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:
- 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.
Ask me anything
Explore related questions