How Greece's tax system works
Greece operates a progressive income tax system with five brackets ranging from 9% to 44%. The solidarity contribution (eisphora allilengis) has been abolished for employment income since 2023, and Greece does not impose municipal income taxes or solidarity surcharges on employment income.
Income tax brackets (2026)
| Annual taxable income | Tax rate |
|---|---|
| Up to €10,000 | 9% |
| €10,001 – €20,000 | 22% |
| €20,001 – €30,000 | 28% |
| €30,001 – €40,000 | 36% |
| Above €40,000 | 44% |
Greece offers a tax reduction of €777 for taxpayers with income up to €12,000, which phases out for income between €12,000 and approximately €16,500. Taxpayers are also required to conduct a minimum percentage of transactions electronically (typically 30% of real income) to qualify for this tax reduction — failure to meet this threshold results in a penalty of 22% on the shortfall.
Employee social contributions
| Contribution | Rate |
|---|---|
| Main pension fund (e-EFKA) | 6.67% |
| Supplementary pension | 3.25% |
| Healthcare | 2.15% |
| Unemployment | 1.20% |
| Other social risks | 0.60% |
| Total employee contributions | ~13.87% |
Employer social contributions
| Contribution | Rate |
|---|---|
| Pension, healthcare, unemployment & other funds | 22.29% |
| Total employer contributions | ~22.29% |
These rates apply uniformly to all employment income without an upper ceiling for most categories.
Notable features of the Greek tax system
One of the most distinctive aspects of Greek employment law is the mandatory bonus payment structure. Employees are legally entitled to a Christmas bonus equal to one full monthly salary, an Easter bonus equal to half a monthly salary, and a vacation bonus equal to half a monthly salary. Together these amount to approximately two additional months of pay per year. These are not discretionary employer benefits — they are statutory obligations enshrined in law, and failure to pay them can result in significant penalties. All three bonuses are subject to the same income tax and social contribution rules as regular salary, which means employers must budget for 14 months of salary cost rather than 12 when calculating annual employment expenses.
Greece's electronic transaction requirement is another unusual feature worth understanding. To qualify for the €777 tax reduction on low incomes, taxpayers must demonstrate that at least 30% of their declared real income was spent through electronic payment methods — credit cards, debit cards, or bank transfers. If a taxpayer falls short of this threshold, a penalty tax of 22% is applied to the difference between the required amount and the actual electronic spending. This policy was introduced as part of Greece's broader effort to combat tax evasion and reduce the shadow economy, which historically represented a significant portion of GDP. The measure has been effective in driving card payment adoption, particularly in sectors like hospitality and retail that previously operated heavily in cash.
Severance pay obligations in Greece can be substantial and represent an important cost consideration for employers. The amount depends on length of service: an employee dismissed after 28 years of service is entitled to 12 months of salary as severance, the maximum under Greek law. Severance is calculated based on the employee's last regular monthly salary including the pro-rata portion of mandatory bonuses. For white-collar employees, prior notice requirements also apply, and failure to provide adequate notice converts the obligation into immediate payment. These provisions make Greek employment relationships relatively protective by EU standards, and employers are advised to maintain adequate reserves for potential severance liabilities, particularly for long-tenured staff.
Minimum wage in Greece (2026)
The statutory minimum gross wage in Greece is €968 per month as of 2026. This is the minimum amount employers must pay before taxes and social contributions are deducted. Use the calculator below to see what this translates to in net take-home pay.
How taxation scales with income in Greece
Try the calculator
Enter a gross salary amount to see the net take-home pay, or switch to net-to-gross mode to find out what gross salary is needed for a specific net target. The calculator uses Greece's 2026 tax rates, social contribution rules, and applicable allowances.
Also available for Greece
Data sources
Tax rates, social contribution percentages, and minimum wage data used in this calculator are sourced from official government publications and Eurostat, updated for 2026.
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