Pension increases, tax reductions, a new adjustment of the minimum wage and the benefits linked to it are set to take effect in 2026, following the approval of next year’s State Budget by Parliament last week.

Employees, pensioners, families with children, young people, professionals, and property owners living in small settlements will benefit from the tax relief measures and other positive interventions provided for in the Budget. The total benefit from tax cuts and income increases amounts to €2.9 billion for the whole of 2026. Tax bonuses and benefit payments will gradually be felt in beneficiaries’ pockets over the coming months.

Indicative below is the month-by-month timetable of what beneficiaries can expect from now through April 2026.

Pension Increases and Cuts to the “Personal Difference”

On Monday (22 December), the increased January 2025 pensions will be paid to beneficiaries from the public sector, IKA, and NAT funds. Pensions will rise by 2.4%, while beneficiaries will also gain from lower tax withholding under the new tax scale with reduced rates, effective from 1 January 2026.

For tens of thousands of pensioners, the “personal difference” will be cut in half from next year (before being fully abolished in 2027). This means that only 50% of the increase will be offset against the personal difference.

It is recalled that in November, a permanent annual benefit of €250 was paid to low-income pensioners, people with disabilities, and uninsured elderly citizens, along with the refund of one month’s rent.

Higher Net Income from Lower Tax Withholding

From 1 January 2026, the new tax scale comes into force, benefiting large groups of taxpayers through reduced tax withholding due to lower rates. This will result in higher net income, with even greater gains for employees with children, due to further reductions in tax rates for families.

The biggest winners are young people, for whom tax rates are reduced to zero.

In January 2026, salary increases will also be paid to approximately 75,000 members of the armed forces, including retroactive amounts dating back to October 2025.

Additionally, from 1 January 2026, residents of the islands of the North Aegean Region, Evros prefecture, and the Dodecanese will benefit from a 30% reduction in VAT, while households nationwide with subscription television services will be exempt from the special levy currently imposed.

Half ENFIA and Lower Imputed Income

In March 2026, around 1 million property owners living in settlements with up to 1,500 residents will see a 50% reduction in their ENFIA property tax. In Evros, Western Macedonia, and border regions of mainland Greece, the population threshold rises to 1,700 residents.

In the same month, approximately 470,000 taxpayers will pay less tax due to reduced imputed living expenses for homes and vehicles.

Significant tax relief will also be enjoyed by self-employed professionals living outside Attica in settlements of up to 1,500 residents (and up to 1,700 in border areas), thanks to a 50% reduction in the minimum imputed income.

New Increase in the Minimum Wage

In April, the minimum wage will be increased again, pushing up the earnings of hundreds of thousands of employees, as well as unemployment benefits, which will be adjusted accordingly.

It is noted that the increase in the minimum wage—currently set at €880—will also lead to higher maternity benefits, seniority allowances, overtime pay, and a range of other benefits linked to it.