• Table of Contents

  • What are the social charges for companies in Greece? All To know Social charges Greece
  • Introduction
  • Social charges in Greece
  • The impact of social charges on businesses in Greece
  • Measures taken to reduce social charges in Greece
  • Conclusion

What are the social charges for companies in Greece? All To know Social charges Greece

Introduction

Greece is a country that has experienced a major economic crisis in recent years. This crisis has had a significant impact on companies in the country, which have had to deal with high social charges. In this article, we will explore the corporate payroll taxes in Greece and their impact on the country's economy.

Social charges in Greece

Social charges in Greece are high and represent a significant part of the costs for companies. Social charges include social security contributions, contributions to pension schemes and contributions to health insurance schemes.

Social security contributions in Greece are calculated on the basis of employees' gross salaries. Employers must pay a social contribution of 28,06% on the gross salaries of their employees, while employees must pay a social contribution of 16% on their gross salary. Social security contributions are paid to the Social Security Organization (IKA).

Contributions to pension schemes in Greece are also high. Employers must pay a contribution of 20,66% on the gross wages of their employees, while employees must pay a contribution of 13,33% on their gross wages. Contributions to pension schemes are paid to the Social Security Organization (IKA).

Contributions to health insurance schemes in Greece are also high. Employers must pay a contribution of 6,67% on the gross wages of their employees, while employees must pay a contribution of 4,24% on their gross wages. Contributions to health insurance schemes are paid to the National Health Insurance Organization (EOPYY).

The impact of social charges on businesses in Greece

The high social charges in Greece have a significant impact on businesses in the country. Companies have to bear high costs to pay social security contributions, contributions to pension schemes and contributions to health insurance schemes.

These high costs can make companies less competitive in the international market. Companies may find it difficult to compete with companies from other countries that have lower payroll taxes.

High payroll taxes can also make businesses less profitable. Companies have to bear high costs to pay social security contributions, pension plan contributions and health insurance plan contributions, which can reduce their profit margin.

Finally, high social charges can make companies less attractive to foreign investors. Foreign investors may be discouraged from investing in businesses in Greece due to the high costs associated with social charges.

Measures taken to reduce social charges in Greece

The Greek government has taken steps to reduce payroll taxes for companies in the country. In 2019, the government announced a reduction in social contributions for employers by 6 percentage points. This reduction should allow companies to reduce their costs and improve their competitiveness.

The Greek government has also taken steps to reduce contributions to pension schemes. In 2019, the government announced a reduction in pension contributions for employers by 3 percentage points. This reduction should allow companies to reduce their costs and improve their profitability.

Finally, the Greek government has taken steps to reduce contributions to health insurance schemes. In 2019, the government announced a reduction in contributions to health insurance schemes for employers by 1 percentage point. This reduction should allow companies to reduce their costs and improve their attractiveness to foreign investors.

Conclusion

In conclusion, social security charges for companies in Greece are high and represent a significant part of the costs for companies. High payroll taxes can make companies less competitive on the international market, less profitable and less attractive to foreign investors.

However, the Greek government has taken steps to reduce payroll taxes for companies in the country. These measures should enable companies to reduce their costs and improve their competitiveness, profitability and attractiveness to foreign investors.

It is important that the Greek government continues to take action to reduce payroll taxes for businesses in the country to stimulate the economy and foster long-term economic growth.