Greece announces €2.2 billion package with wage and pension increases

Economic package structure

Greek Prime Minister Kyriakos Mitsotakis presented a €2.2 billion economic package for 2027 during his address at the 90th Thessaloniki International Fair on Saturday. Titled "Growth Dividend for All" and presented as an "Agreement of Progress and Prosperity", the government initiative focuses on four main pillars: disposable income growth, public and private investment incentives, targeted social policy covering housing and demography, and energy cost reductions. While most measures take effect on 1 January 2027, selected interventions will roll out as early as November 2026. The interventions cover salaried workers in both sectors, pensioners, independent professionals, and agricultural producers across Greece.

Pension and disability support

Retirees will receive an increased permanent annual allowance of €400 net, up by €100 from the previous €300 level, beginning in November 2026. The criteria expand to include all pensioners over the age of 65, reaching 2.2 million people. In addition, the government abolished previous cuts to survivor pensions. Official calculations show that a pensioner with a monthly net income of €823 will gain an additional €208 from the annual pension adjustment plus the €400 allowance, totaling €608 net annually. Retirees earning €1,086 monthly will see a total net annual gain of €684, while those on €1,716 monthly will gain €849 per year. For 218,000 citizens with disabilities, the plan introduces a permanent annual inflation-adjustment mechanism starting in 2027, replacing one-off payments with an estimated average gain of €220 per recipient.

Wages and employment measures

Civil servants will receive a restored Christmas bonus of €500 gross, scheduled for its initial disbursement in December 2027. Public sector base wages will also climb by up to €80 gross per month by January 2028, reflecting adjustments linked to statutory minimum wage increases. Government calculations show that a 40-year-old public employee with two children currently earning €1,447 net per month will gain €562 net in 2027 and €402 in 2028, yielding a cumulative benefit of €964. In the private sector, the statutory minimum wage will rise to €1,000 per month by January 2028, reaching €1,300 for workers with full three-year seniority allowances. In April 2027, employee social security contributions will fall by 0.5 percentage points alongside the minimum wage update.

Taxation, business and energy reforms

Independent professionals will see lower presumptive tax assessments through the removal of turnover and payroll surcharges, with assessment levels halved in settlements under 2,000 residents and under 2,900 in Central Macedonia. The tax advance rate for businesses decreases from 55% to 50% in 2027, followed by successive five-percentage-point reductions each year starting in 2028. Professional farmers earning up to €20,000 will pay zero income tax, supported by additional European Union funds for livestock sector reconstruction. On energy and housing, wholesale electricity prices will fall by 30% gradually from 2027 to 2029, accompanied by a 50% cut in public service obligation charges on household bills from January 2027. The €2 billion "Spiti Mou 3" housing program will launch via the Hellenic Development Bank, while ENFIA property tax is eliminated in settlements with up to 2,000 residents, and up to 2,200 in Western Macedonia.