Greece announces wage hikes and expanded social benefits

Greece is implementing several measures to increase disposable income for workers and pensioners. Starting April 2027, private sector social security contributions will decrease by 0.5 percentage points. This reduction, which will be covered by the state budget through increased subsidies to DYPA, is designed to benefit employees directly. Combined with scheduled minimum wage increases—rising by 40 euros in April 2027 and another 40 euros in January 2028—low-income earners are expected to see significant net gains.

In the pension sector, a new 400-euro monthly supplement will be available starting November. The government has removed previous income and asset-based restrictions, meaning the benefit will now apply to approximately 2.2 million pensioners and disability allowance recipients who meet the age criteria (65 years old, or 60 for certain retirees).

Additionally, the government has announced an increase in the heating allowance. Approximately 780,000 households may receive up to an extra 100 euros, with total allowances potentially reaching 1,200 euros. This measure will apply to heating costs involving heating oil, natural gas, and LPG, starting from the 2027-2028 season.