate of increase falls short of the increase in public pensions. In March 2026 the average main old-age pension paid by young pensioners from private sector funds was set at EUR 930 gross of EUR 918 a year ago. Therefore between March 2025 and March 2026, the average old-age pension for new private sector funds increased by just EUR 12 or 1.2%.
In the new pensions of the State the average main old-age pension paid by the new pensioners in March 2026 amounted to 1,420 euros gross, while in March 2025 it was set at 1,378 euros. The increase between March 2025 and March 2026 in the average public old-age pension is EUR 42, i.e. an increase of 3%.
The reasons
The reasons that lead new public pensioners to higher pensions than new private sector pensioners are as follows:
Civil servants have fixed earnings and fixed increases during their working life, so their pension is improved on the basis of which the pension is calculated. In the private sector, increases are not horizontal and do not follow the same stability as the public sector.
Employment in the public sector increases every two years due to a change in the wage scale. Something that doesn't exist in the private sector.
Private sector pensioners generally have fewer years of insurance than public pensioners, thus calculating their pensions at lower rates of replacement.
In the public sector, the majority of insured persons are retired under a full pension scheme and not reduced, as opposed to those insured in private sector funds, who – largely – come out with a reduced pension because they do not complete the conditions for a full pension.
Source: OT
