Greece's Ministry of National Economy and Finance, through remarks by Minister Kyriakos Pierrakakis in a television interview, estimated that the government’s economic policy package and permanent measures announced at the Thessaloniki International Fair will deliver a total benefit of around EUR 1 billion to public sector employees, with the full amount expected to be reflected in their accounts in 2026. The ministry attributed the EUR 1 billion estimate to three components: pay increases for the Armed Forces and Security Corps (EUR 240 million), the fiscal cost of a minimum wage increase that in turn raises public sector wages (EUR 360 million), and lower tax rates for public servants (EUR 400 million). Pierrakakis contrasted this with an estimated EUR 1.35 billion cost for reintroducing a 13th monthly salary, and also stated that changes to how the tax system operates will apply from the New Year, while characterising the measures announced at the fair as permanent.
Ministry of National Economy and Finance (Greece)2025-09-23
Greece's Ministry of National Economy and Finance quantifies EUR 1bn 2026 benefit for public servants from permanent pay and tax measures
Greece's Ministry of National Economy and Finance, via Minister Kyriakos Pierrakakis, announced an economic policy package expected to benefit public sector employees by EUR 1 billion by 2026. The package includes pay increases for the Armed Forces and Security Corps, a minimum wage hike affecting public sector wages, and reduced tax rates. Pierrakakis noted the measures are permanent, contrasting them with the higher cost of reintroducing a 13th monthly salary.