How does Greek payroll tax work in 2026?
Greece runs a unified social security system called e-EFKA. The employer contributes 21.79% on top of gross salary. The contribution ceiling is €7,761.94/month. Above that ceiling, no further social security is owed. No other EU country in this study combines a rate this high with a monthly cap this low.
· Greece guide
Illustration · Athens, Greece
In Greece, the employer pays e-EFKA social security at 21.79% on gross earnings. The employee pays 13.37%. Both rates apply on earnings up to €7,761.94/month. Above that ceiling, no further contributions are owed.
Greece has no personal allowance. Instead, a tax credit reduces the final bill. Income tax has six bands. The first band taxes earnings up to €10,000 at 9%. The top rate of 44% applies above €60,000.
Payroll runs monthly. Employers pay income tax withheld by the last working day of the second month after the payroll month. Greece also requires a 13th and 14th salary payment each year. These are split as a Christmas bonus, an Easter bonus, and a summer holiday allowance.
What does an employer pay in Greek social security?
The employer contributes 21.79% of gross salary to e-EFKA. This rate covers primary pension, supplementary pension, healthcare, and unemployment insurance in a single combined charge.
Contributions apply on earnings up to €7,761.94/month. Above that ceiling, no further employer social security is owed for the month.
| Contribution | Rate | Ceiling |
|---|---|---|
| e-EFKA (employer, combined) | 21.79% | €7,761.94/month |
What the employer rate covers
The e-EFKA employer rate bundles every branch of social insurance into a single figure. Primary pension (ETEA), supplementary pension, healthcare (EOPYY), and unemployment (OAED/DYPA) are all included. There is no separate payroll tax, apprenticeship levy, or welfare levy on top of this rate. The rate has been fixed at 21.79% since January 2025 and carries forward unchanged for 2026.
Greece's 13th and 14th salary
Employers in Greece must pay two additional salary instalments each year under the holiday allowance regime. These are not discretionary bonuses; they are legal obligations.
- Christmas bonus (due by 21 December): one full monthly salary, prorated by the months worked in the second half of the year
- Easter bonus (due by Holy Wednesday): half a monthly salary, prorated by the months worked since 1 January
- Summer holiday allowance (due when the employee takes annual leave): half a monthly salary, prorated by the months worked since 1 January
In practice, the Easter bonus and summer holiday allowance together equal one full monthly salary, giving most full-year employees 14 salary events annually. e-EFKA contributions apply to these payments at the same employer rate.
What does an employee pay in Greek social security?
The employee contributes 13.37% of gross salary to e-EFKA. This covers the employee share of all social insurance branches.
The ceiling is the same as for employers: €7,761.94/month. Earnings above the ceiling attract no further employee contribution.
| Earnings band | Employee e-EFKA rate |
|---|---|
| Up to €7,761.94/month | 13.37% |
| Above €7,761.94/month | 0% |
The e-EFKA employee rate applies from the first euro of earnings with no lower threshold. An employee earning exactly the statutory minimum wage of €920/month pays 13.37% on the full amount.
The combined employer and employee e-EFKA rate totals 35.16% (21.79% employer plus 13.37% employee). This is the all-in social security cost on gross payroll up to the ceiling. No separate social charge or health levy sits outside these rates.
Pension within e-EFKA
Greece does not have a separate mandatory employer pension contribution outside e-EFKA. Pension savings (primary fund ETEA and the supplementary fund) are fully bundled inside the 21.79% employer and 13.37% employee rates. There is no auto-enrolment threshold or qualifying earnings band for pension; the full e-EFKA rate applies from day one of employment.
Greece income tax bands for 2026
Greece taxes employment income on a six-band scale. The first €10,000 is taxed at 9%. The top rate of 44% applies above €60,000.
Greece does not use a personal allowance to reduce taxable income. A tax credit system reduces the final tax bill instead. The credit amount depends on income level and number of dependants.
| Income band (2026) | Rate |
|---|---|
| €0 to €10,000 | 9% |
| €10,001 to €20,000 | 20% |
| €20,001 to €30,000 | 26% |
| €30,001 to €40,000 | 34% |
| €40,001 to €60,000 | 39% |
| Above €60,000 | 44% |
The tax credit system
Instead of a tax-free personal allowance, Greece grants a tax credit against the calculated income tax liability. For a single employed person with no dependants, the credit is up to EUR 777 per year. The credit scales up with the number of dependent children. It is deducted from the calculated tax, not from taxable income. If the credit exceeds the tax owed, no repayment is made. Because this is a credit rather than an allowance, the lower income bands bear the full stated rates; the credit then reduces the bill.
Law 5246/2025 rate changes
The current six-band scale was revised by Law 5246/2025, effective from tax year 2026. The top rate of 44% for income above €60,000 was introduced under that revision. Teamed’s payroll applies the correct withholding schedule from the start of each tax year.
How does Greek payroll filing work?
Greek employers run monthly payroll. Salaries are paid on the last working day of each month.
Withheld income tax is remitted to the Greek tax authority (AADE) by the last working day of the second month following the payroll month. e-EFKA contributions are submitted and paid monthly as well.
Every employer running Greek payroll must submit monthly social security declarations to e-EFKA and remit contributions on time. Income tax withheld from employees is declared to the tax authority (AADE) and paid by the last working day of the second month following the payroll month. Late remittance attracts interest and penalties under the Greek Code of Tax Procedure.
Source: Ministry of Labour and Social Affairs: Insurance Contributions
The main employer filing obligations each month:
- Analytic Periodic Declaration (APD): submit earnings and e-EFKA contributions for each employee to e-EFKA by the monthly deadline
- e-EFKA payment: pay the combined contribution (employer 21.79% plus employee 13.37%) by the same deadline
- Income tax withholding return: declare withheld income tax to AADE and pay by the last working day of the second month following the payroll month
- ERGANI notification: report new hires, leavers, and contract changes to the Ministry of Labour ERGANI platform before or on the date the change occurs
Greece requires the ERGANI notification to precede or coincide with the first day of work. An employer who begins a new hire’s employment without an ERGANI record faces significant penalties. Teamed handles all ERGANI filings as part of the standard onboarding flow.
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Register on ERGANI before day one
Submit the new employee notification to the Ministry of Labour ERGANI platform before or on the first working day. This must happen before work begins.
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Collect pay data for the month
Gather base salary, any overtime or variable pay, and note whether a bonus payment (Christmas, Easter, or summer) falls in this period.
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Calculate gross pay and deductions
Apply the employee e-EFKA rate and the income tax withholding schedule to gross earnings. Check whether earnings exceed the monthly contribution ceiling.
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Calculate employer e-EFKA
Apply the employer e-EFKA rate on gross earnings up to the monthly ceiling. Add this to the total employer cost for the period.
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Submit the monthly APD to e-EFKA
File the Analytic Periodic Declaration with earnings and contribution data for each employee. Pay the combined e-EFKA amount by the monthly deadline.
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Remit withheld income tax to AADE
Declare and pay withheld income tax to the Greek tax authority by the last working day of the second month following this payroll month.
Pension contributions in the Greek payroll stack
Greece has no separate pension contribution outside e-EFKA. Pension savings are fully bundled inside the unified social security rate.
The employer pays 21.79% and the employee pays 13.37%. Both rates include the primary pension fund (ETEA) and the supplementary pension fund.
The e-EFKA rate breakdown (approximate, as published by PwC Greece):
- Primary pension: the largest portion of both the employer and employee rates
- Supplementary pension (ETEA Epikourikis): included within the combined rates
- Healthcare (EOPYY): included within the combined rates
- Unemployment (DYPA): employer-side portion included within the combined rates
Because all branches are unified, there is no separate pension payslip line. The full 13.37% employee deduction covers pension, healthcare, and unemployment together. This is structurally different from countries with discrete pension auto-enrolment on top of social security.
Mandatory bonus payments and their e-EFKA treatment
The Christmas bonus, Easter bonus, and summer holiday allowance are subject to e-EFKA contributions at the same rates as regular salary. Employers must include these payments in the monthly APD for the period in which they are paid. The combined cost to the employer in December (Christmas bonus month) is effectively double the usual monthly bill for that element: one regular salary plus one full bonus salary, each at 21.79% e-EFKA. Cash-flow planning for December and the spring Easter period is a common oversight for new Greece hires.
Minimum wage context
The statutory minimum monthly salary from April 2026 is €920/month gross. A full-year employee at minimum wage earns €920/month for twelve regular months plus the two additional salary equivalents. Employer e-EFKA at 21.79% applies on all of those payments.
How does Teamed handle Greek payroll for you?
Teamed becomes your legal employer of record in Greece for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, tax, social security, and the full Greek employment law stack run on one platform.
Real HR and legal experts handle your Greek hires, from the first ERGANI registration through every monthly APD filing and the 13th and 14th salary payments. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
EOR payroll, contractor onboarding, and entity setup all live on one platform. A Greek contractor who converts to payroll keeps their record. That same employee can graduate from EOR to your own Greek entity without switching systems. Run the Employer Cost Calculator to see the full picture. EOR is the right model for a first Greece hire, until it isn't. Start from the Greece hiring overview.
Key sources: Greek Ministry of Labour: Insurance Contributions, PwC Worldwide Tax Summaries: Greece, and PwC Greece Income Tax.
Frequently asked questions
What is the employer social security rate in Greece in 2026?
The employer pays e-EFKA social security at 21.79% of gross salary. This rate covers primary pension, supplementary pension, healthcare, and unemployment in a single charge. Contributions apply on earnings up to €7,761.94/month. Above that ceiling, no further employer contribution is owed for that month.
What social security does a Greek employee pay?
The employee pays e-EFKA at 13.37% of gross salary. The same monthly ceiling of €7,761.94/month applies. Contributions run from the first euro of earnings with no lower threshold. Greece does not have a separate pension contribution outside these rates.
What are the income tax bands in Greece for 2026?
Greece has six income tax bands. The rate starts at 9% on the first €10,000, rises to 20% on income from €10,001 to €20,000, then 26%, 34%, and 39%. The top rate of 44% applies above €60,000. Greece uses a tax credit system rather than a personal allowance.
What is the 13th and 14th salary in Greece and who pays it?
Every employee in Greece is legally entitled to two extra salary payments each year. The Christmas bonus (equal to one monthly salary) is due by 21 December. The Easter bonus (half a monthly salary) is due by Holy Wednesday. The summer holiday allowance (half a monthly salary) is due when the employee takes annual leave. Together these equal two extra monthly salaries per year. e-EFKA contributions apply at the standard rates on all three payments.
When must employers remit payroll taxes in Greece?
Payroll in Greece runs monthly. Withheld income tax is remitted to AADE by the last working day of the second month following the payroll month. e-EFKA contributions are submitted and paid monthly via the Analytic Periodic Declaration. New hires and leavers must be notified to the ERGANI platform before or on the relevant date.
The 13th and 14th salary trap catches almost every new Greece employer. They budget for twelve payroll runs and discover in December that they owe a full extra salary, plus e-EFKA on top of it. Add the Easter bonus in April and the summer holiday allowance at leave time, and you have three payroll spikes that need to be in the budget from day one of the hire.
Greece puts 21.79% employer e-EFKA on every payroll run, then caps contributions at €7,761.94/month. Most employers only see the rate.
Add two extra salary payments a year, monthly ERGANI filings, and a six-band income tax scale up to 44%.
Know the ceiling before you set the salary. Run the numbers first.
