Updated: 2025-08-14
Introduction
Calculating net salary in Greece involves many parameters: tax brackets, EFKA (social security) contributions, tax credits, and the impact of 13th/14th salary bonuses. In this comprehensive guide, we’ll examine all these elements in detail.
Important: From 2026, new reduced tax brackets will apply. Read about the Greek income tax changes for 2026 for complete information.
Income Tax Brackets 2025
Tax Brackets Table
Income tax in Greece is calculated using progressive brackets:
| Income (€) | Tax Rate | Example Tax |
|---|---|---|
| 0 - 10,000 | 9% | €900 maximum |
| 10,001 - 20,000 | 22% | €2,200 additional |
| 20,001 - 30,000 | 28% | €2,800 additional |
| 30,001 - 40,000 | 36% | €3,600 additional |
| 40,001+ | 44% | 44% on additional |
How Progressive Brackets Work
If you have an income of €25,000, you don’t pay 28% on the entire amount. You pay:
- 9% on the first €10,000 = €900
- 22% on the next €10,000 = €2,200
- 28% on the last €5,000 = €1,400
- Total tax: €4,500 (18% of total income)
EFKA Social Security Contributions 2025
Employee Contributions
- Rate: 13.37%
- Maximum ceiling: €7,572.62 monthly
- Maximum contribution: €1,013 monthly
Employee contributions are deducted from gross salary.
Employer Contributions
- Rate: 21.79%
- Employer contributions are not deducted from the employee’s salary
13th and 14th Salary
In Greece, most employees receive additional compensation:
Distribution of Additional Salaries
- 13th Salary: 1 full salary at Christmas
- 14th Salary: 0.5 salary at Easter + 0.5 salary for vacation
Impact on Taxation
Distributing tax over 14 salaries instead of 12 reduces the monthly tax withheld.
Employment Tax Credit
Basic Credit Amounts
- 0 children: €777
- 1 child: €810
- 2 children: €1,120
Credit Reduction
The credit is reduced by €20 for every €1,000 of income above €12,000.
Examples
Example 1: Salary €1,800 - 14 salaries - 0 children
Annual Income: €1,800 × 14 = €25,200
EFKA Contributions: €1,800 × 13.37% × 14 = €3,369
Taxable Income: €25,200 - €3,369 = €21,831
Income Tax: €3,613
Tax Credit: €580
Final Tax: €3,033
Results:
- Monthly EFKA: €241
- Monthly Tax: €217
- Monthly Net Salary: €1,342
Example 2: Salary €2,500 - 14 salaries - 1 child
Annual Income: €2,500 × 14 = €35,000
EFKA Contributions: €2,500 × 13.37% × 14 = €4,680
Taxable Income: €35,000 - €4,680 = €30,320
Income Tax: €7,470
Tax Credit: €407
Final Tax: €7,063
Results:
- Monthly EFKA: €334
- Monthly Tax: €505
- Monthly Net Salary: €1,661
Example 3: High Salary €4,000 - 14 salaries - 2 children
Annual Income: €4,000 × 14 = €56,000
EFKA Contributions: €4,000 × 13.37% × 14 = €7,488
Taxable Income: €56,000 - €7,488 = €48,512
Income Tax: €18,306
Tax Credit: €275
Final Tax: €18,031
Results:
- Monthly EFKA: €535
- Monthly Tax: €1,288
- Monthly Net Salary: €2,177
Comparison: 12 vs 14 Salaries
Impact on Monthly Take-Home
The same annual salary distributed over 14 payments instead of 12 affects monthly withholding:
Example: €30,000 annual income
- 12 salaries: €2,500/month → Higher monthly tax withheld
- 14 salaries: €2,143/month → Lower monthly tax withheld
The total annual tax is the same, but monthly cash flow differs.
Special Considerations
Reduced Tax Rate (Article 5G)
New residents can benefit from a 50% tax reduction for 7 years if they:
- Establish permanent residence in Greece
- Did not have Greek tax residence for 5 of the last 6 years
- Stay for at least 2 years
Overtime and Bonuses
- Overtime: Taxed as regular income
- Annual bonuses: May push you into higher tax brackets
- Benefits in kind: Generally taxable at market value
Multiple Income Sources
If you have additional income (freelance, rental, etc.), different rules may apply:
- Freelance income: Separate calculation with business expenses
- Rental income: Different tax rates and deductions
- Investment income: Special rates for dividends and capital gains
Social Security Benefits
Your EFKA contributions provide:
- Healthcare coverage
- Pension rights
- Unemployment benefits
- Maternity/paternity leave
- Disability benefits
Practical Tips
1. Salary Negotiation
When negotiating salary, consider:
- Net vs gross amounts
- Impact of additional benefits
- Timing of bonuses and their tax implications
2. Tax Planning
- Maximize deductible expenses
- Consider timing of bonuses
- Plan major purchases for tax deductions
3. Family Planning
Additional children provide higher tax credits:
- Each child increases your annual credit
- Married couples can optimize family taxation
4. Professional Development
Work-related education and training may be:
- Tax-deductible for employees
- Provided tax-free by employers
Using Our Tools
Calculate your exact net salary with our free calculators:
- Gross to Net Calculator - Calculate net from gross salary
- Net to Gross Calculator - Find required gross for target net
- Employee vs Contractor - Compare employment vs freelancing
Regional Variations
While tax rates are uniform across Greece, consider:
- Cost of living differences between Athens, Thessaloniki, and islands
- Housing allowances in some sectors
- Transportation benefits in major cities
Year-End Reconciliation
At year-end, you may need to:
- File annual tax returns
- Claim additional deductions
- Pay additional tax or receive refunds
- Plan for next year’s withholding
Key Takeaways
- Progressive taxation: Higher income = higher marginal rates
- Social security first: EFKA deducted before tax calculation
- 14 salaries benefit: Lower monthly withholding
- Credits matter: Children and other credits reduce final tax
- Plan ahead: Consider timing and structure of income
Understanding Greek salary calculation helps you make informed career and financial decisions. Always consult tax professionals for complex situations involving multiple income sources or significant changes in circumstances.
Last updated: August 2025. Tax rates and rules may change. Always verify with official sources.