Greece budget draft proposes wage and pension increases for 2027

The Greek draft state budget outlines significant changes to wages and pensions scheduled for 2027. A primary focus is the gradual increase of the minimum wage, which aims to reach 1,000 euros by 2028 (or 1,300 euros including seniority bonuses). The first scheduled increase is expected on April 1, 2027, potentially raising the minimum to between 960 and 970 euros. This adjustment is expected to impact related benefits, such as unemployment and maternity allowances.

Additionally, the budget proposes a 0.5 percentage point reduction in social security contributions for private-sector employees, effective April 1, 2027. This measure, funded by the state budget, aims to lower payroll costs.

Regarding pensions, the draft budget projects a 2.8% increase for all main pensions starting January 1, 2027. A critical policy shift involves the treatment of the 'personal difference' (prosopiki diaphora); the proposed increase will no longer be offset by this difference, allowing more retirees to receive a tangible increase in monthly income. The total fiscal cost for the pension increase is estimated at 807 million euros.