Taxes in Greece

Employers pay social insurance contributions to e-EFKA on top of gross salary. For a standard private-sector salaried employee, the employer rate is 21.79% of gross pay. Contributions fund main and supplementary pensions, healthcare (both medical treatment and cash benefits such as sickness pay), and unemployment insurance through the Public Employment Service (DYPA).

Contributions are calculated on gross monthly earnings up to €7,761.94 per month in 2026, up 2.5% from 2025. No contributions are due on earnings above the ceiling in any month.

Employers with employees in heavy or unhealthy occupations make additional contributions. The figures above apply to a standard salaried employee.

Employees have 13.37% of gross salary withheld for e-EFKA, deducted by the employer through payroll and subject to the same monthly ceiling of €7,761.94. The deduction applies from the first euro of earnings, with no lower threshold.

Employment income is taxed on a progressive scale. Following the tax reform that took effect on 1 January 2026, a taxpayer with no dependent children is taxed on the following scale.

Employers withhold income tax monthly through payroll using the official withholding tables, so employees do not normally settle salary tax themselves.

The former special solidarity levy no longer applies to employment income.

Lower rates for families

The second and third bands fall with the number of dependent children.

• One child: each of the two bands decreases by 2 points, to 18% and 24%
• Two children: decreased by 4 points, to 16% and 22%
• Three children: the second band drops down 11 points to 9%, and the third down 6 points to 20%
• Four children: 0% on the first €20,000, with the third band down to 18%
• Five+ children: keep the 0% on the first €20,000, and the third band falls a further 2 points for each additional child

Lower rates for young workers

Two youth rules also apply from 2026:

• Taxpayers aged up to 25 pay 0% on the first €20,000
• Taxpayers aged 26-30 pay 9% instead of 20% on the €10,001-20,000 band

The tax computed on the scale is then reduced by an annual tax credit that rises with the number of dependent children:

• Relocating employees: Individuals who transfer their tax residence to Greece to take up a new position of employment may qualify for a 50% exemption on Greek employment income for seven tax years, subject to conditions. These include not having been a Greek tax resident in five of the previous six years, relocating from an EU/EEA or cooperating state, and committing to remain in Greece for at least two years.
• Hiring subsidies: The Public Employment Service (DYPA) runs subsidised-hiring programmes for target groups such as young people, long-term unemployed and workers over 55, covering part of the wage and contribution cost for a fixed period. Programmes open and close throughout the year and should be checked directly with DYPA when hiring.

Several employer payments sit outside taxable salary within limits:

• Reimbursement of business travel, subsistence and accommodation costs
• Childcare cost coverage of up to €5,000 a year
• A birth-support payment of up to €5,000 within twelve months of a birth, plus €5,000 per further dependent child
• Coverage of an employee’s or a relative’s hospital costs, under conditions
• Meal vouchers of up to €6 per working day, redeemed through a merchant network. Tips received by employees are tax-free up to a cumulative €6,000 per year, equivalent to an average of €500 per month.