Greece Payroll Calculation Example - 2026

Input Parameters

• Annual Gross Income: €30,000
• Number of Children: 3
• Age Group: Above 30
• Number of Salaries: 14 (12 monthly + Christmas + Easter/vacation)

Contribution Rates (2026)

• Employee Contribution: 13.37%
• Employer Contribution: 21.79%
• Contribution Cap: €7,572.62/month

Tax Brackets (2026 - Standard)

• 0 - €10,000: 9%
• €10,001 - €20,000: 22%
• €20,001 - €30,000: 28%
• €30,001 - €40,000: 36%
• €40,001 - €60,000: 39%
• Over €60,000: 44%

Tax Benefits for 3 Children (2026)

1. Tax Discount

• Base discount: €1,340 (for 3 children)
• Reduction mechanism: Discount reduces by €20 for every €1,000 of income above €12,000
• For €25,989 annual income: €1,340 - floor((€25,989 - €12,000) / €1,000) × €20 = €1,340 - €260 = €1,080

2. Tax Rate Reductions

For families with 3 children, tax rates are reduced:

• €0-€10,000: 9% (unchanged)
• €10,001-€20,000: 9% (reduced from 20% - an 11 percentage point reduction)
• €20,001-€30,000: 20% (reduced from 26% - 6 percentage point reduction)

3. Calculation Method

The tax is calculated as:

1. Calculate tax on full taxable income using the reduced rates
2. Subtract the effective tax discount (after income-based reduction)
3. Final tax = Tax on full income (with reduced rates) - Effective discount

Step-by-Step Calculation

1. Monthly Gross Salary

€30,000 ÷ 14 = €2,142.86

2. Social Security Contributions (Monthly)

• Contribution Base: €2,142.86 (below cap of €7,572.62)
• Employee Contribution: €2,142.86 × 13.37% = €286.50
• Employer Contribution: €2,142.86 × 21.79% = €466.93

3. Monthly Taxable Income

€2,142.86 - €286.50 = €1,856.36

4. Annual Taxable Income

€1,856.36 × 14 = €25,989.00

5. Tax Discount Calculation (3 children)

Base discount: €1,340

Income above threshold: €25,989 - €12,000 = €13,989

Reduction: floor(€13,989 ÷ €1,000) × €20 = 13 × €20 = €260

Effective discount: €1,340 - €260 = €1,080

6. Income Tax Calculation

Step 6a: Calculate Tax on Full Income (€25,989) using Reduced Rates

• Bracket 1: €0 - €10,000 @ 9%

  • Taxable: €10,000
  • Tax: €10,000 × 9% = €900.00

• Bracket 2: €10,001 - €20,000 @ 9% (reduced from 20%)

  • Taxable: €20,000 - €10,000 = €10,000
  • Tax: €10,000 × 9% = €900.00

• Bracket 3: €20,001 - €25,989 @ 20% (reduced from 26%)

  • Taxable: €25,989 - €20,000 = €5,989
  • Tax: €5,989 × 20% = €1,197.80

Tax on Full Income: €900.00 + €900.00 + €1,197.80 = €2,997.80

Step 6b: Apply Tax Discount €2,997.80 - €1,080 = €1,917.80

Note: The calculation now uses tax discounts instead of tax-free thresholds, which is the correct method for Greece 2026.

7. Monthly Tax Withholding

€1,917.80 ÷ 14 = €136.99

8. Net Monthly Salary

€2,142.86 - €286.50 - €136.99 = €1,719.37

9. Total Employer Cost (Monthly)

€2,142.86 + €466.93 = €2,609.79

Summary Table

Key Findings

1. Tax brackets in seeder are correct (9%, 20%, 26%, 34%, 39%, 44%) - these are the 2026 standard rates

2. For families with children, rates are REDUCED - this is not just a discount

3. The calculation method is: Tax on full income (with reduced rates) - Effective tax discount

4. Tax discounts by children:

   • 0 children: €777
   • 1 child: €900
   • 2 children: €1,120
   • 3 children: €1,340
   • 4 children: €1,580
   • 5 children: €1,780
   • 6+ children: €1,780 + €220 per additional child
   • Discount reduces by €20 per €1,000 above €12,000

5. Rate reductions for 3 children:

   • €10,001-€20,000: 20% → 9% (11 point reduction)
   • €20,001-€30,000: 26% → 20% (6 point reduction)