Public sector employees will receive a total benefit worth one billion euros by 2026, according to announcements by Minister of National Economy and Finance Kyriakos Pierrakakis. These increases stem from the government’s overall economic strategy and permanent measures presented at the Thessaloniki International Fair.
How public sector pay increases are structured
During an interview on the Kontra 24 show, Kyriakos Pierrakakis presented a detailed breakdown of the one billion euros that will reach public sector employees’ accounts.
The total pay raise package for public sector employees includes:
• Salary improvements for the Armed Forces and Security Corps costing 240 million euros
• Impact from minimum wage increases affecting all public sector salaries, costing 360 million euros
• Tax rate reductions directly benefiting public employees, costing 400 million euros
Comparison with 13th salary and tax reform
The Finance Minister emphasized that implementing a 13th salary would cost 1.35 billion euros, while the government package provides one billion euros through a different approach. Kyriakos Pierrakakis highlighted that tax cuts broadly affect public employees, private workers, freelancers, pensioners and farmers. Government policy focuses on supporting disposable income through the largest tax reform ever implemented in the country. Changes to the tax system will take effect from New Year’s Day, providing permanent benefits.
What he said about PASOK’s program
Regarding the Swedish model of temporary VAT reduction on food, Mr. Pierrakakis clarified that Greek measures differ as they are permanent in nature. The government follows a strategy that removes problems and prioritizes those with the greatest need.
Concerning PASOK’s proposals for additional measures worth 4 billion euros, the minister noted that the total cost of opposition proposals reaches 5.76 billion euros, equivalent to two additional property taxes.
Finally, responding to potential new political developments, Kyriakos Pierrakakis emphasized the need for substantial political discourse beyond slogans, highlighting the responsibility for genuine political communication.
