A total of 977 public sector employees will retire from the state machinery in 2027, receiving an average of €116,000 each in tax-free lump-sum gratuities. The state will channel a total of €113.3 million in retirement bonuses into the bank accounts of these departing workers.
The individuals concerned are employed across various sectors of the public service and will step down either upon reaching the statutory retirement age or through early retirement options. Compared to 2026, the allocation designated for gratuities next year marks an increase of approximately €12 million. Specifically, an estimated 926 workers are projected to retire this year, collecting aggregate lump sums of €102.3 million, with individual averages hovering around €110,500.
In 2025, a total of 936 employees retired, receiving lump sums amounting to €101.5 million. Over the past decade, the total sum of gratuities paid out by the state to hundreds of personnel who retired early or at the standard retirement age of 65 approaches €1 billion. Specifically, the state has disbursed an aggregate amount of €939.1 million over this timeframe, with lump-sum expenditures expected to scale up further in coming years.
Breakdown of retirements and allocations
According to the 2027 state budget, the €113.3 million allocated for gratuities will be distributed across various categories of public service personnel. A total of 427 civil servants will retire, receiving €49 million in gratuities, of whom 307 reach the age limit and 120 take early retirement or resign. Meanwhile, 385 educators will step down to collect €44.5 million in lump sums, comprising 325 reaching the standard age limit and 60 taking early retirement.
Furthermore, 55 members of the Police and Fire Service will retire, securing €5.2 million in total lump-sum payments, with 35 reaching age 65 and 20 retiring early. Another 110 members of the National Guard will depart with €13.5 million in gratuities, split between 80 reaching statutory age limits and 30 taking early retirement.
Additional allocations include €600,000 for government workers leaving due to appointments in Public Law Organizations or other entities, €200,000 for temporary onsite personnel and contract soldiers (SYOP) retiring voluntarily, reaching age limits, or due to death, and €300,000 designated for departing state officials. However, persistent loopholes in legislation addressing the abolition of multiple pensions mean certain incumbent state officials will continue working while concurrently drawing a pension.
Rising pension expenditures
Alongside gratuity payouts, the state will disburse €466 million for public sector pensions in 2027, representing an 8 million euro increase compared to the current year, a rise partly attributable to ongoing pension reforms. This compares to €458 million budgeted for former governmental employees this year and €436 million paid out in 2025.
Under the 2027 budget framework, the state will allocate €185 million to retired civil servants and €131.6 million for retired educators. Additional pension disbursements will include €48.8 million for retired police officers and firefighters, €30.8 million for retired military personnel, and €69.8 million dedicated to pensions for widows and orphans of state employees.
