Workers and pensioners in Greece are expected to receive higher pay and financial support in 2027 under measures outlined in the government’s draft budget, including increases in wages and pensions, a new Christmas bonus for public employees and an annual €400 payment for eligible pensioners.
Wages are projected to rise by 3.9% in nominal terms, while pensions are expected to increase by 2.8%. The minimum monthly wage is projected to reach approximately €960 in April 2027, with a corresponding increase in the entry-level salary for public-sector employees. A 0.5-percentage-point reduction in employee social security contributions is also expected to raise take-home pay.
However, wage increases are not expected to benefit all workers equally. Data from Greece’s ERGANI employment information system show that around one in three salaried employees in the private sector still earns less than €1,000 a month.
Wages to rise, but inflation will limit gains
According to the draft budget, average nominal earnings per employee are projected to increase by 3.9% in 2027, compared with 3.7% in 2026. Total compensation for dependent employment is expected to rise by 4.6%, up from 4.4% this year.
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In real terms, however, the increase in nominal earnings per employee is forecast to be limited to 1.4% in 2027, as wage growth is accompanied by a slowdown in inflation.
ERGANI data also highlight the uneven distribution of salaries in the private sector. While approximately 900,000 employees earn more than €1,500 a month, around 250,000 receive between €2,000 and €3,000.
Four potential benefits for private-sector workers
Private-sector employees are expected to benefit from several changes during 2027.
The first concerns seniority-based pay increases, known in Greece as triennia. These provide additional pay for each three-year period of recognized work experience. Following the lifting of a freeze on these increases on Jan. 1, 2024, thousands of workers are expected to qualify for their first additional three-year increment, which provides a 10% increase for most private-sector employees covered by the measure.
The second expected increase is the adjustment of the minimum wage in April 2027, when it is projected to approach €960 a month.
At the same time, employee social security contributions are expected to fall by 0.5 percentage points. The reduction will come entirely from contributions paid by employees, resulting in an equivalent increase in their pay.
A further increase in the minimum wage is expected in January 2028, when the monthly rate is projected to exceed €1,000.
Public-sector employees to receive €500 Christmas bonus
A new Christmas bonus of €500 is expected to be introduced for public-sector employees at the end of 2027. The payment is projected to cover approximately 720,000 workers.
Public employees are also expected to benefit from increases in the minimum wage, which will feed through to the entry-level salary scale in the public sector. The resulting increase in entry-level pay is expected to reach €80 by January 2028.
Pensioners to receive 2.8% increase
Pensions are projected to rise by 2.8% in 2027, at an estimated budgetary cost of €807 million.
From Jan. 1, 2027, the increase is expected to apply across the pensioner population without being offset by the so-called personal difference. This is a mechanism used in Greece’s pension system to account for differences between older pension amounts and those calculated under subsequent reforms.
The draft budget also provides for the removal of a 50% reduction that currently affects certain beneficiaries receiving survivor’s pensions after the first three years. The measure is expected to cost €48 million.
€400 annual payment for eligible pensioners
In November 2027, pensioners over the age of 65 are expected to receive an annual financial payment of €400 net, at an estimated budgetary cost of €879 million.
The same payment is expected to be available to people over 60 who receive only a survivor’s pension, people with disabilities regardless of age, and uninsured older people who qualify for the relevant support.
The measures outlined in the draft budget set out the expected changes to wages, pensions and financial assistance in 2027, although the figures and provisions remain projections at this stage.