Wage increases and pension and reduction in contributions for employees are the positive changes that 2025 brings while a burden due to the increase in contributions brings to freelancers.

The 8 changes of 2025 that were elaborated for protothema.gr by lawyer – labor lawyer George Koutsoukos are the following:

1. Further increase in public pensions and salaries

A 2.4% increase in pensions and an across-the-board increase in public sector wages are planned for 2025, so that a minimum wage for all will apply from now on, protecting all private and public sector workers.

2. Change in the way pensionable earnings are calculated

The increase in wages will be reflected every year in the Wage Change Index, the mechanism of which will be determined by a conclusion drawn up by a working group consisting of officials from the Ministry of Labour, and the National Statistical Service, which was formed by a decision of the Deputy Minister of Labour and Social Security Panos Tsakloglou.

The conclusion will be delivered in the next period and will be followed by an audit and evaluation by the ministry so that it can be implemented from 1/1/2026. Therefore in 2025 the consumer price index will still apply, which will certainly not favour policyholders who were seriously considering filing a pension claim in the new year.

The wage change index is stressed that it will be used for the increase of pensionable earnings , the calculation of the new minimum wage from 1/1/2028 and for the increase of the insurance contributions of self-employed persons from 2025 onwards.

3. Reduction of insurance contributions for employees

From the beginning of 2025, insurance contributions are reduced by an additional percentage point. What does this mean in practice? So-called non-wage costs are reduced. In recent years in the country, non-wage costs have already been reduced by 4.5 percentage points, so we are heading for 5 percentage points, another half a point is not expected to be reduced in 2027. Total 6 percentage points reduction, which employers benefit from.

4. Increase in insurance contributions for self-employed/self-employed

In the opposite direction to the reduction of contributions for employees, the Ministry of Labour is preparing legislation to increase the insurance contributions for self-employed persons for 2025, based on inflation.

The increases are expected to range from 6 to 17 euros per month, which freelancers will be asked to pay from 1 January 2025. From 2026, freelancers’ contributions will be calculated on the basis of the Wage Change Index, which will be compiled by the Hellenic Statistical Authority. This index will also be used for the annual adjustment of the insured persons’ pensionable earnings. However, what will play a decisive role is the increase proposed by the conclusion as the Bank of Greece (BoG) is already talking about the need to increase average wages by at least 5% in order to overcome the consistently problematic course of inflation and to relieve Greek households. However, a similar increase in the contributions of non-employees would constitute a significant burden. If the wage index shows a 5% increase, then the insurance categories of non-employees would have to be increased by an equal amount.

How contributions will be structured for 2025

5. New landscape in minimum wage setting

The new mathematical formula to be adopted will take into account inflation, particularly for households in the lowest 20% of the income scale, as well as the growth of productivity in the economy, based on objective indicators to be created by the Hellenic Statistical Authority (ELSTAT).

The result from the automatic mechanism for adjusting the minimum wage through the new mathematical formula will be strictly adhered to and there will be no room for non-implementation, as is the case with the annual increase in pensions.

The formula will be fully binding on the governments of the day and will not allow any room for intervention, even if the consultation committee, with the participation of all national social partners and ADEDY, makes a well-founded proposal for a different level of pay.

In the 2025-2027 period, a Consultation Committee will be set up, with the participation of all national social partners and ADEDY.

The social partners and economic bodies (e.g. ELSTAT, CBE) will now also participate as a matter of course.

This Committee will give its opinion in an institutional and uniform manner during the transitional process of determining the minimum wage, as well as in the event that the Scientific Committee establishes a deviation from the automatic mechanism for adjusting the minimum wage, e.g. in the event of major economic turbulence.

The aim of the committee is to start the process of determining the basic salary, with the new model, even if it will in fact be implemented three years later.

The target set for a minimum wage of €950 by 2027 was assessed by the Minister of Labour to be entirely achievable.

The role of the social partners from 2028 onwards is drastically reduced, as they will only give their opinion, without being able to even co-determine the level of minimum wages in the country.

6. Strengthening collective bargaining

Following the recent enactment of Law 5163/2024 on the minimum wage, the Ministry of Labour, in close cooperation with the social partners, starts the dialogue for the preparation and adoption of the Action Plan for the strengthening of collective bargaining with necessary institutional measures to shield the framework and increase the coverage rate of collective bargaining.

7. Extend digitalisation in social security

The ongoing digitisation of the insurance history of all insured persons will be taken further. All stamp cards with handwritten reports are being digitized and with the help of AI all this material is being made editable to enable interoperability and faster issuance of pensions. The creation of an Integrated Information System is also progressing.

8. Reductions in reservations in the EAS

The reduction in deductions will be achieved through the adjustment of the Solidarity Contribution for Pensioners (EAS), which is paid monthly by pensioners receiving a primary pension or a total of primary pensions exceeding €1,400. The EAS will be adjusted in 2025, based on the recalibration of brackets in accordance with the pension increase rate. With a 2.4% pension increase projected for 2025, all EAS brackets will automatically increase by the same percentage.