Kyriakos Mitsotakis: The 45 measures for wages, pensions, and housing announced

The interventions for 2025, extending to 2027, outline a complete roadmap to the future, fulfilling the government’s pre-election commitments to improve citizens’ living standards and converge with the rest of Europe.

Prime Minister Kyriakos Mitsotakis presented a comprehensive reform plan with interventions aimed at increasing incomes, developing the country’s productive potential, reducing inequalities, and addressing key issues such as housing and demographics in his speech at the 88th Thessaloniki International Fair.

The interventions for 2025, extending to 2027, outline a complete roadmap to the future, fulfilling the government’s pre-election commitments to improve citizens’ living standards and converge with the rest of Europe.

The Prime Minister’s priorities are clear: raising the average income in both the private and public sectors as well as pensions, protecting families and vulnerable groups, addressing housing issues, and supporting entrepreneurship.

Here are the 45 measures announced by Kyriakos Mitsotakis:

1. From January 1st, social security contributions will be reduced by 1%, instead of the originally planned 0.5%.
2. From January 1st, more than 2 million pensions will increase by 2.2% to 2.5%.
3. From April, the minimum wage will increase from €830, aiming to reach €950 by April 2027, automatically raising allowances and bonuses.
4. In December, 670,000 pensioners with incomes up to €1,600 and still with personal differences will receive up to €200.
5. 767,000 Child Allowance beneficiaries will receive an additional payment in December.
6. 220,000 disability allowance beneficiaries from OPEKA and EFKA, along with 35,000 uninsured elderly, will receive a €200 bonus.
7. 205,000 Guaranteed Minimum Income beneficiaries will receive a 50% increase.
8. From spring, nearly 700,000 public servants will see new annual increases, gradually reaching up to €100 per month.
9. On-call pay for NHS doctors will be taxed at a flat rate of 22%, resulting in an average monthly pay increase of €130.
10. An additional incentive of up to €7,200 annually for doctors staffing remote healthcare facilities.
11. Free afternoon surgeries for 37,000 citizens, funded by the Recovery Fund.
12. A new “Marietta Giannakou” program for upgrading and renovating hundreds of schools, with €250 million from the Public Investment Program, aiming to increase this amount through private donations.
13. A 20% increase in nighttime pay for uniformed officers (Armed Forces, Coast Guard, Police, Fire Brigade).
14. The Business Tax will be fully abolished, saving €325 annually for every self-employed person or individual business.
15. The minimum taxable amount for freelancers will be reduced in areas with 1,500 residents instead of 500, and the employee wage cap will be calculated comparatively, not cumulatively.
16. The 5% Special Fixed Telephone Tax for fiber connections over 100Mbps will be abolished.
17. Childcare allowances will be increased by €20 million, with 173,000 vouchers and 20,000 new childcare places.
18. Employers offering up to €5,000 annually in benefits to new parents will be tax-exempt for that amount, which will increase for each new family member.
19. Convergence of benefits for families with three children and those with many children, regardless of income, from public service appointments to university entry and participation in Social Tourism programs.
20. The “Neighborhood Nannies” program will expand with vouchers of up to €500 per child.
21. The 15% tax on health insurance for children under 18 will be immediately abolished.
22. Free fertility screening for women aged 30 to 35, with simplified IVF coverage by EOPYY.
23. Unemployment benefits will be reformed to prevent them from encouraging undeclared work, focusing on those truly in need.
24. Fairer, more effective, and targeted social benefits: Guaranteed Minimum Income, housing allowance, and child allowance, aiming to reduce child poverty.
25. Permanent refund of the Special Consumption Tax on agricultural diesel, starting from 2025.
26. A flexible system for managing farmers’ and cooperatives’ non-performing loans, reducing interest and cancelling some debt based on their capacity.
27. A €600 million program to expand greenhouse cultivation nationwide.
28. An exchange and allocation plan for idle public lands owned by the Ministry of Agricultural Development, for investors to develop large-scale greenhouses with high-value export products.
29. The “My Home” II program, worth €2 billion from the Recovery Fund, will help over 15,000 young people or couples under 50 acquire their first home at half the commercial interest rate.
30. A €400 million program for loans of up to €20,000 with zero interest for the energy upgrading of thousands of old homes.
31. Three-year tax exemption for owners who rent out closed properties or convert short-term rentals into long-term leases.
32. A new, increased tax on platform-based contracts.
33. Ban on new short-term rentals in three central Athens districts for at least one year.
34. A 20% increase in the ENFIA discount for owners who insure homes worth up to €500,000 against natural disasters.
35. Larger properties will keep a 10% VAT discount if insured; otherwise, they will not be compensated by the state for damages after April 2025.
36. Businesses with a turnover over €500,000 must have insurance for natural disasters, or they will not be compensated.
37. Enhanced incentives for innovation, mergers, and acquisitions with tax deductions of up to 315% for research investments.
38. The minimum capital requirement for companies formed through mergers will be set at €100,000.
39. The Stamp Duty will be abolished on hundreds of transactions, from business loan interest to insurance deals and import credits.
40. “Golden Visas” will be granted for capital injections of at least €250,000 into startups.
41. A new National Investment Fund, with €300 million in capital, will provide incentives for high-value-added initiatives.
42. 12+1 regional development plans will be created, featuring many small and large projects in each municipality and mountain or island community.
43. 15 bureaucratic processes will be eliminated to reduce the administrative burden by 25%, particularly for exporting businesses.
44. A Cruise Passenger Tax will be imposed for disembarking at Greek ports, with higher rates in Santorini and Mykonos.
45. The Climate Resilience Fee will be increased from April to October for hotels, accommodations, and rental properties via platforms, with revenues returning to local communities to improve infrastructure.