Greek PM unveils 2.2bn tax cuts, wage hikes and pension boost in Thessaloniki speech
Greek Prime Minister Kyriakos Mitsotakis announced a €2.2 billion package of tax cuts, wage hikes and pension support during his annual economic speech in Thessaloniki on Saturday.
The measures include a permanent €400 annual supplement for 2.2 million pensioners over 65, starting in November 2026, alongside a one-time Christmas bonus of €500 for public sector workers from December 2027. The minimum wage will rise to €1,000 by January 2028, with an intermediate increase above €950 in April 2027. Public sector salaries will also see monthly increases of up to €80 by January 2028, with additional benefits for families and disabled individuals.
Mitsotakis framed the moves as part of a broader strategy to boost disposable income, citing Greece’s budget surplus and 2.1% economic growth last year. The package also includes tax relief for self-employed professionals, farmers and rural residents. The announcements came as thousands protested in Thessaloniki over rising living costs, with labor unions criticizing low wages and high prices .
The prime minister, seeking a third term in elections expected next April, linked the measures to Greece’s post-crisis recovery, stating, “As the country stabilizes, there will be relief from heavy taxes, higher incomes and bold reforms” .
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