Bonus from contribution cut

Greece is edging very close to both the European average and that of Organization for Economic Cooperation and Development countries in non-salary costs with the reduction of social security contributions by one percentage point that will apply from the beginning of 2025, for both private and public employees.

Throughout the previous period, in their reports on the social security and tax system of Greece, international organizations raised the alarm by pointing out that the high non-salary costs constitute a strong disincentive for investments, while eating into the income of workers. 

Given the further reduction by half a point in 2027, the total burden on employers and employees will have decreased by 5.9 percentage points from 2019, as a result of which Greece is approaching the OECD average and that of European countries in terms of the tax wedge of social...