Employment is highly taxed in Greece! The burden, as compared to other countries, increases as rapidly as the income scale. For a net annual salary of EUR 20,000, the Greek state deducts from employees an average of 44% of the amount paid by their employer, based on a study of the Hellenic Federation of Enterprises (SEV).
Only 6 European countries withhold more. The announcement of a reduction in the special solidarity levy shifts the tax burden and levies in this case to the 11th highest position among the 26 Member States, always above average. To be competitive the tax burden and levy on employer costs would have to be around 35%.
Currently, for net earnings of EUR 40,000 a year, 60% of the amount paid by the employer is deducted through taxes and contributions.
It is worth noting that the announcement of a reduction in the special solidarity levy reduces this burden, but does not change Greece’s relative position. A competitive charge rate would be around 40%. Despite this very high tax and levy burden, the Greek state’s income from physical income tax and labor contributions is significantly behind the European average (as a percentage of GDP). Specifically, it is around 16%, when the Community average is around 21%.
World Economic Forum registers Greece as an EU country in which taxation is the greatest disincentive to work.
At the same time, Greece is the country with the smallest employment in large businesses (5% of the population instead of 12.7% in the EU – less than half), while large businesses mainly employ full-time workers with salaries of up to twice as much on average as small businesses./ibna