| 24.81% | rate for the employer |
| 15.75% | rate for the employee |
A local employer is obliged to register the employee, then deduct and pay the respective contributions on behalf of the employee and the employer´s part. When it comes to foreign employers, only the employment relationship is registered, while the employee is responsible for the payments to the social authorities.
Social security is calculated from the gross taxable income without accord to social and health contributions decreasing the tax base, whereby a maximum base is applicable. It is calculated on the monthly basis, from the monthly salary.
The maximum calculation base depends on average salary in Greece. Currently in 2020, the amount is EUR 6,500 per month. It is applicable to the whole income of the employee, from all employers.
Social security contributions are calculated and paid separately from the due tax, as they are separate systems from tax. Although the contributions are paid both by the employee and the employers, the reporting and payment is done by the employer on a monthly basis. In case there are more employers, all of them are obliged to report and pay.
A1 forms for purposes of the Art. 12 of the EU regulation 883/2004 are generally issued only for the duration of each respective posting. A1 forms for purposes of the Art. 13 or 16 of the EU regulation 883/2004 may be issued for period of 1 to 2 years. Greek authorities do a thorough check of documents and conditions before issuing A1 form. Therefore, it may be lengthy process.
The health insurance contributions are covered by the social security contributions. However, employees must register for health insurance as an insured person.
Health insurance contributions are calculated from the gross taxable income (in-kind included). The same maximum calculation base is applicable as in the case of social security, i.e. EUR 6,500 per month.
Although the contributions are paid both by the employee and the employers, the reporting and payment is done by the employer on a monthly basis.
Disclaimer
Please note that our posts and articles have been prepared for general guidance on the matter and do not represent a customized professional advice. Furthermore, because the legislation is changing continuously, some of the information may have been modified after the publication has been released. Atlas Consulting does not take any responsibility and is not liable for any potential risks or damages caused by taking actions based on the information provided herein.