2025 is recorded as one of the few years -even compared to the pre-memorandum period- during which economic policy moved exclusively towards benefits. In fact, if tax increases had not been imposed on the tourism sector, such as the resilience fee, charges on Airbnb-type accommodations and the cruise fee, the year would have gone down in history as one without any new tax burden.
During the year, the state budget allocated more than 2 billion euros for direct and indirect income support measures, affecting employees, pensioners, freelancers, farmers, tenants and property owners. A total of 30 permanent benefits and tax reliefs were established, which are not temporary in nature, but will be applied steadily in the coming years, including 2026.
To be able to finance these reliefs and benefits in 2025, the public sector saved revenue mainly from combating tax evasion (with estimates suggesting savings of 2.5-2.7 billion possibly for this year) as well as changes in the structure of the Armed Forces (approximately 19 million euros from 2025).
These interventions began to be implemented gradually for the first time from the beginning of the year, spread throughout its duration -until the last payments of the final days of December- and were scheduled in three “waves”:
a) measures that took effect from 1.1.2025 and were incorporated from the beginning into the current Budget voted at the end of 2024.
b) additional support measures that were implemented mid-year and were not provided for in the 2025 Budget. They were announced before Easter, when the surplus from curbing tax evasion was identified (with an initial estimate of the benefit for 2024 at 2.1 billion euros)
c) new interventions that were announced at the 2025 Thessaloniki International Fair.
The thirty permanent benefits for employees, pensioners, professionals, farmers, tenants and property owners
Specifically, the 30 benefits for households and businesses, which unfolded gradually during 2025 were as follows:
A. 15 interventions incorporated into the 2025 budget:
This includes measures that had been announced earlier in 2024, but their impact began to become visible from 2025.
1. Across-the-board salary increases in the public sector, so that the entry-level salary does not fall below the minimum wage of the private sector, with graduated increases and new salary scales: benefit of 215 million euros in 2025 for all civil servants.
The measure began to be implemented for the first time in April, but is permanent and recurring. Each year a new increase is added: throughout 2026 an additional 357 million euros will be given (on a twelve-month basis now) while in 2027 another 310 million euros.
Compared to 2024 (before the increase) public sector salaries in 2027 will have increased by 882 million euros, solely from this 2025 measure. While cumulatively in the three-year period 2025-2027 public sector workers will have received a total of 1.67 billion euros additionally, precisely because the 2025 increase is recurring and increases each year.
2. Reduction of social security contributions by 1 unit in 2025: benefit of 448 million euros annually shared by all workers and businesses that employ staff.
3. Abolition of the business license fee from 2025 for specific categories, with continuation of the 50% reduction for 2024: benefit of 125 million euros in 2025, increasing to 144-150 million euros from 2026-2027.
4. 20% reduction in property tax for homes insured against natural disasters, with taxable value up to 500,000 euros: benefit for owners of 21 million euros in 2025, expected to increase to 41-45 million in 2026-2027.
5. Reform of the target achievement incentive in the Public Sector: benefit of 20 million euros in 2025 (and 40 million annually from 2026 onwards)
6. Reform of the dangerous and unhealthy work allowance for local authorities: 37 million euros
7. Income tax exemption for vacant properties or properties in short-term rental, which will be converted to long-term rental: benefit of 10 million euros in 2025 -and extension in 2026 to 19 million euros
8. 20% increase in night shift compensation for uniformed personnel from January 2025: 25 million euros
9. Increase in student housing allowance for regional Universities (from 1,500 euros to 2,000 euros annually and to 2,500 euros in case of cohabitation): 15 million euros in 2025
10. Increase in salaries for military academy cadets: annual benefit of 14 million euros.
11. Abolition of fixed telephony fee (5%) for fiber optic connections (≥100 mbps): annual benefit of 24 million euros from 2025.
12. Exemption from insurance premium tax (15%) for health contracts for children up to 18 years old: annual benefit of 17 million euros.
13. Incentive (tax exemption) for voluntary company benefits to new parent employees: 6 million euros.
14. Abolition of stamp duty and reduction of digital fee in a series of transactions (building permits, loans, marriages, insurance contracts etc.): benefit of 32 million euros.
15. Business incentives for innovation, mergers and acquisitions: 41 million annually.
B. 2 “off-Budget” interventions that were institutionalized mid-year.
These concerned:
16. Return of one month’s rent annually: annual benefit of 230 million euros paid to nearly 1 million tenants, from November 2025 and every year thereafter.
17. Social support of 250 euros, from November 2025 and every November, to pensioners, uninsured elderly and people with disabilities: benefit of 360 million euros annually
C. 13 new interventions from the 2025 Thessaloniki International Fair
These are measures announced in September at the Fair and have their main fiscal impact from 2026 onwards, but began to become visible even before 2025 expired.
These are:
18. New income tax brackets with emphasis on families with children, young people and the middle class: although formally valid from 1.1.2026, public sector employees were already prepaid their January salary with an increase of up to 80 or even 150 euros net, depending on their age or number of children, due to reduced withholdings.
19. Pensions: a) non-offsetting of 50% of the annual pension increase with pensioners’ personal difference in 2026 (with the prospect of abolishing offsetting from 2027) and b) adjustment of Special Solidarity Contribution for Pensioners (SSC) withholdings: over half a million pensioners who had not received an annual increase for 15 years due to personal difference, received it for the first time in December. They had immediate benefit of 7 million euros within 2025, and multiple benefits throughout 2026 and every year thereafter, beyond the reduction in withholdings they also had in January pension prepayments, due to reduced tax rates from 1.1.2026.
20. Changes to the Armed Forces pay scale, effective retroactively from October 2025: benefit of 55 million euros for 2025 (to be given retroactively after the new pay scale is voted in Parliament) and an additional 162 million euros for the entire 2026.
21. Reform of Security Forces pay scale: 35 million euros within 2025 (and 127 million euros annually from 2026 onwards).
22. Risk allowance for uniformed personnel of 100 euros monthly from June 2025 onwards (111 million euros in 2025 and 222 million euros in 2026 and beyond).
23. Allowance for correctional staff (3 million euros in 2026 and 6 million euros annually from 2026).
24. Special increases in the public sector: non-offsetting of civil servants’ personal difference (12 million euros in 2025 increasing to 17 million euros in 2026 and 22 million euros in 2027), establishment of library allowance for faculty members and research staff, as recognition of their academic work (3 million euros in 2025 and 6 million euros annually from 2026), increase for graduates of five-year study cycles etc.
25. Extension of the measure to increase the pharmaceutical spending limit: 100 million annually for medicines from 2025 onwards
26. Increase in health spending limit for diagnostics and private clinics: 35 million euros for examinations from 2025 onwards
27. Provision of high-cost medicines by the National Health Insurance Organization through private pharmacies (12 million euros annually),
28. Extension of pharmaceutical spending exemption to low-pension recipients: 23 million euros from 2025
29. Abolition of age restrictions for granting deafness – hearing impairment allowance: benefit of 4 million euros annually
30. Extension of validity of income tax reduction for building upgrade expenses for 2025 and 2026 (benefit of 5 million euros annually) and extension of VAT exemption for new buildings (18 million euros annually for 2026 as well).
With these thirty measures of 2025, as well as the increase in the Public Investment Program by 500 million euros from the 2024 surplus, this year more than 2.5 billion euros returned to the market and society, as salary increases, tax reductions, targeted benefits, as well as resilience projects, infrastructure and civil protection that local communities need. And they constitute the starting point for other new measures and benefits, totaling 1.7 billion, which have been budgeted and incorporated into the state budget voted days ago, to be implemented from New Year’s Day and throughout the new year 2026.
