BUSINESS

Greece is the champion in deductions

THANOS TSIROS

TAGS: Economy, Taxation

Greece is the leader in withholding money from workers’ salaries among the countries of the eurozone and the Organization for Economic Cooperation and Development (OECD), new data show.

As of this year, for every 100 euros employers pay for their employees, just between 42.50 and 67 euros will reach workers’ pockets, depending on the size of the salary. The remainder, from 33 to 57.50 euros, goes into state coffers, either in the form of social security contributions or in the form of taxes.

The income tax and solidarity levy are now directly deducted from workers’ gross salaries based on the new tax rates, while half a percentage point has been added to the social security contribution paid by the employee and that paid by the employer.

Therefore, from the average annual gross salary of a worker with two children coming to 20,296 euros, the state is withholding a far from negligible 40.9 percent this year. In practical terms this means that the employer pays 25,573 euros per year, of which 33.33 percent goes to the pension funds, 7.56 percent goes to the tax authorities and the employers is left with 20,110 euros per year net, or 1,080 euros per month, even though the employer has paid 1,826 euros.
 

Online