Millions of citizens and businesses will start receiving payments from the public treasury over the next two weeks through the end of the year to benefit from economic support measures worth 800 million euros that the government has committed to distribute to strengthen the incomes of vulnerable households, families with children, pensioners, employees and tenants in the face of the crisis.
Government benefits: Support measures for citizens and businesses
Along with the 800 million euros that will begin to be distributed in the coming weeks, there is also the “crisis reserve” of 200 million euros for the coming months, a small part of which has already been utilized with the extension of fuel subsidies at the pump for June, bringing the total firepower against inflation to 1 billion euros before the year ends, in case a new Fuel Pass or even Market Pass for basic product purchases is needed.
* Emergency child benefit of 150 euros at the end of June
* 300 euros (up from 250) enhancement for pensioners
* Two “gift” rent payments for public servants
* Interventions in judges’ and public employees’ salaries
* Exemption from excise tax on agricultural diesel
* Inclusion in extrajudicial settlement from 5,000 euros
* Greater ability to save primary residence
* Incentives for companies for “Build-Rent” programs
The long-awaited “Mitsotakis package” of 800 million euros was put to public consultation for 15 days yesterday, having been incorporated into the equally significant bill to combat illegal gambling.
It provides for a series of different interventions in key sectors that affect citizens’ daily lives, from living needs and housing to debt settlement.
Among the most significant initiatives are the emergency allowance of 150 euros for each child that will be given automatically to families by the end of June, the increase in the amount that pensioners receive each November from 250 to 300 euros which now also includes those receiving widow’s pensions from age 60 (instead of 65), the return of two annual rent payments to public servants, interventions for cheap fuel at the pump for farmers, as well as the cheaper GAIA electricity tariff for new farmers, new possibilities to avoid foreclosures of the first home within the framework of the extrajudicial mechanism, and overall private debt management, as well as initiatives aimed at constructing new housing by companies with tax exemptions to increase supply and reduce market prices.
The enhancements
Regarding enhancements for families, pensioners and vulnerable groups:
A) An emergency financial enhancement for families with children is established, amounting to 150 euros for each dependent child, with expanded income criteria. The 150 euro enhancement applies to 2026 and will be given to parents who are tax residents of Greece, based on data from tax declarations for 2024. Beneficiaries are married couples or civil union partners with family income up to 40,000 euros, a limit that increases by 5,000 euros for each additional dependent child beyond the first. For single-parent families, the income limit is set at 39,000 euros and also increases by 5,000 euros for each additional dependent child beyond the first. Payment will be made by 30.06.2026 to the bank account declared to AADE, without requiring an application from the beneficiary, and payment will be based on the 2024 tax declaration as it will have been formed by the last working day of May 2026.
* 800 million euros will begin to be distributed immediately
* 200 million euros for new “Fuel Pass” or “Market Pass”
* 150 euros extra for each child by month’s end
* 300 euros increase in the amount pensioners receive each November
* 2 rent refunds to teachers, doctors and nurses
B) The enhancement paid each November to pensioners and vulnerable social groups increases to 300 euros, from 250 euros today, while income criteria are simultaneously expanded, resulting in an increase in the number of beneficiaries. For the annual enhancement of 300 euros, income limits rise to 25,000 euros for unmarried persons and to 35,000 euros for married persons or civil union partners. At the same time, property limits also increase, as the value of real estate must not exceed 300,000 euros for unmarried persons and 400,000 euros for married persons or civil union partners. The same enhancement covers those who have completed their 60th year of age by December 31 of the previous year and receive a pension due to death. For other pensioners, the age limit of 65 years remains. Beneficiaries also include disability pensioners, uninsured elderly, beneficiaries of social solidarity allowances for uninsured elderly, people with disabilities receiving welfare benefits in cash from OPEKA, as well as other special categories of disability allowances paid by e-EFKA or the State.
Housing interventions
In the area of housing interventions:
A) The most immediate measure is the return of one rent payment, for more beneficiaries due to increased criteria covering 85% of tenants. The rent refund can reach up to 800 euros for the main residence, while an increase of 50 euros for each dependent child is provided. Beneficiaries of the enhancement granted for renting a main residence are those who cumulatively have: annual total family income up to 25,000 euros for unmarried persons, up to 35,000 euros for married persons or civil union partners, increased by 5,000 euros for each dependent child and up to 39,000 euros for single-parent families with dependent children, increased by 5,000 euros for each additional dependent child beyond the first, as well as total real estate value of 120,000 euros for unmarried persons, increased by 20,000 euros for the spouse and each additional dependent child.
B) A refund of two rent payments is also provided to teachers, doctors and nurses serving in the Greek periphery, without restriction regarding income criteria.
C) For short-term rentals, the issuance of new licenses for properties located in the 1st Municipal Community of the Municipality of Thessaloniki is prohibited, as already happens with three districts in Athens.
D) A new “Build-Rent” program is established which provides tax incentives for private investments in the housing sector to be rented at low rent for ten years and increase housing supply.
How farmers will be supported
Support for farmers with cheap fuel – energy
The multi-bill simultaneously brings measures to address the energy crisis and support farmers. Specifically:
A) The new procedure for exemption from excise tax on agricultural diesel is established with direct discount at the pump through a special digital platform of AADE.
B) The extension of the special GAIA Tariff application to new farmers is provided, so they can benefit from lower electricity costs.
Salary increases in public sector, judiciary and archbishops
Changes to the extrajudicial mechanism and the possibility of settlement in up to 72 installments for debts that had not been settled by the end of 2023
The bill put to public consultation yesterday includes interventions in the salaries of special categories of personnel, with changes in pay scales, personal differences and compensation. Salary evolution is provided for judicial officials who are not promoted due to lack of vacant positions, with increases that depend on rank, years of service and the basic salary difference between ranks, while in some cases judgment by the competent Supreme Judicial Council is required.
For permanent former Indefinite Term Private Law employees, employees who maintain the insurance regime of the former IKA and continue to work after applying for retirement, the pay scale they had when submitting the application is maintained, without seeking any differences that were paid. The personal difference regulation is extended to personnel appointed or transferred from 1.4.2023 to specific bodies, independent Authorities and other organizations, with a maximum amount of 300 euros monthly.
For PE Documentation and Judicial Work Support judicial employees, MK 8 is set as the introductory scale and their prior service is fully recognized. At the same time, the salary regime of the Prime Minister’s Office is unified and a special regulation is established for the staff of the Presidency of the Republic.
The remuneration of the Archbishops of the Church of Greece is also redefined: the Archbishop, Metropolitans and titular Metropolitans receive 90% of the maximum remuneration limit, while titular and assistant Bishops receive 70%, without other benefits. Finally, special compensations are provided for air traffic controllers, including for permanent loss of specialty and death, with the prerequisite for the first being 25 years of service and completion of the 55th year of age.
The increases are linked to rank, time of service and the basic salary difference between ranks, while in special cases judgment from the competent Supreme Judicial Council is also required. For judicial employees of the PE Documentation and Judicial Work Support Branch, the introductory pay scale is set at MK 8, while the service time already served in the branch is counted in full for their salary evolution.
At the same time, the salary regime of the Prime Minister’s Office staff is unified, while for the Presidency of the Republic a special regulation is provided for all types of personnel serving there, with exceptions to the existing framework.
The bill includes new provisions that facilitate debtors to make favorable settlement arrangements, aimed at reducing private debt. One of the most basic changes is that the minimum limit of debts that can be put into settlement is halved (to 5,000 from 10,000 euros).
In the same framework of private debt interventions, changes in the settlement of older debts are provided, as well as protection measures for the first home. In this context, for the first time the possibility of repayment and saving the main residence through liquidation of other properties within the extrajudicial mechanism is provided.
At the same time, the possibility of settlement in up to 72 installments is established for debts that had not been settled by the end of 2023. In the same framework, the possibility of lifting bank account seizure is provided, provided the debtor pays 25% of his debt and settles the remaining certified debts.
Benefits for military, civilians and terrorism victims
Significant increases in pensions for specific special categories in the public sector are provided by the new bill of the Ministry of National Economy and Finance, redefining their calculation method. According to the regulations, beneficiaries’ remuneration will be set at 80% of the corresponding pensionable remuneration received by active employees and officials.
The changes concern groups of insured who had been excluded from the unified system of the Katrougalos law and had retained the previous public sector pension framework. At the same time, it is provided that the increases will also apply to already retired members of the same categories, with retroactive application for those who left after January 1, 2017.
The scope of application includes public officials and employees, civilians and military who suffered complete work incapacity due to serious incidents, such as terrorist acts, attacks or high-risk events while performing their duties.
Beneficiaries are considered both salaried and unsalaried officials as well as elected officials or executives of public administration and the broader public sector, including employees in organizations and banks that fall under the relevant regime.
As a criterion for complete incapacity, a disability percentage of at least 67% is set, which is certified by the competent health committees.
For civilian employees, the pension is calculated based on the pay grade and evolution they would have had under normal conditions, taking into account 35 years of service and corresponding increases. Similarly, for Armed Forces personnel, specific limits of grade evolution are provided, while for soldiers a special provision is established so that the amount does not fall short of that of war disabled with equivalent disability percentage.
Published in the newspaper “Apogevmatini”.
