New measures to benefit mainly civil servants, pensioners and the weakest
Government spending excess at 3.5 billion euros for next year
State employees, including special wage earners, as well as pensioners will benefit more from the salary increase measures announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair on Saturday, while private sector employees will see small increases in their salaries from the reduction in social security contributions.
The measures, weighed against the new Stability Pact, have a total cost of 1.45 billion euros for 2025, of which €900 million is tax and social security reductions and €550 million is income increases. In addition, €243 million will be given this year at Christmas in order to help the weakest.
In total, together with increases in fixed government expenditure (€1 billion), new pensions (€600 million) and equipment (€800 million) in 2025, next year’s spending will increase by €3.8 billion, which is €800 million higher than the €3 billion proposed by the European Commission in June.
However, around €300 million will be covered by additional taxes such as cruise and climate resilience taxes, so the net increase in primary spending will be around €3.5 billion, an amount on which it is expected that there will be an agreement with the Commission. The 2024 measures will be partly financed by the €300 million extraordinary levy on refinery profits.
From the measures for salary increases, according to the presentation on Monday by National Economy and Finance Minister Kostis Hatzidakis, the following categories will mainly benefit: Pensioners will see increases of 2.2-2.5%, costing €400 million; civil servants will get a raise in April with the goal of bringing their starting salary up to the private sector minimum wage, which will be agreed then. Furthermore, the compensation of night shift workers will increase by 20%, from €2.77 to €3.33 per hour.
Incentives will be given to doctors to attract them to problematic and remote areas, €200 to €600 per month. A series of vulnerable social groups, 1.9 million households, will be strengthened within 2023 with €243 million.
