allowances

The strengthening of incomes has been one of the main issues for the government of ND, in the context of dealing with the consequences of punctuality, which affects households, although the first indications reflect the interventions (they will cost about 550 million euros in the state budget in 2025) as lower than actual needs. The economic staff of the government, under the Minister of National Economy and Finance Kostis Hatzidakis, specified some measures from those announced by Prime Minister Kyriakos Mitsotakis, in the context of the 88th TIF. On the forefront is the rise of pensions, the horizontal increase of the public sector payroll, so that the entry salary in the State does not fall short of the minimum wage in the private sector, the increase of some allowances.

It is worth noting that the financial staff left zero margin for new fiscal interventions and benefits even if the evolution of the budget this year is better than expected since, as explained by Deputy Minister Thanos Petralias, this year’s expenditure increase limit of 2.6% has already been met. He announced, however, that a supplementary budget will be submitted immediately for the new increase of the Public Investment Program after the imposition of a tax on the skyrocketing profits of the refineries, which will yield approximately 300 million euros. Of this 243 million euros will finance the emergency Christmas allowance for the vulnerable and the rest will be directed to the PDE.

With reference to the fiscal rules that will apply from 2025, Mr. Hatzidakis stated that the Commission’s initial direction was for an increase in net primary expenditure by 3% or approximately 3 billion euros. However, it is expected to expand to close to 3.5 billion euros with the relevant agreement being finalized at the end of the month and beginning of October.

Pensions

The increase is expected to move to 2%-2.5%, according to what was reported by the Minister of Finance, Kostis Hatzidakis. The increases will follow, as every year, the mathematical formula “(inflation + GDP) / 2”. The cost is close to 400 million euros, according to the government’s financial staff.

Personal difference allowance

Pensioners who will not receive an increase because they still have personal difference will be boosted before Christmas with the personal difference allowance of 100-200 euros. It concerns 670,000 who will receive: 200 euros for those who receive a pension of 701-1,100 euros. 150 euros for those who receive from 701-1,100 euros and 100 euros from 1,101-1,600 euros. The allowance will amount to 200 euros for pensions up to 700 euros, 150 euros for pensions from 701 to 1,100 euros and 100 euros for pensions from 1101 to 1600 euros. (Cost 100 million euros).

Entry level salary in the public sector

As the Deputy Minister of National Economy and Finance explained, there will be a link between the minimum wage in the private sector and the introductory wage in the public sector beginning on January 1, 2025, which concerns approximately 700,000 civil servants. The minimum wage is 830 euros and the introductory wage is 850 euro. The minimum is expected to reach 950 euros in 2027, according to Mr. Petralia, adding that the entry level will gradually reach there as well. The cost until 2027 is 500 million euros until then and more than 100 million euros for 2025. Today the entry fee in the public sector is 850 euros and the minimum is 830 euros but in the public sector the fees are paid for 12 months, which will continued in the private sector for 14 months.

In order not to fall short of the new minimum wage, proportional horizontal increases in the salary of civil servants will follow (as was done with the 70 euros in 2024). Thus, all civil servants will gradually receive a horizontal increase of 100 euros in total until 2027, so that the introductory salary will rise to 950 euros.

In the scenario of increasing the minimum wage by 40 euros per year until 2027 and in case the floor in 2025 is set at 870 euros, the salaries of civil servants will increase horizontally by 20 euros (gross) per month from 1 April 2025 with a net cost for the 8 months 72 million euros (gross cost 119 million euros), while for 2026 an increase of around 40 euros per month is expected and an additional 40 euros in 2027. Larger or smaller increases of the floor will proportionally increase or decrease the changes for the public payroll.

Night employment Enstolo

20% increase in compensation for night uniforms (police, fire brigade, coast guard, armed forces) from 1/1/2025. Hourly compensation will rise from 2.77 to 3.33 euros per hour. It is noted that night working hours vary by service (generally ranging from 10 to 64 hours). Indicatively, it is stated that for a police officer with 64 hours of night work, the said increase corresponds to 36 euros gross or 22 euros net per month. The fiscal cost is estimated at 25 million euros per year.

Doctors in barrens

Another measure is the incentive to attract doctors to problematic and barren areas. From September 2024, an increased incentive to attract and stay NHS doctors in problematic and barren areas of 200 to 600 euros per month depending on the specialty and the region is being established. Today it concerns approximately 3,300 NHS doctors, with the aim of increasing this number, and the annual budgetary cost amounts to approximately 16 million euros.

OPEKA child benefit

Beneficiaries of the OPEKA child benefit will receive an additional installment of child benefit. It concerns approximately 767,000 beneficiaries and the cost amounts to 70 million euros. It is recalled that the amount of the allowance amounts to 70 or 42 or 28 euros for each child for the first and second child per month, depending on the amount of income and to 140 or 84 or 56 from the third and for each subsequent child, per month .

Disability allowance of the e-EFKA

200 euro boost for e-EFKA disability allowance beneficiaries. These are approximately 37,000 beneficiaries of the non-institutional allowance and other disability allowances of the e-EFKA. The cost is 7 million euros.

OPECA disability allowance

A 200 euro boost for beneficiaries of the OPECA DISABLED benefit. It concerns approximately 185,000 people and the cost is estimated at 37 million.

Uninsured seniors

Uninsured elderly beneficiaries of the corresponding OPECA allowance (approximately 35,000) will receive an aid of 200 euros. The cost is estimated at 7 million euros.

Beneficiaries of a guaranteed minimum income

Beneficiaries of the minimum guaranteed income (about 205,000) will receive an additional 50% of the monthly allowance during the month of December. The cost is estimated at 22 million euros. It is recalled that today the amount of the allowance amounts to 216 euros per month for one-person households, for each additional adult in the household it is increased by 108 euros per month and for each additional minor member of the household by 54 euros per month. Therefore, a couple with 2 children who received an allowance of 432 euros, will receive an additional 216 euros of extraordinary allowance, i.e. a total of 648 euros.

Housing benefit

Increase of the student housing allowance for Regional Universities from 1,500 to 2,000 euros per year and 2,500 in case of cohabitation, from the current school year. It is clarified that the increase in the student housing allowance at the Regional Universities is a permanent aid measure – and not an emergency aid.

Achieving goals

There will also be an expansion of the goal achievement allowance, at a cost of 40 million euros, which concerns the State as a whole.

Source: ot.gr