Greece’s 2027 Budget contains both financial benefits and additional costs for different groups of taxpayers. Pension increases, higher wages, reduced social security contributions and relief for debtors are among the measures expected to affect the finances of millions of people in the coming year.

However, some contributors to the social security system, particularly self-employed professionals, will face higher costs as a result of elevated inflation.

The key question, therefore, is not simply how much financial support the Budget provides, but who stands to benefit and who will ultimately bear the additional costs. Here is how the changes will affect each group.

Pensioners

Inflation, which has reached a critical point amid rising energy prices, will determine the size of the pension increases due to be paid to 2.5 million pensioners shortly before Christmas.

According to the draft Budget, consumer price inflation is expected to reach 3.8% in 2026, while economic growth is forecast at 2%.

Under the formula used to calculate annual pension increases, which takes the average of inflation and economic growth, pensions are expected to rise by between 2.8% and 2.9%.

This means the average old-age pension is expected to increase from its current level of €975 gross per month to €1,002.30 in 2027. Lower pensions of €600 will rise by €16.80, while higher pensions of €2,500 will increase by €65.

On an annual basis, pensioners receiving the lowest payments will gain €202, while those in the middle-income bracket will receive an additional €300 to €450. Pensioners receiving up to €2,000 will benefit by as much as €630 annually, while those with pensions exceeding €2,700 will see increases of approximately €850 a year.

The national pension component will also increase for all existing pensioners and those retiring during 2027. Assuming a 2.8% rise, the amount will increase from €446 to €458.48.

The most significant change to this year’s pension increases, which will be paid in December, is the complete abolition of the so-called personal difference mechanism. This will allow approximately 670,000 pensioners to receive actual increases in their monthly payments for the first time, rather than adjustments that previously existed only on paper.

In addition to increases in main pensions, the draft Budget also highlights the €400 financial support payment scheduled for November this year, as well as the abolition of the 50% reduction in survivors’ pensions that previously applied after the first three years.

Employees

Average nominal earnings per employee are forecast to increase by 3.9% in 2027, compared with 3.7% in 2026. Total employee compensation, including social security contributions, is expected to rise by 4.6%, up from 4.4% in 2026.

These figures reflect continued wage growth, including another planned increase in the minimum wage, corresponding pay rises for public sector employees and the introduction of a Christmas bonus for civil servants and public officials from 2027.

However, after adjusting for inflation, average earnings per employee are expected to increase by just 1.4% in real terms in 2027, as nominal wage growth coincides with easing inflation.

The minimum wage is expected to increase in two stages, reaching €1,000 gross per month by 2028, or €1,300 gross when seniority-related increments are included.

Meanwhile, from 1 April 2027, social security contributions for private sector employees will be reduced by 0.5 percentage points through a cut in contributions to the Public Employment Service (DYPA).

The measure is expected to cost the government €163 million in 2027 and €218 million in 2028. As a result, the overall social security contribution rate will fall to 34.66% in 2027, comprising 12.87% paid by employees and 21.79% by employers.

Relief for debtors through 120 instalments

Business organisations have welcomed the introduction of a 120-instalment repayment scheme for debts owed to Greece’s social security agency, EFKA, describing it as a measure that could provide significant cash-flow relief to thousands of small and medium-sized businesses.

According to employment lawyer Giorgos Koutsoukos, the crucial requirement for taking full advantage of the new arrangement is that the outstanding debt must exceed €3,600.

“The minimum payment threshold of €30 protects EFKA from collecting negligible amounts, such as €10 a month, over a period of 10 years. If your debt exceeds €3,600, you will be able to benefit from the full 120-instalment arrangement. If it is below €3,600, the number of instalments will simply be reduced until the monthly payment reaches €30,” Koutsoukos explained.

Self-employed professionals

Self-employed professionals will also be affected by inflation, facing higher social security contributions from the beginning of next year.

Assuming contributions rise in line with the projected inflation rate of 3.8%, the monthly payment for the first social security contribution category, selected by 80% of self-employed contributors, will increase from €250.77 to approximately €260.

Payments in the higher contribution categories will increase further, potentially discouraging contributors from remaining in those brackets and prompting them to switch to the lowest category.

An alternative proposal to link contribution increases to a wage index remains unresolved, having already been postponed twice.

Whenever the wage-index system is introduced, however, the increases faced by the 1.4 million self-employed professionals and independent workers contributing to EFKA are expected to be considerably greater.

According to the latest report from the Hellenic Statistical Authority (ELSTAT), earnings rose by 4.5% in the second quarter of 2026, indicating that a wage-linked adjustment would result in higher contribution increases than those calculated using the inflation rate.