The Greek government is preparing a comprehensive package of economic measures, to be unveiled by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF). The aim is to provide financial relief to the middle class and families, while promoting tax justice and sustainable growth.
Salary and Pension Increases from January 2026
- Main pensions will rise by about 2.4%, based on forecasts of 2.4% inflation and 2.3% GDP growth in 2025.
- Both the national and earnings-related pension components will be adjusted.
- A reduction in income tax withholding will ensure that beneficiaries see an immediate net increase in their income.
Challenge of the personal difference: Around 650,000 pensioners currently excluded from nominal increases due to the “personal difference” mechanism may be partly integrated through offsetting measures, ensuring more beneficiaries experience tangible relief.
New Income Tax Scale and Permanent Tax Reductions
- A radical overhaul of the income tax system will apply to employees, pensioners, farmers and the self-employed.
- More than 3.5–4 million taxpayers with incomes above €10,000 will benefit.
- The middle-income bracket (€15,000–€40,000) will see the largest gains, aiming to support fair wages and curb tax evasion.
- The impact will be visible immediately in January 2026 paychecks and pensions, with lower withholding.
Support for Families and Demographic Policy
- Special provisions for families with children, with stronger relief for large families.
- Linked to tackling Greece’s demographic challenge, as births are projected to fall below 65,000–70,000 this year.
- Support measures include:
- A birth allowance equivalent to the minimum wage for 9 months
- Expanded nursery and childcare coverage for new parents
Interventions in Rental Income Taxation
- Tax cuts on rental income, aimed at encouraging the release of vacant housing stock and easing pressure on the rental market.
Working Pensioners
- Pensioners who are also employed will not be pushed into higher solidarity contribution brackets if their pensions rise, safeguarding net income increases.
Targeted Allowances for the Most Vulnerable
- In November 2025, a €250 allowance will be granted to low-income pensioners, uninsured elderly, and persons with disabilities.
- Eligibility criteria (income and property-based) will remain unchanged to ensure fairness.
The government’s TIF package is presented as a significant economic intervention, with four main pillars:
- Higher net disposable income
- Permanent tax reductions
- Targeted family support
- Greater tax fairness
Government officials stress that the measures will deliver immediate results in citizens’ pockets, while remaining consistent with EU fiscal rules and Greece’s budget surpluses.
Source: pagenews.gr