allowances

The Minister of National Economy and Finance Kostis Hatzidakis and Deputy Ministers Christos Dimas and Thanos Petralias proceeded to elaborate on the announcements made by Prime Minister Kyriakos Mitsotakis from the Thessaloniki International Fair on taxes, wages and pensions.

The Minister of National Economy and Finance Mr. Kostis Hatzidakis and the Deputy Ministers Mr. Christos Dimas and Thanos Petralias advanced the specialization of the measures announced by the Prime Minister at the TIF.

The new measures include permanent wage increases in the public and private sectors, targeted increases in benefits, extraordinary pension benefits, relief for freelancers and many other interventions.

Mr. Hatzidakis referred to 12 new salary increases and 12 new tax reductions announced by Mr. Mitsotakis at the TIF.

11:10 For his part, the Deputy Minister of Finance, Christos Dimas, stated that the new reduction of insurance contributions by 1 unit, will be by 0.5% from employee contributions and the remaining 0.5% from employer contributions in the health sector.

As a second important initiative, he mentioned the abolition of the fee for self-employed professionals.

• He referred to the permanence of the return of the EFFK to agricultural oil.
• Regarding the exemption from rent tax for 3 years, for owners who rent closed properties or if they convert a short-term lease into a long-term one, he said it applies to apartments up to 120 sq.m.

10:50 He also referred to the 20% increases in ensigns, with a monthly benefit of 22 euros net.

For the on-call pay of the NHS doctors, which will be taxed independently at a rate of 22%, he spoke of a monthly benefit of 100 to 210 euros, while he also referred to the incentives to attract doctors to barren areas.

10:45 The Deputy Minister of Finance Thanos Petralias, detailing the measures, noted that a new increase in the minimum wage is expected in April. He did not fail to mention that by April 2027 it will rise to 950 euros.

For the horizontal increase of salaries in the State, he said that they will follow the increase of the minimum wage. The increase will concern all salary scales. The breakdown per year noted that it depends on increases in the minimum wage.

10:38 12 tax reductions are also coming, as underlined by Mr. Hatzidakis

With regard to tax reductions, he referred to the following measures:

• 1% reduction in insurance contributions.
• Abolition of the pretense fee for freelancers.
• Permanentization of the return of the EFK to agricultural oil.
• Tax exemption for vacant properties that are rented out.
• Exemption from VAT for new constructions – extension also in 2025.
• Removal of the landline fee for fiber optic connections above 100 Mbps.
• Exemption from insurance premium tax for children up to 18 years old.
• Tax relief for business expenses for new parents.
• Reduction of ENFIA for residences insured against natural disasters.
• Independent on-call taxation for doctors.
• Incentives for corporate mergers.
• Reduction of stamp duties

10:36 Mr. Hatzidakis spoke about 12 salary increases:

• New pension increase from 1/1/2025
• Emergency financial aid of 100 – 200 euros for pensioners with a personal difference
• Horizontal public sector wage increase, so that the introductory one does not fall short of the minimum wage.
• Expansion of the target achievement allowance
• Increase in student housing allowance for regional universities
• Increase by 20% the compensation of the night attendants
• Incentive to attract doctors to troubled barren areas
• An additional installment to OPECA child benefit beneficiaries
• 200 euro boost for EFKA disability allowance beneficiaries
• A 200 euro boost for beneficiaries of the OPECA DISABLED allowance
• 200 euro subsidy for uninsured seniors
• Additional 50% of the monthly allowance to beneficiaries of the Minimum Guaranteed Income

10:33 The increase in net primary costs without the new measures amounts to 2.8 billion euros. The total increase, however, may rise to 3.5 billion euros (including the new measures announced by Prime Minister Kyriakos Mitsotakis), as the government has reason to believe that something like this will be agreed with the Commission in the following days, noted Mr. Hatzidakis.

10:27 The Minister of Economy did not fail to mention the impressive improvement and acceleration of extrajudicial mechanisms and the new image on the beaches with the MyCoast application.

10:26 Mr. Hatzidakis during his introductory statement noted that “we consistently continue to exceed the fiscal targets, we have an increase in funds for public investments as well as an increase in tax revenues, without an increase in taxes”.

10:22 “We are among the European Union countries with the fastest speeds. We have the largest percentage increases in investments”, emphasized the Minister of Economy and Finance.

10:20 “The government seeks to prioritize certain issues such as demographics, housing, the issue of climate change, but at the same time it faces requests from some social groups. Everything is moving forward based on budgetary possibilities.”

Source OT