Greece-2027: what is changing for civil servants and pensioners, what salaries are growing, what taxes are being reduced

All economic measuresannounced by Kyriakos Mitsotakis: what he promised salaries, pensions, taxes and benefits.

Kyriakos Mitsotakis, speaking today in the Greek Parliament, presented the “Road Map” new government for the next 4 years.

The Prime Minister spoke about the government measures that will be included in the multi-budget, and also spoke in detail about the implementation of all promises made during the pre-election period to support households and businesses.

In his policy statements to Parliament, the Prime Minister stressed, among other things, that the family allowance would be increased, the minimum wage would be raised to 950 euros, and the average wage up to 1500 euros by 2027, presumption of income will be reduced by 30%insurance premiums will be reduced, a new public sector wage fund will be created, and the business tax for freelancers will be phased out.

He also named major projects to be implemented, the level of investment, youth support, changes in education, etc.

All measures announced by the Prime Minister:

Greece National Plan for 2027

• Recovery of investment grade and early repayment of bilateral loans under the first memorandum by the end of 2023
• A reasonable primary surplus and a reduction in public debt as a percentage of GDP below 140% by 2027
• Reducing unemployment to 8% by 2027.
• Increase in exports up to 60% of GDP.
• Reducing inequality and raising the minimum wage to €950 and the average wage to €1,500 by 2027.
• By 2027, 90% of the state’s approximately 4,500 administrative procedures will be digitized.
• Initiation of a constitutional review proposed by Parliament in 2025
• Modernization of defense equipment with 24 Rafale fighters, modernization of 83 F-16s to Viper, acquisition of 3 Belharra frigates, delivery of Greek F-35s.

Immediate financial measures

• From 01/01/2024, a new state salary scale with a horizontal increase for all employees after 15 years of service comes into force. Particular attention is paid to remuneration of those who occupy a responsible position, those who have a family.
• Extending the Market Pass for the coming months to cover 10% of the monthly purchases of most households.
• New decline ENFIA by 10% for property insured against natural disasters
• Reduced additional tax deduction of 1,000 euros for families with children.
• Continuation of one-time assistance at the end of 2023 for those who continue to be affected by Katrugalo’s personal differences through a growth surplus.
• For pensioners, working pensioners, the pension will not be reduced by 30%. Instead, they will receive it in full, seeing only a small deduction in their extra income from their second claimed—and now legal—payment.

Medium-term economic measures

• 30% reduction in presumptions.
• Reducing insurance premiums by one more unit.
• Gradual elimination of professional remuneration for freelancers.

Measures to support youth and education

In addition to raising the minimum and average wages, further reducing insurance premiums and increasing the tax-free allowance by 1,000 euros for families with children, the Prime Minister promised:

• Increase in the family allowance for civil servants by 20 euros for the first child and an additional 50 euros for the 2nd child.
• Youth Pass of €150 for each 18 and 19 year old for travel and cultural activities from September.
• The study of the National Plan for the Modernization of School Units will begin in the fall, based on a new architectural specification model that all new school buildings will henceforth follow.
• A six-month training and international certification program for 100,000 employed and unemployed people in in-demand specialties in the field of IT and technology. Certification is a passport for businesses in the field that already require more and more specialized professionals.
• The interstate agreements of article 28 of the Constitution are being activated, which already offer the possibility, under the responsibility of the National Higher Education Authority, to recognize foreign universities that would like to invest in Greece. This will clarify the situation in today’s landscape of post-secondary education. This will pave the way for future reform. article 16.
• Construction of new student hostels for 8500 places.
• Continuation affordable housing program “My House”which has already offered 4,700 homes with affordable mortgages.
• Modernization and expansion of urban transport through new metro lines in Athens and Thessaloniki, as well as electrification of the bus fleet.
• In the conditions of an inclusive society, all national plans for citizens with disabilities, children and for gender equality, for the LGBT+ community (allowing same-sex marriages) are being consistently implemented.

pensioners

In addition to continuing one-time support for distinguished retirees and revisiting reservations for working retirees, the Prime Minister referred to:

• Permanent exemption of former EKAS beneficiaries from any participation in pharmaceutical expenses.
• Pension increase by more than 3% from 01/01/24.

Private sector workers

• Raising the minimum wage up to 950 euros and average salary up to 1500 euros by 2027.
• For pensioners, working pensioners, the pension will not be reduced by 30%. Instead, they will receive it in full, seeing only a small deduction in their extra income from their second declared – and now legal – salary.
• Reduction of presumptions by 30%.
• Reducing insurance premiums by one more unit.
• Gradual elimination of income tax for freelancers.

Civil servants

• Increase in the minimum wage from January 1, 2024.
• Special allowances for responsible positions, as well as for employees with children.

Family support measures

• Increase in family allowance by 20 euros for the first child, by 50 euros for the 2nd child and onwards for civil servants.
• Reduced additional tax deduction of 1,000 euros for families with children.

Health – restructuring of ΕΚΑΒ (Ambulance)

• A special team of 250 motorcycle rescuers is being formed, (in addition to the existing ones) who can drive through traffic jams and traffic jams on motorcycles and outrun ambulances.
• In ΕΚΑΒ, 800 rescuers are recruited (employees of mobile ambulance teams).
• Specialized personnel of the armed forces and fire protection are ready to cover the vacancies in more than 50 regions of Greece.
• Aircraft and crews will be hired for search and rescue operations and primary medical evacuation from remote areas.

Institutions, State and Democracy

• Calculation of the cost of party programs by an independent body of the Hellenic Financial Council.
• National strategy for the management and protection of water resources with a return EYDAP And EYATH under state control from the superfund, where they were transferred by SYRIZA.
• Establishment of an advisory committee to the Prime Minister on artificial intelligence of the most brilliant Greek minds inside and outside the borders of Greece.

Major infrastructure projects

• The construction of the metro in Thessaloniki is being completed.
• The Athens metro is expanding.
• The Patras-Pyrgos motorway is being implemented.
• Implementation of the E-65 axis in Central Greece.
• Implementation of BOAK in Crete (North Road Axis of Crete, which will connect Kissamos with Sitia).
• New airport in Kasteli.
• Double reconstruction of the Botanical Garden.
• New bypass road in Thessaloniki.
• 5,700 small, medium and large projects in each region of the country, totaling more than 60 billion, with 12 regional development plans.

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