Civil servants, private sector employees, retirees, large families, people with disabilities, young couples without a first home, and newborn children were all placed at the center of new permanent benefit measures announced by Prime Minister Kyriakos Mitsotakis from the podium of the 90th Thessaloniki International Fair (TIF).
Specifically, Kyriakos Mitsotakis announced a permanent €500 Christmas bonus for all civil servants (from 2027), a permanent €400 bonus for all pensioners (in November 2026), and a minimum wage increase to above €950 in April 2027 and to €1,000 in January 2028. The Prime Minister also announced inflation-linked increases to disability benefits from 2027, a state-matched savings account (“piggy bank”) for children born from January 1, 2026 onward, a €1,000 per additional child increase in birth grants for large families from January 1, 2026, and a new €2 billion “My Home III” housing program set to launch in 2027.
1. Civil servants: Permanent €500 Christmas bonus for all in 2027
Starting December 2027, all civil servants — a total of 720,000 employees — will receive a permanent Christmas bonus of €500 gross. According to Prime Minister Mitsotakis, this bonus “will count toward pensionable earnings.” As analysts at powergame.gr note, this means it will be subject to primary insurance contributions (20%), supplementary insurance (6%), and lump-sum pension fund contributions (4%). If health (6.1%) and unemployment (2%) deductions also apply, the total withholding rate could reach 38.1%. Of this, 18.1% represents employee contributions, meaning the net amount civil servants will actually receive is expected to be approximately €410.
In addition, Mitsotakis announced that all civil servants will receive a flat monthly raise of €80 gross by January 2028, tied to the minimum wage surpassing €950 in April 2027 and reaching €1,000 from January 1, 2028.
Examples
“Combined with annual raises, a 40-year-old civil servant with two children and a net salary of €1,450 will see a net increase of €562 in 2027 and an additional €402 in 2028 — a total of €964,” Mitsotakis stated.
He added: “A younger civil servant earning €1,123 net will benefit by €609 net in 2027 and an additional €424 in 2028 — that’s an extra income of €1,033, almost the equivalent of an entire additional monthly salary.”
2. Pensioners: Permanent €400 bonus for all retirees over 65 in November 2026
Mitsotakis announced an increase to the permanent benefit for pensioners over 65 — raising it from €300 to €400 — while effectively eliminating income and asset-based eligibility criteria. All 2.6 million retirees will receive the payment this coming November. Notably, the €400 will be paid net, with no deductions whatsoever. As the Prime Minister noted, the amount “roughly corresponds to an additional national pension” (currently €448). He also reminded audiences that, from January 1, 2027, the personal difference adjustment for legacy pensioners will be fully abolished — a measure already enshrined in law.
This means all pensioners will receive an increase in their primary pensions in January 2027 — projected at 2.6%, based on current official forecasts for inflation and GDP growth — with the higher amounts visible in their accounts during the Christmas holiday period. Mitsotakis stated: “At the end of December 2026, the annual increased January pensions will be paid for the first time, calculated on the basis of inflation and GDP — and I remind you: without the personal difference offset being applied.” He also noted that the reduction of widows’ pensions, legislated under the Tsipras-Katrougalos law, has already been abolished.
Examples
“With the new arrangements and increases, a female retiree with a monthly net income of €823 will receive an additional €208 from the annual pension increase, plus €400 in support payments — a total net gain of €608.
A retiree with an income of €1,086 will gain €684. A higher-pension retiree receiving €1,716 per month will see a net benefit of €849. Here too, we are talking about the equivalent of almost one additional monthly pension,” Mitsotakis noted.
3. Private sector employees: Minimum wage to exceed €950 in April 2027, reaching €1,000 in January 2028
Mitsotakis also announced that the minimum wage will exceed €950 on April 1, 2027, going beyond the government’s previous commitment of exactly €950. However, he did not specify the precise figure the minimum wage will reach in 2027. He did confirm it will reach €1,000 by January 1, 2028. Taking into account seniority increments, the effective minimum wage could reach as high as €1,300. He also announced that the 0.5% reduction in employee social security contributions will take effect on April 1, 2027, rather than January 1, 2027, as previously set out in the Medium-Term Fiscal Plan.
Examples
According to examples provided by Mitsotakis, a young employee earning the minimum wage will benefit by €414 in 2027 and €1,040 in 2028.
An employee with three seniority increments earning a net salary of €959 will see an increase of €1,055 by 2028.
4. People with disabilities: Disability benefits to rise in line with inflation from January 2027
Mitsotakis also announced the “permanent indexation of all disability benefits to inflation,” effective January 1, 2027. This means that from next year onward, disability benefits will increase annually by the previous year’s inflation rate. If inflation reaches 3.2% this year, as recently projected by the Ministry of Finance, disability benefits will rise by 3.2% in 2027. According to the Prime Minister, this measure affects 218,000 citizens, with an average annual benefit of €220.
5. Large families: Birth grant increased by €1,000 per additional child, retroactive to January 2026
The Prime Minister announced an increase of €1,000 per additional child in birth grants for large families. The measure applies to births after January 2026. As a result, the birth grant for a fourth child in a large family will rise from €3,500 to €4,500. For a fifth child, the grant will increase from €3,500 to €5,500, and so on for each additional child.
6. Newborns: State-matched savings account (“piggy bank”) launching January 2027
The Prime Minister announced that from January 1, 2027, a “Piggy Bank for the Next Generation” scheme will be introduced, covering all children born from January 1, 2026 onward. The state will match every euro deposited by parents, up to a maximum of €1,200 per year. This cap will increase by 10% every five years. By the time the child turns 18, the fund could exceed €60,000, according to Mitsotakis.
Example
The Prime Minister explained: “For the first time, we are establishing an account that parents can open within the first two years after each child’s birth. The state will match every deposit made by the parent, up to €1,200. If a parent puts in €100, the state puts in €100. We are creating a locked ‘Piggy Bank for the Next Generation.’
What does this mean in practice? It means that a child who has already been born or will be born — and I want to emphasize that this capital will remain locked until they turn 18 — if their parents choose to save €100 per month, will find themselves at age 18 with more than €60,000 as a foundation for starting their adult life.”
7. Couples without a first home: “My Home III” — a €2 billion housing program launching January 2027
Finally, from the podium of the 90th Thessaloniki International Fair, the Prime Minister announced a new program to support first-home ownership. The “My Home 3” program, worth €2 billion, will be administered through the Hellenic Development Bank. According to Mitsotakis, the government’s goal is “to reach 40,000 young people and young couples who will acquire their first home through this process.”
Source: powergame.gr
