Greece unemployment benefit reforms expected by 2027

Greece is considering significant reforms to its unemployment benefit system, potentially set for implementation in 2027. The proposed changes follow an evaluation of a pilot program currently being managed by DYPA.

A key aspect of the potential new model is a shift toward a front-loaded payment structure. Instead of a fixed amount, beneficiaries would receive higher payments during the initial months of unemployment, with amounts gradually decreasing over time. Under the pilot model, payments start at 70% of the legal minimum wage in the first quarter and decrease to 40% by the fourth quarter.

The reform also aims to link benefits more closely to an individual's earnings and years of social security contributions. This includes a variable component or 'bonus' for workers with at least four years of insurance, rewarding longer work histories.

If the current standard unemployment benefit is not replaced by the pilot model, it is expected to increase following the 2027 minimum wage adjustment, with estimated rises between 5.5% and 8.7%. However, the final structure and exact amounts for 2027 remain subject to official evaluation and announcement.