The “road map” for the new hires coming to the public sector, as well as the wage and pension increases through 2029, is outlined in the Multiannual Fiscal Program 2026–2029, presented to the Cabinet last Thursday by the Minister of National Economy and Finance Kyriakos Pierrakakis and Deputy Minister Thanos Petralias.

Although it extends beyond the typical term of a government, the Multiannual Fiscal Planning has become an institution and a national obligation. It is the first drafted under the new fiscal rules that have come into force across Europe and, from now on, will accompany the submission of the state budget every November. Essentially, it marks the starting point of economic policy, as states now design four-year budgets, securing the “green light” from Brussels that they are not deviating from the framework set by fiscal rules and the Medium-term Program approved for each country by the European Commission.

Starting with the new measures to be implemented for the first time in 2026 — with the increase of the average salary to €1,500 and the minimum wage to €950 in 2027 — the Multiannual Program outlines continuous wage and pension increases every year, a further drop in unemployment, and more than 148,500 new hires in the public sector by 2029.

Income boost of €10 billion over five years

According to the Multiannual Fiscal Program (MFP 2026–2029), with all the fiscal interventions legislated and planned for the 2026–2029 period, the State Budget will contribute more than €10 billion to citizens’ incomes. Compared to 2024, this benefit breaks down per year as follows: €3.04 billion for 2025, rising to €5.94 billion in 2026 (+€2.9 billion compared to 2025), €7.94 billion in 2027 (+€2 billion compared to 2026), €9.01 billion in 2028 (+€1.07 billion compared to 2027), and a total of €10.1 billion in 2029 (+€1.09 billion compared to 2028), based on current fiscal margins.

The largest hiring wave

For the 2025–2029 five-year period, 148,533 hires in general government entities are expected, compared to 109,540 departures. In 2026 alone, 35,840 hires are planned, on top of the 31,434 expected to be hired by the end of 2025, according to the MFP 2026–2029.

These new positions will far exceed the 1:1 rule (one hire for each departure) and will occur in waves: 26,875 hires in 2027, another 26,875 in 2028, and 27,277 more in 2029, compared to an annual rate of 21,644 departures during the same period.

However, these figures reflect only the hires already planned and budgeted, without including additional future hiring needs that may be determined based on State requirements and budget capacity.

Increases above inflation

At the same time, employment is expected to rise, unemployment to decrease, and incomes to grow in both the public and private sectors — increases that will outpace inflation.

The average nominal salary reported by employers to ERGANI is expected to reach €1,500 in 2027, up from €1,342 in 2024, with an intermediate level of around €1,440 in 2026.

The minimum wage, currently at €880, is expected to gradually rise to €915–€920 (final rate to be announced in April 2026) and to €950 in spring 2027.

Public-sector employees will also receive a new horizontal increase in 2026, equal to the increase in the minimum wage, amounting to an additional €360 million. At the same time, unemployment is forecast to fall to its lowest level since 2008 (8.6% in 2026), marking a 50% drop within a few years (from 17.3% in 2019).

These increases are calculated on nominal wages. But from 2026 onward something changes: due to tax and contribution reductions starting January 1, net take-home pay will increase for millions of workers.

According to MFP data, compared to this year, in 2026 net average wages (after taxes and contributions) are expected to rise by 5% over 2025 — more than double the expected inflation increase, which is not expected to exceed 2.2%.

Evolution of Key Labor and Income Indicators 2019–2026

Multiannual Program 2026–2029: 148,500 new hires in the public sector – What it provides for salaries, pensions, and prices up to 2029

What comes next

The plan to strengthen real incomes is not just a response to social needs or pressures but a strategic component of the government’s roadmap to achieve its economic and fiscal goals.

As stated in the Multiannual Program:
“Implementing permanent income-enhancing policies within fiscal targets affects the vast majority of citizens and leads to improved household purchasing power and support for domestic demand, with a permanent effect on disposable income. In 2026, private consumption is expected to increase by 1.7%, driven by income policy measures in both private and public sectors, positive labor market developments, inflation easing, and improved consumer sentiment.”

How this translates into the future of wages and employment

According to the Multiannual Fiscal Program 2026–2029:

• Nominal (“gross”) wages reported in ERGANI show that the average salary in the country is now nearly 30% higher than in 2019, while those earning the minimum wage will see a 35.4% increase by 2025, over 40% by 2026, and nearly 50% by 2027 when it reaches €950 gross.
• As for take-home pay, net average earnings have risen 26% from 2019 to 2025, and by 2026 the increase will reach 32.3%. From 2024 onward, increases seem to stabilize around 5–6% annually.

The paradox arises when adjusted for inflation: while prices since 2019 have risen 19.5% (reaching 22.1% in 2026), net wages will have risen by 32.3% — meaning increases in net dependent-employment income cumulatively exceed inflation by almost 50%.

If wages had only been adjusted according to inflation, without any additional policies or economic growth, the average worker’s net salary would be 10 percentage points lower than it is projected to be in 2026, and the minimum wage 18 percentage points lower.

€14 billion “package” for pensions up to 2029

For retirees, pension expenditure is expected to rise by €1.4–€1.6 billion annually. Pension spending is expected to increase from €34.3 billion in 2025 to €40.1 billion by 2029.

Compared with current levels, pension increases for 2026–2029 will surpass €14 billion cumulatively. This includes the cost of annual pension adjustments and the gradual elimination of the “personal difference” offset mechanism.

With this change, 2026 will be the first time in 15 years that 671,000 pensioners will receive 50% of the increase others have been getting in recent years. From 2027 onwards, they will receive 100% annually, like all other pensioners.

Additionally, 1.4 million low-income pensioners over 65 with incomes up to €14,000 (single) or €26,000 (married) will receive an additional €360 million annually each November — a €250 social support they received for the first time last week.

Multiannual Program 2026–2029: 148,500 new hires in the public sector – What it provides for salaries, pensions, and prices up to 2029

New interventions for 2027 and beyond

The Multiannual Plan includes all measures starting in 2027 and onward. Aside from the full elimination of the pension personal-difference offset, notable new measures include:

· full abolishment of ENFIA for primary residences in settlements with populations up to 1,500 residents from 2027
· reduction of social security contributions by an additional half percentage point from 2027
· significant reduction of the final tax paid by self-employed professionals on income declarations submitted for 2026 profits
· significant tax reduction or full exemption in 2027 for property owners renting out previously vacant properties