Salary increases for 1 million private sector employees in Greece

Approximately 1 million private sector employees in Greece are expected to see salary increases due to changes in direct taxation. The reduction in monthly tax withholding leads to an increase in net earnings.

According to the Ministry of Finance, this is the largest reduction in direct taxes since the Metapolitefsi. The adjustments to the tax brackets provide for reductions in income tax rates from 2 to 8 percentage points for the majority of employees, while for families with many children, the reductions reach up to 22 percentage points.

Examples:

• A 25-year-old with an annual income of €15,000 will have zero tax.
• A 29-year-old with a salary of €1,500 will be taxed at 9% instead of 22%.
• A family with three children and a salary of €1,540 will have an increase of €121 per month.

Self-employed individuals and farmers will see the benefit when submitting their tax returns for the 2026 tax year in March 2027.

The tax reform was submitted to Parliament by the Minister of National Economy and Finance, Kyriakos Pierrakakis, and the Deputy Minister Thanos Petralias, and was passed last November.