ATHENS – With some of the world’s highest income tax rates – 45 percent for those making 40,000 euros ($43,798) annually – and soaring prices, Greeks will be getting pay raises and a higher minimum wage.

Government spokesperson Pavlos Marinakis told SKAI TV that the New Democracy administration wants to counteract what he called “imported but also persistent” high prices, especially for food and rent.

Public workers will be getting raises for the first time in 14 years, since the beginning of an economic and austerity crisis in 2010 that brought big pay cuts, tax hikes, slashed pensions and worker firings in return for 326 billion euros ($356.95 billion) in three international bailouts.

There will also be a higher  tax-free allowance for families with children, increases in child benefit, maternity benefits, longer maternity and paternity leave and a 2000-euro ($2190) for each birth.

He also noted programs to help families buy or renovate homes although some skeptics said it wasn’ enough to help, while the government is also providing support for childcare costs.

“This is because we saw a huge, existing problem. Greece is growing old. (For) most young people – I see this with my friends and acquaintances – it is very hard (to have children) … if high prices are the biggest battle that both we and the other countries are fighting, tackling the demographic problem, supporting young families, is the biggest wager. The family is at the core of ND’s policy and will remain so,” he said.

He noted the government’s pledge to increase the minimum wage to 950 euros ($1040) a month during its current term, and the average wage to 1,500 euros ($1642) and said there will be increases in the minimum wage but no plans to cut the income tax rates that are near confiscatory.