Greek Payslip Explained
You’ve relocated to Greece and secured employment! You need help interpreting your well-earned pay stub since it is in Greek. In this article, we’ll break down the most crucial acronyms and terms on a Greek payslip so you can understand it.
Salary Deductions In Greece
Some expenses are subtracted from the total income to arrive at taxable income. These deductible costs, which are covered under particular Greek ITC laws, primarily consist of the following:
1: Contributions to social security that are required by law.
2: Donations and grants for specific purposes and to organizations and agencies designated with restrictions. If the total amount of donations made during a tax year exceeds EUR 100,00 and does not exceed 5% of the taxable income, the income tax is reduced by 20% of the value of the donations.
Foreign taxpayers who meet the requirements to be considered non-Greek tax residents are entitled to the same tax benefits as Greek tax residents, provided that they continue to reside in an EU or EEA nation and generate at least 90% of their global income in Greece, (ii) or can demonstrate that their taxable income is so low that they would be eligible for tax relief in their home country.
You can use online websites to calculate your net salary and how much percentage each section deducts as tax. One of these is ‘Aftertax.gr’.
How To Read A Greek Payslip?
Different companies have different styles of payslips. The basic information remains the same in all of these. Just the format is changed, along with a few minor details. They all mention your salary, tax deducted, social security contributions, and personal details.
Personal Information
- Employee Number
- Employee Name
- Your date of birth
- Class of tax to which you belong
- Security number
- The date on which you started working
- Any leaves you had taken
- Tax ID number
- Amount of vacation days you took
- Paid vacation days taken
Salary Information
i) Earnings
- Total salary
- Any cash benefits
- Net salary
- Employer contribution to a saving plan (if any)
- Holiday income
- Tax-free benefits
- Monthly salary
ii) Taxes
- Income tax: the amount of tax you pay per monthly income based on your tax class
- Church tax: This is not for every employee
- Total tax reduction
iii) Social Security Contribution
- Social security insurance
- Contribution to health insurance
- Pension insurance
- Total social security reduction
Summary Of Year-To-Date Income
On the bottom left corner of your payslip, you will find the total reductions made to your salary so far in the year. This includes the amount after all taxes, social security, and earning reductions.
Conclusion
Greek terms alluding to the comprehensive tax and social security system are frequently found on payslips in Greece. As mentioned above, not each employer has the exact details and format in your given payslip, so don’t worry if something shows up that you haven’t seen before; you should talk to your supervisor or any department of this case to help you understand this matter.