Greece Announces Income Boosts, Tax Cuts to Strengthen Middle Class

08:06 28/3/2025 - Πηγή: iEfimerida

The Greek government is implementing a series of income increases and tax cuts, aiming to bolster the economy and provide tangible relief to citizens, particularly the middle class, amid ongoing concerns about high prices.

The initiative

began with an increase in the minimum wage to €850 per month, effective April 1. While facing opposition criticism for being insufficient, government officials emphasized that the €50 increase surpasses the highest recommendation from labor market institutions.

Furthering its commitment to income support, the government will announce pay raises for military personnel as part of a new pay structure.

Prime Minister Kyriakos Mitsotakis signaled the raises, primarily funded by defense restructuring savings. Reports indicate salary increases ranging from 13% to 20%, depending on rank and risk level, with a minimum annual increase of €1,182 (gross).

Uniformed personnel will also receive a €30 raise due to the minimum wage adjustment and a €100 risk allowance from July 1.

Deputy Prime Minister Kostis Hatzidakis revealed that Prime Minister Mitsotakis will unveil "significant new tax cuts" targeting the middle class at the Thessaloniki International Fair in September. Finance Minister Kyriakos Pierrakakis confirmed upcoming legislation doubling the income eligibility threshold for debt settlement to €42,000, broadening access for middle-class households.

Pierrakakis dismissed the possibility of reinstating 13th and 14th salaries for public sector employees, citing unaffordable costs.

The government maintains its focus on "growing the economy without raising taxes" and responsibly distributing fiscal surpluses.

The Ministry of Labor is also drafting regulations to incentivize sector-wide labor agreements, aiming to raise the average salary to €1,500 by 2027.

Labor Minister Niki Kerameus confirmed these measures will be finalized after consultations with social partners.

By Yiannis Kantellis

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