Mitsotakis announces wage hikes, property tax discount, youth subsidy
Prime Minister Kyriakos Mitsotakis announced on Sunday three economic policies targeting the youth, civil servants and homeowners insuring their homes against natural disasters.
Mitsotakis, campaigning for re-election, debated economic issues with citizens at the Skaramangas Shipyards west of Athens.
Mitsotakis promised to introduce a so-called “Youth Pass” for everyone turning 18; this would be an annual subsidy of €150 per individual for two years, covering expenses for transport, cultural activities and travel. Without delving into specifics, Mitsotakis said that this will cost about €30 million per year.
The prime minister also announced a 10% discount in property tax for homeowners insuring their homes against natural disasters year-round. This will cost €40 million.
Mitsotakis also said he would make sure civil servants, especially the lower-paid, but also mid-and high-ranking managers in “positions of responsibility” get better pay. He will also increase allowances for children starting January 1, 2024. He put the combined annual cost of these measures at €500 million.
Mitsotakis said both public and private sector wages would rise significantly in his second four-year term, if he wins one. “We can increase the average (monthly) wage within the next four years by about 25%, to 1,500 euros, while the minimum wage will get close to 950 euros,” he said, adding that the minimum wage hikes in his first term exceeded his commitments before the last election, in 2019.
The gross monthly wage, before income tax and social security contributions, rose on April 1st from €713 to €780. It was €650 when Mitsotakis’ government assumed office in 2019.
The main opposition SYRIZA party attacked Mitsotakis for his announcements, accusing him of trying to buy the 18-year-olds’ vote at €150 each and of acting as “the insurance companies’ dealer” by offering the property tax discount on those insuring their homes against natural disasters.
SYRIZA has promised high school seniors, who will take the national university entrance exams in June, and who are all eligible to vote, that it will make it easier for them to enter university by abolishing the minimum required grade.
