Understanding Employer Tax Obligations in Greece

When establishing operations in Greece, international companies must navigate a comprehensive social security system. Employers are required to contribute 22.29% of an employee's gross salary toward mandatory benefits. This breakdown includes:

Pension Insurance: 13.33%
Supplementary Pension: 3%
Health Insurance: 4.3%
Supplementary Health Insurance: 0.25%
Unemployment Insurance & Additional Contributions: 1.41%

Pension Insurance Framework

Greek pension regulations mandate a total contribution of 20% of gross salary, with employers covering 13.33%. The national pension system, administered through e-EFKA, establishes specific eligibility criteria:

Full pension at age 62 with 40 years of contributions (12,000 days)
Reduced pension at age 62 with 15 years of contributions (4,500 days)
Full pension at age 67 with 15 years of contributions

Recent legislative changes under Law 4387/2016 introduced a two-component pension structure: contributory and national pensions. Early retirement triggers reductions in national pension benefits, while contributory amounts remain unchanged.

Supplementary Pension Contributions

Since June 2022, supplementary pension contributions have been standardized at 6% of gross salary, equally shared between employer and employee. Employers typically handle these contributions through the APD system, ensuring compliance with Laws 4670/2020 and 4756/2020.

Healthcare Coverage Requirements

Employers contribute 4.3% toward Greece's national healthcare system, which provides comprehensive medical services through EOPYY. Coverage includes:

Primary and specialized medical care
Hospitalization and emergency services
Preventive dental care and specific treatments
Pharmaceutical coverage with varying co-payments

Employees gain access to public healthcare facilities and contracted private providers, though certain limitations apply to private sector services.

Additional Employer Responsibilities

Beyond mandatory contributions, many Greek employers enhance their compensation packages with voluntary benefits such as education allowances, transportation subsidies, and professional development opportunities. These practices help attract and retain talent in competitive markets.

Employee Tax Responsibilities in Greece

Greek employees face a combined tax and social security burden ranging from 22.87% to 57.87% of their income, depending on earnings level. The structure includes:

Pension Insurance: 6.67%
Supplementary Pension: 3%
Health Insurance: 2.55%
Unemployment Insurance: 1.65%
Progressive Income Tax: 9%-44%

Progressive Income Tax Structure

Greece employs a tiered income tax system that adjusts rates according to earnings brackets. The 2024 tax schedule demonstrates this progression:

Income Bracket (EUR)	Tax Rate	Tax Amount
0-10,000	9%	900
10,001-20,000	22%	2,200
20,001-30,000	28%	2,800
30,001-40,000	36%	3,600
40,001+	44%	Variable

Tax residents are subject to taxation on worldwide income, while non-residents pay tax only on Greek-source earnings. Recent reforms have reduced rates for lower income brackets while maintaining progressivity.

Navigating Greek Employment Regulations

Companies expanding into Greece often benefit from professional guidance to ensure compliance with evolving regulations. SailGlobal provides specialized support for international businesses establishing Greek operations, offering tailored solutions for tax optimization and regulatory compliance.

Greek Employer Tax Guide 2024: Social Security & Compliance Requirements