The year 2026 arrives with new conditions in Greece’s tax and labor landscape. Relief measures, increases in minimum wages, and a series of changes that directly affect households and businesses. Who benefits, who loses, and what changes for employees who complete a three-year employment period in the coming year?

Relief for households and businesses

The new year begins with reductions in income tax and VAT for households and businesses. The indirect increase of the tax-free threshold through lower tax rates—especially for younger earners and households with children—provides relief to millions of salaried workers and pensioners.

In particular, households with low and middle incomes (approximately €15,000 to €60,000 annually) will see noticeable relief. Especially favored as of now are residents and businesses on 20 Aegean islands, where VAT is reduced by 30%, as well as property owners in more than 12,000 small settlements across the country due to a 50% reduction in ENFIA (property tax). In these areas, the presumptive income of freelancers and the self-employed is also drastically reduced.

Increase in minimum wages

In 2026, the minimum wage is expected to rise to around €930 per month, giving thousands of workers some breathing room. From April, this increase will boost employees’ income and will also extend to the salaries of all public sector employees. At the same time, all welfare benefits linked to the minimum wage will increase, while, on the other hand, the presumptive income of freelancers will also rise accordingly.

Those who complete a three-year employment period in 2026 will also see gains—namely, thousands of workers who entered the labor market before 2023. Completion of three years provides new opportunities regarding benefits, pensions, and social allowances. Employees who have completed three years of continuous employment will see additional pay increases and will also benefit from the new tax regulations that favor employment.

“Everyone gains something”

The combined impact of the new measures is significant: taxes are reduced, tax-free thresholds increase, the minimum wage rises for low-paid workers who do not directly benefit from tax cuts, and new momentum is given to employment through hiring and income increases.

Overall, the measures that will take effect in the new year and strengthen households and businesses, as provided for in the new 2026 budget, are the following:

1. 1. Across-the-board increase in public sector salaries so that the entry-level salary does not fall below the minimum wage level
2. 2. Increase in pensions based on GDP growth and inflation rates
3. 3. Reduction of social security contributions by 1% in 2025 (and an additional 0.5% in 2027)
4. 4. Reform of the income tax scale with emphasis on families with children, young people, and the middle class
5. 5. Social benefit of €250 every November for pensioners, uninsured elderly persons, and people with disabilities
6. 6. Refund of one month’s rent annually
7. Reduction of rental income tax with the introduction of an intermediate tax rate of 25%
8. 8. No offsetting of 50% of pension increases against the personal difference of pensioners in 2026 (full abolition of offsetting from 2027)
9. 9. Reduction of excise duty on fuel for farmers under a new system
10. 10. Reduction of VAT by 30% on islands of the North Aegean region, Evros prefecture (Samothrace), and the Dodecanese prefecture with populations up to 20,000
11. 11. Reduction of ENFIA by 20% for primary residences of individuals with taxable value up to €500,000 that are insured against natural disasters
12. 12. Reduction of income tax for building upgrade expenses in 2026 as well
13. 13. Income tax exemption for vacant properties or properties in short-term rental that are converted to long-term rental (extension for 2026)
14. 14. Gradual abolition of ENFIA for primary residences in settlements with populations up to 1,500 (50% reduction in 2026 and full abolition in 2027)
15. 15. Reduction by 50% of the minimum presumptive income for freelancers in settlements outside Attica with populations up to 1,500 and for school canteens
16. 16. Exemption from the minimum presumptive income for new mothers during the year of birth and the following two years
17. 17. Reduction of living expense presumptions for everyone
18. 18. Abolition of the subscription television levy
19. 19. Reform of the Armed Forces pay scale
20. 20. Savings from restructuring the Armed Forces
21. 21. Increase in compensation for conscripts from €8.8 to €50–€100
22. 22. Reform of the pay scale for the Security Forces (Hellenic Police, Fire Service, Hellenic Coast Guard)
23. 23. Separate taxation of on-call duty payments for National Health System doctors
24. 24. Reform of remuneration for employees of the Ministry of Foreign Affairs
25. 25. Salary recognition of integrated master’s degrees from the Polytechnic and other university schools with five-year programs
26. 26. Introduction of a tax-free library allowance for faculty members and researchers
27. 27. No offsetting of the personal difference for public sector employees
28. 28. Extension of exemption from pharmaceutical expenses for low-income pensioners
29. 29. Abolition of age restrictions for granting the deafness/hearing impairment allowance
30. 30. Extension of the increase in the pharmaceutical expenditure ceiling by €100 million annually
31. 31. Increase in the healthcare spending limit for diagnostic centers and private clinics
32. 32. Distribution of high-cost medicines by EOPYY through private pharmacies
33. 33. Reduction of the digital transaction fee for a range of transactions (corporate loan interest, building permits, loans for use, marriages, insurance contracts, etc.)
34. 34. Incentives for innovation, mergers, and business acquisitions
35. 35. Tax exemption for voluntary benefits provided by businesses in favor of new parents