After the new tax measures and contribution hikes, Greek wage earners will see only 42.50-67 euros going to their pockets for every 100 euros they make.
The remainder 33-57.50 will go to state coffers in the form of income tax, security fund contributions and other deductions. The income tax and the solidarity contribution are now deducted directly from the employee’s paycheck. In addition, besides higher taxes, the employer has to pay a higher solidarity contribution from now on.
For instance, if the average annual gross salary of a worker with two children is 20,296 euros, the state is to withhold 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 pension funds, 7.56 percent goes to the tax authorities and the employee is left with 20,110 euros per year net, or 1,080 euros per month, even though the employer has paid 1,826 euros per month.
According to new data by the Organization for Economic Cooperation and Development (OECD), Greece is the leader in deducting money from workers’ salaries among the countries of the euro zone.
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