Couples of pensioners who will receive double support now that income and asset criteria no longer apply, along with employees with three seniority increments who will be earning 1,300 euros by early 2028, are the biggest winners from the new support measures announced at the Thessaloniki International Fair (TIF). By contrast, new employees without prior work experience benefit less, while pensioners under 65 remain excluded from the support altogether. The announcements also failed to include relief from the special solidarity levy, which weighs on around 400,000 pensioners receiving pensions above 1,400 euros.
Benefits for employees
More than 1.5 million private sector employees paid the minimum wage will receive a 40 euro increase from 1 April 2027, when their wage rises to 960 euros gross from 920 euros today.
At the same time, from 1 April, social security contributions will be cut by half a percentage point for private sector workers, whose net pay will rise by about 5 euros a month as a result. Public sector employees of all pay grades will receive a corresponding 40 euro gross increase, though the contribution cut will not apply to them.
In January 2028, the minimum wage will reach 1,000 euros in both the public and private sectors, meaning a private sector employee with three seniority increments will be earning 1,300 euros from the start of 2028. According to government announcements, the aim is for the average wage to reach 1,800 euros by 2030.
The overall increase in the minimum wage since 2021, when it stood at 650 euros, will amount to 54%. The rise also feeds through to related benefits and allowances, including unemployment benefit, maternity benefit and overtime pay.
According to examples from the Finance Ministry, the 40 euro wage increase in April 2027, a further 40 euros in January 2028, combined with the cut to social security contributions from April 2027, will have the following effects.
- For a 23 year old with no seniority increments, the gross wage will rise from 920 to 960 euros in April 2027 (with contributions cut by 0.5%) and to 1,000 euros in January 2028. Net pay will rise from 797 to 836 euros in April 2027 and to 871 euros in January 2028. Overall, compared with this year, they will receive an extra 414 euros in 2027 and 1,040 euros net in 2028.
- For an employee aged 34 with three seniority increments and no children, the gross wage will rise from 1,196 to 1,248 euros in April 2027 (with contributions cut by 0.5%) and to 1,300 euros in January 2028. Net pay will rise from 959 to 999 euros in April 2027 and to 1,035 euros in January 2028. Overall, compared with this year, they will receive an extra 420 euros in 2027 and 1,055 euros net in 2028.
- For a 45 year old with three children and a gross wage of 2,000 euros, net pay will rise from 1,621 to 1,733 euros from January 2027 due to the zeroing of tax, and to 1,743 euros from April 2027 due to the cut in social security contributions. Overall, compared with this year, they will receive an extra 1,673 euros net in 2027.
- For a 40 year old with one child and a gross monthly wage of 3,000 euros, net pay will rise from 2,109 to 2,119 euros from April 2027 because of the cut to social security contributions. It is worth noting, however, that in many businesses a rise in the minimum wage also pulls up pay at higher salary levels.
Losers in this scenario are employees paid just a little above the minimum wage, since it is not certain their employer will grant them a rise, and they are not entitled to a seniority increment unless one is provided for in their collective agreement. Also losing out are low paid workers who have not yet built up seniority increments and must wait years for their pay to rise on that basis.
Public sector employees
For 720,000 public sector employees, a Christmas bonus of 500 euros gross will be introduced from December 2027. The bonus will be permanent and will also count towards pension entitlements. In addition, basic pay will rise by 40 euros in April 2027 and by a further 40 euros from January 2028, a total of 80 euros.
Together with the annual increases, a 40 year old employee with two children on a net salary of 1,450 euros will see a net increase of 562 euros in 2027 and 432 euros in 2028.
Pensioners
The annual support payment to pensioners will rise to 400 euros net and will become permanent from November 2026 for all pensioners over 65 (an extra 270,000 beneficiaries, bringing the total to 2.2 million recipients). The same amount will go to widowed pensioners over 60 who receive only a widow’s or widower’s pension, to people with disabilities, and to uninsured elderly people. The payment will be made on Monday 30 November, though amounts are usually credited to accounts from the preceding Friday.
The biggest winners are:
- couples of pensioners who will receive double the support, since income and asset criteria have been abolished
- 270,000 pensioners over 65 who did not previously receive the annual 250 euro benefit, but will receive 400 euros directly on 30 November
- 2 million pensioners, vulnerable people and people with disabilities who previously received 250 euros and will receive 400 euros from this year
Losing out in this case are pensioners under 60 on low pensions, who are not entitled to the 400 euro payment, unlike a pensioner on a high pension who will receive the support since income criteria are not taken into account.
At the same time, at the end of December all 2.5 million pensioners will be brought into the cycle of annual increases, since the so called “personal difference” mechanism will be permanently abolished. The full increase will now be granted, including to 670,000 pensioners who still have a remaining personal difference balance.
Losing out, however, are around 400,000 pensioners on pensions above 1,400 euros, who are subject to the special solidarity levy. Although relief from the levy had been under consideration, it was not included among the measures announced at the fair. It is not ruled out, however, that relief could be reconsidered following the ruling on the related case at Greece’s Court of Audit, the country’s top audit court, expected in October.
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