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> Economy

The “roadmap” of benefits for 5 million citizens – How €2.5 billion will be distributed by April

Support measures totaling more than €2.5 billion will reach over 5 million citizens of the country by April 2026, starting this October. These include double or even triple income increases for certain groups, as well as significant tax and burden reductions

Newsroom September 21 09:19

The largest raises will go to personnel of the Security Forces and Armed Forces, pensioners, employees with annual incomes above €10,000, young people up to 30 years old, families with three or more children, and public sector employees. Significant support will also go to renters, as in November a permanent rent rebate of up to €800 per household will be introduced for the first time. In addition, next April will see the sixth increase of the minimum wage, surpassing €900, which will also raise a series of allowances.

Month-by-month breakdown of support:

October 2025
More than 150,000 Armed Forces and Security Forces personnel will see substantial income increases due to a new pay scale. On average, Armed Forces staff will receive an extra €145/month and Security Forces staff €111/month. Together with April’s raises for public servants and a €100 increase in the hazard allowance since July, these boosts mean personnel will effectively gain 1.5–2 additional monthly salaries per year. The cost of the new pay scale alone is €270 million annually—the largest pay rise in at least 20 years.

November 2025

  • A permanent €250 allowance will be paid to over 1.4 million pensioners and beneficiaries (aged 65+ with incomes up to €14,000 for singles/€26,000 for couples, disability pensioners, and uninsured elderly). Cost: €360 million annually.
  • The permanent rent rebate will be paid for the first time to about 1 million households. The annual rebate is capped at €800 per main residence, plus €50 per dependent child. Families renting both a home and student housing will receive double support. Cost: €230 million annually.

December 2025
Pensions for January (paid before Christmas) will include:

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  • The regular annual increase (estimated 2.3–2.5%).
  • A 50% personal-difference allowance for 670,000 pensioners (as announced at the Thessaloniki International Fair).
    By 2027, the personal-difference allowance will be fully phased out. Cost: €75 million in 2026, €210 million in 2027. The total cost of pension increases in 2026: €467 million.

January 2026
The tax reform begins: employees (public and private) and pensioners with incomes above €10,000 will see higher net pay thanks to reduced withholding. Key changes:

  • Tax brackets lowered by 2% from €10,000–40,000.
  • New 39% bracket for €40,000–60,000, with 44% above €60,000.
  • Extra relief for families with children (down to 0% for families with 4+ children).
  • Full exemption on income up to €20,000 for youth under 25; 9% for €10,000–20,000 for ages 26–30.

Officials describe this as the largest tax cut since the restoration of democracy, with a fiscal cost (and corresponding citizen benefit) exceeding €1.6 billion annually.

April 2026
The sixth minimum wage hike will push it above €900 (gross). About 600,000 minimum-wage workers and 700,000 public servants will benefit directly—over 1.3 million employees in total. Cost: €360 million annually. This increase will also raise ~20 allowances, including unemployment, parental leave, maternity, and marriage benefits.

Additional 2026 measures include:

  • 50% reduction of ENFIA property tax in 2026 and full abolition in 2027 for primary residences in settlements under 1,500 residents (€75 million cost).
  • 30% VAT reduction in remote islands with populations under 20,000 (€25 million cost).
  • Extension of 3-year income tax exemption for long-term rental of previously vacant homes.
  • Extension of VAT suspension for new housing construction.
  • Higher foreign-service and special-duty allowances for Foreign Ministry staff.
  • Tax-free “library allowance” for university faculty and researchers.
  • Pay-scale recognition for 5-year polytechnic and similar degrees, benefitting 5,000+ civil servants.
  • Abolition of the pay-TV subscription tax, aiding 1 million+ subscribers.

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