The Greek government is expected to move ahead with another reduction
The Greek government is expected to move ahead with another reduction in social security contributions as early as 2026, a year earlier than originally planned. The cut—amounting to half a percentage point—was initially scheduled for 2027, though officials are leaving open the possibility of an even larger reduction.
The measure is part of a broader effort to strengthen business competitiveness and ease the non-wage cost burden on employers. With this planned adjustment, total social security contributions will have fallen by 5.9% since 2019, bringing the rate down to 35.66%—closer to the European Union average.
This upcoming reduction also addresses an outstanding commitment: a 0.6-point cut that remained from the government’s pledge to lower non-wage labor costs by a total of five points between 2020 and 2023. According to the Ministry of Labor, the 5.9% reduction ranks among the steepest ever achieved by an EU member state and has already contributed to the creation of 500,000 new jobs.
In parallel, a regulatory change introduced in March altered how contributions are calculated for overtime, extra hours, night shifts, and holiday work. Instead of being based on the higher, surcharge-inclusive hourly wage, contributions are now calculated on the standard eight-hour rate.
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