Payroll taxes in Greece that are of key importance to employers include income tax withholding and social security contributions. Learn more about the processes for setting up payroll, calculating taxes, submitting payments compliantly, and adhering to due dates in Greece.
Capital City
Athens
Currency
Euro
(
€
)
Timezone
EET
(
GMT +2
)
Payroll
Monthly
Employment Cost
22.29%
Understanding payroll taxes in Greece is essential for businesses of all sizes to ensure compliance with local tax laws and maintain smooth operations. Employers need to manage various taxes, such as income tax withholding, social security contributions, and other levies, which are key to employee compensation and government funding. Non-compliance can lead to penalties and strained employee relations, making it crucial for employers to understand calculations, deadlines, and filing procedures. Tax laws may vary depending on location, income levels, and business size.
1 January - 31 December is the 12-month accounting period that businesses in Greece use for financial and tax reporting purposes.
The payroll cycle in Greece is usually monthly, with employees being paid on the last working day of the month.
The minimum wage for employees in Greece is typically 4.875 EUR per hour, amounting to ~780 EUR per month for a typical 40 hour work week.
Greek law mandates private sector employees to receive two extra monthly salaries, distributed as Christmas (one month's salary), Easter (half a month's salary), and Vacation Bonus (half a month's salary). If Christmas bonuses are delayed, employees can file complaints with labour inspectorates, potentially resulting in fines.
Employers in Greece must adhere to various types of payroll taxes, each governed by specific regulations. Below are the main categories:
Employers must withhold income tax from employees' salaries based on progressive tax rates. As of 2024, the rates are:
Employers must calculate the correct amount, withhold it from employee salaries, and remit it to tax authorities. Non-compliance can result in penalties.
Both employers and employees must contribute to Greece's social security system, covering pensions, healthcare, and other benefits. Contribution rates as of 2024 are:
Total: 22.29% + €20/year
Total: 13.87%
Employers are responsible for deducting employee contributions and submitting both portions to the relevant authorities.
Additional levies may apply, depending on industry-specific obligations or supplementary pension fund requirements. Employers should stay updated on relevant regulations to ensure full compliance.
Setting up payroll correctly is crucial for compliance with legal requirements and maintaining employee trust. Employers must register with the local tax office and social security institution (EFKA) and maintain accurate records.
Here’s an example for an employee earning €2,000 monthly:
Total: €277.40
Total: €445.80 + €20/year
Employers can submit payroll taxes using the following methods:
Understanding the tax obligations for both employers and employees is crucial when operating in Greece's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Greece.
Employer payroll contributions are generally estimated at an additional 22.29% on top of the employee salary in Greece.
In Greece , the typical estimation for employee payroll contributions cost is around 15.87%.
Income tax in Greece follows a progressive rate structure, where factors such as household status and the number of children can influence the overall tax rates.
In Greece, individuals must reach a minimum age of 62 and accumulate 40 years of insurance contributions to the Greek Social Security system to qualify for the complete retirement pension. This pension is disbursed monthly.
Global employers operating in Greece often encounter unique payroll challenges that can affect compliance and efficiency, like navigating evolving tax laws and managing employee data. With a need for real-time accuracy, modern organizations must develop strategies to overcome these challenges effectively. Below, we explore some of the most common payroll hurdles and provide actionable solutions to streamline payroll processes in Greece.
Maintaining accurate global payroll reports is often challenging due to currency exchange complexities, data integration issues, and the need to keep employee information up-to-date – including tax information, hours worked, leave balances, and any changes in salary or job status. Generating accurate reports is easy with a comprehensive payroll automation tool that consolidates fragmented data sources, and can keep track of employee payments and deductions.
In Greece, tax laws and compliance regulations can change frequently, presenting a significant challenge for global employers. Monitoring updates to federal, state, and local tax codes is crucial to avoid non-compliance and costly penalties, but requires significant time and resources. Partnering with local experts or a reputable global HR platform is an effective way to maintain compliance. These services can help employers stay compliant with evolving regulations while freeing up time for more strategic work.
Managing payroll across multiple vendors often leads to fragmented data and inefficiencies, making it difficult to consolidate analytics. These challenges can hinder decision-making, especially when trying to gain a clear view of workforce costs and trends. To address this, organizations can invest in a centralized payroll management system that unifies data from multiple vendors. A consolidated platform simplifies payroll tracking, ensures data accuracy, and provides actionable insights into payroll expenditures.
Global companies are prone to using multiple HR or payroll systems across regions, which can easily lead to fragmented payroll data, increasing the risk of delays and errors in employee compensation. To combat this, seamless integration between payroll and other systems is critical.
Payroll management systems that connect with existing HR and financial platforms can help streamline workflows by reducing manual inputs and ensuring that all departments operate with up-to-date, accurate information. In turn, this helps guarantee on-time, accurate payroll, boosting employee satisfaction.
A global payroll management platform is a software solution designed to streamline and automate the payroll processes for organizations with employees across multiple countries. It helps ensure accurate and timely payment while maintaining compliance with legal and regulatory requirements in Greece.
Key functions of a payroll management platform can include:
Expanding globally is an exciting milestone for any company, but it comes coupled with complex payroll challenges. It doesn’t have to be complicated. At Playroll, our easy-to-implement global payroll management software combines automation with hands-on support to make global payroll truly simple. Here's how Playroll helps:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Milani Notshe
Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.
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Payroll taxes are calculated by applying progressive income tax rates and social security contribution rates to employee earnings. Employers must remit withheld taxes to authorities.
Employers can manage payroll internally or outsource to specialized payroll service providers to reduce administrative burdens and ensure compliance.
Key elements include calculating gross salaries, withholding income tax, computing social security contributions, and ensuring timely submissions.
As of 2024, employer payroll contributions total approximately 22.29% of an employee’s gross salary plus €20/year, and employee contributions total 13.87% of gross salary.
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