ATHENS — Greece is preparing one of its largest recent income-support and tax-relief packages after Prime Minister Kyriakos Mitsotakis announced measures worth up to €3.5 billion through 2030, while ruling out an early national election.

The centre-right government is seeking to raise household incomes, reduce tax pressure and respond to persistent concerns over living costs. Mitsotakis said the next general election would be held in spring 2027, rejecting speculation that voters could be called to the polls earlier.

The announcement came as the government attempts to strengthen public support after years of economic recovery have failed to fully ease pressure on household purchasing power.

Major Tax Relief for Farmers and Families

One of the headline measures is a zero income-tax rate for professional farmers earning up to €20,000 a year.

The government also plans tax relief for families with three children. According to Mitsotakis’ announcement, eligible three-child families with annual income up to €20,000 will receive a zero-tax rate.

The package also increases benefits for larger families, with an additional €1,000 for each additional child beyond the third under the announced measures.

The government says the measures are intended to strengthen disposable income while addressing Greece’s demographic challenges.

Minimum Wage Set for Another Increase

Greece also plans another increase in the minimum wage.

Mitsotakis said the minimum salary is expected to rise above €950 in 2027, with a longer-term target of reaching €1,000 in January 2028.

The government says the increase will also affect public-sector pay scales and related allowances. Private-sector workers are additionally expected to benefit from another reduction in social-security contributions.

The measures are designed to raise take-home income while maintaining Greece’s broader employment and economic-growth strategy.

Support for Pensioners and Public Employees

The government has also announced direct financial support for pensioners and public-sector employees.

Pensioners are set to receive an annual €400 payment, while public employees will receive a permanent €500 benefit under the announced programme.

The package also includes measures affecting housing, energy costs and social support, making it broader than a conventional tax-cut programme.

Businesses to Receive Tax Relief

Greek businesses will also receive several forms of relief.

The government plans to reduce advance tax payments for self-employed workers and companies, while certain business fees will be eliminated or reduced depending on location.

Mitsotakis said the business tax reforms are intended to encourage investment and reduce operating costs, particularly for companies outside the Athens region.

At the same time, Greece plans to raise the tax rate on certain exceptionally high executive compensation from 5% to 15% when the relevant income exceeds €60,000.

The government has presented that change as an effort to make the tax system more equitable.

Greece’s Economic Recovery Provides Fiscal Room

The scale of the programme has been made possible by Greece’s improved fiscal position.

The country has moved significantly away from the severe financial instability experienced after the 2009 debt crisis. Its economy is currently expanding at roughly 2% annually, while the government expects a primary budget surplus of around 4%.

Those figures have given Athens greater room to provide tax relief without abandoning its commitment to fiscal discipline.

However, the government still faces a difficult political environment.

Greece continues to experience a cost-of-living squeeze, while public frustration has been amplified by concerns over purchasing power and allegations of government-related corruption. Recent polling has shown support for the ruling New Democracy party substantially below the level achieved in the previous general election.

No Snap Election

Despite the political pressure, Mitsotakis has ruled out an early election.

He said Greece’s next parliamentary election will take place in spring 2027, giving his government additional time to implement the newly announced economic measures and demonstrate their effect on households and businesses.

The prime minister also expressed confidence that his party could secure another term in office.

For the government, the strategy is clear: use stronger public finances to increase household incomes, reduce selected taxes and address economic concerns before voters return to the polls.

For Greek citizens, the effectiveness of the package will ultimately depend on whether higher wages and tax reductions translate into meaningful improvements in purchasing power.

The government now faces the challenge of delivering the promised measures while maintaining economic growth and fiscal stability — with the next national election already firmly on the political horizon.