The year 2026 is expected to be a milestone for employee salaries in Greece. Thousands of workers in both public and private sectors will see significant increases in their income, with many earning up to two additional salaries annually. The tax relief measures, benefit increases, restoration of seniority bonuses, collective agreements and new salary scales create a favorable landscape for workers. Particularly benefited will be young people up to 30 years old, families with children, and middle to higher-income earners.
Read: Ministry of Labor: The “map” of payments from e-EFKA and DYPA until January 9
Tax relief measures that increase net salaries
The reduction of tax rates by two percentage points for incomes between €10,000 and €40,000 represents the most significant change. Additionally, a new 39% tax bracket is introduced for incomes between €40,000 and €60,000. Workers with €20,000 income will now pay 20% tax instead of 22%, saving €200 annually. Those with €40,000 annual income will gain €600, while employees earning €50,000 will see a benefit of €1,100 per year thanks to the tax bracket changes.
Special incentives for young workers up to 30 years old
Young workers represent the category that gains up to two salaries in 2026 thanks to special tax arrangements. For young people up to 25 years old with €15,000 income, the annual benefit amounts to €1,283. With €20,000 taxable income, the tax reduction reaches €2,483 annually. Impressive is the case of a young person with €25,000 income, where the monthly salary increases by €229, from €1,500 to €1,729 net. For the 26-30 age group, benefits range from €650 for €15,000 income to €1,400 for €25,000 income.
Families with children: The big winners
The new tax-free thresholds particularly favor families with children. The tax-free allowance for one child remains at €10,000, for two children it increases to €11,375, for three children it reaches €14,364, while for four children it skyrockets to €27,100. A private sector employee with four children and €30,000 income will have an annual increase of €4,100 from tax reduction. With €40,000 income the benefit rises to €4,300, while with €50,000 it reaches €4,800 annually. A parent with three children earning €25,000 will save €1,700, while a family with four children and the same income will gain €3,180.
Minimum wage and benefit increases
The minimum wage is expected to increase by €40 to €50 monthly, reaching €920 to €930 in both private and public sectors. There’s a possibility the increase will be distributed in two phases, with €35 in 2026 and the remaining €35 in 2027. In the public sector, the increase will apply horizontally to all basic salaries, regardless of grade and education category. The minimum wage increase directly affects dozens of benefits, such as maternity allowance, parental leave, unemployment benefits, construction workers’ benefits, seasonal workers’ allowances and many others.
Seniority bonuses: Return of an old worker demand
Linking salaries to seniority bonuses represents a significant development for the private sector. Workers with one to three years of seniority will see increases from 10% to 30%. Specifically, the first three-year period brings a 10% increase, the second 20% and the third 30%. Currently, seniority bonuses are only received by those who had completed one to three seniority periods by February 2012, making their restoration particularly important for thousands of employees.
Collective agreements and sectoral regulations
Following the agreement between government and social partners, the restoration of sectoral collective agreements is proceeding. This development is expected to bring significant salary increases and sectoral minimum wages, further strengthening the incomes of workers who gain up to two salaries in 2026 from all these measures combined.
Productivity bonuses in the public sector
Within the first half of 2026, a productivity bonus will be implemented in the public sector, equivalent to an additional salary. It will affect 25,000 permanent employees who achieve specific targets. Law 4940/2022 introduced the incentive and reward system for the first time, with bonus payments for 2025 made in early 2026. Local government employees in municipal financial services are also eligible. The amount ranges from €1,250 to €2,000, corresponding to 15% of annual salary.
Salary scale reform for security forces
The salary scale reform brings significant increases for police, coast guard and firefighters. Officers will see increases of €276 monthly, non-commissioned officers €128 and lower ranks €103 per month. In the police force, high ranks gain €236, while special guards receive €63. Tax relief measures further strengthen incomes, with low-wage earners gaining on average up to €50 monthly, middle incomes up to €100 and senior positions up to €150 per month.
