Measures for Families, Pensioners, Unemployed Detailed in Joint Ministerial Presser

A series of measures to support low-income families, unemployment benefits in Greece, and pensions, announced by Greek PM Kyriakos during his TIF address last week were detailed on Thursday.

In a joint Ministerial press conference on Thursday morning coordinated by government spokesperson Pavlos Marinakis, the Ministers of Social Cohesion & Family, Employment, and Education & Religious Affairs, specified a series of measures to support low-income families, unemployment benefits in Greece, and pensions, announced by Greek PM Kyriakos during his TIF address last week.

The detailed measures for the support to families include, among other things:

  • A couple with two children and no income will now be eligible for a €535 allowance per month, compared to €432 they received before.
  • Birth allowance: Set at €2,000 in 2020 – Increased as of 1/1/2023 to €2,400 to €3,500
  • Increase of maternity allowance from 4 to 9 months at the level of the minimum wage.
  • Extension of maternity protection from six to nine months – applicable to self-employed women and female farmers
  • Option to transfer maternity leave in the private sector from the mother to the father
  • Increase of the tax-free threshold by €1,000 for families with children starting from 1/1/2024
  • Reduction of VAT rate on baby and children’s products to 13% – Price cap on infant formula profits
  • Abolition of tax on parental gifts and donations for first-degree relatives
  • Expansion of the school meals program from 153,000 to 217,000 students daily
  • Increase in childcare vouchers for nurseries, Creative Activity Centers (KDAP), and KDAP for people with disabilities (KDAPamea)

Regarding unemployment benefits in Greece, a new increase in the minimum wage is planned for April 2025. The government’s goal is for the minimum wage to reach €950 and the average wage to reach €1,500 by 2027.

In detail, the measures include:

  • The new reduction in social security contributions
  • Reform of the unemployment benefit
  • Incentives for businesses to support young workers

For pensioners, the measures include:

  • A general increase in pensions
  • Special assistance for pensioners affected by the “personal difference” rule.
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