Gross to net Payroll Engine Greece

Looking for a fast and precise solution to simplify your payroll process in Greece? Our Gross to Net Payroll Engine Greece is designed to deliver accurate, real-time payroll and tax calculations tailored specifically to Greek labor laws and tax regulations. Whether handling complex payroll taxes or adapting to regulatory updates, this platform ensures seamless, reliable results every time.

Powered by a robust and unified system, our Payroll Tax Engine Greece offers unmatched accuracy and security, processing payroll data while fully respecting data privacy standards. No sensitive employee information is compromised, guaranteeing compliance with GDPR and local data protection laws.

Experience how our Payroll Calculator Greece and Salary Calculator Greece streamline your payroll operations with ease. Request a demo today and discover why businesses across Greece trust our Tax Engine Greece to optimize their payroll workflows efficiently.

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Gross to net payroll tax engine for Greece

Looking for the latest payroll tax updates in Greece? Powered by our Payroll Tax Engine Greece, this cloud-based platform delivers real-time, automatic updates tailored to Greek payroll regulations.

• Continue using your current HCM, ERP, or workforce software without switching to a new payroll system.
• Partner with a provider offering a seamless, plug-and-play solution designed exclusively for payroll tax updates in Greece.

Plus, with our Gross to Net Engine Greece, you benefit from precise, compliant calculations that align with the complexities of Greek labor laws, delivered instantly and securely.

Solutions

1. HCM/ERP/WFM Systems: Our solution integrates effortlessly with all major HCM, ERP, time-tracking, payroll, and attendance systems commonly used in Greece, enabling businesses to maintain their current infrastructure without any disruption.
2. System Integrators: Elevate your platforms with advanced cross-border payroll functionalities, allowing you to deliver customized, seamless payroll solutions tailored specifically for the Greek market and beyond.
3. Enterprises: Streamline payroll management with our unified platform, saving time and improving accuracy through tools such as the Payroll Calculator Greece and Salary Calculator Greece.
4. SMEs: Our platform scales with your business, providing real-time, accurate payroll processing designed for companies of all sizes across Greece.
5. Service Providers: Deliver exceptional value by leveraging our efficient payroll system, trusted by leading organizations throughout Greece and internationally.

How It Works

Input

• Employee Data: Our solution collects all essential employee information, including salary details, benefits, and personal data necessary for accurate payroll processing in Greece.
• Leave Management: Efficiently tracks and manages employee absences, vacation days, and other time-off requests to ensure proper payroll adjustments.
• Time & Attendance: Monitors working hours, attendance, and overtime to guarantee precise payroll calculations in line with Greek labor standards.

G2N Nova Process

• Country-Specific Filing: Seamlessly connects with Greek statutory authorities to handle accurate tax filings and social security reports, fully compliant with local laws and regulations.
• Regulatory Compliance: Ensures ongoing adherence to Greece’s evolving payroll legislation, supported by a dedicated in-house compliance team.
• Global Payroll Engine – Gross to Net Calculation: Rapidly computes gross-to-net salaries for employees in real time, ensuring correct salary payments and mandatory deductions.

Output

• General Ledger Integration: Generates comprehensive accounting entries to streamline financial management and reconciliation processes.
• Cash Flow Reporting: Provides detailed reports to support treasury and cash flow management functions.
• Bank Transfers: Produces bank-ready files for seamless payroll disbursements.
• Payslips: Delivers clear, transparent pay statements to employees, outlining taxes, deductions, and net salary.

Designed with flexibility, scalability, and full compliance in mind, this platform offers a secure, simplified payroll process tailored for Greece and beyond. It integrates smoothly with existing systems, providing businesses and employees with a transparent, real-time payroll experience.

Features of G2N Payroll Engine Greece

Benefits

Streamlined Payroll Processing

Experience fast, accurate, and efficient payroll processing fully compliant with Greek tax and labor laws, powered by our advanced Gross to Net Engine Greece.

Effortless Integrations

Seamlessly connect with Greek payroll and HR systems, minimizing errors and ensuring smooth data exchange with our Payroll Tax Engine Greece.

Automated Data Handling

Save time and reduce manual data entry through automation, significantly lowering the risk of human error.

Multi-Country Payroll Capabilities

Easily manage payroll across multiple countries while ensuring full compliance with each country’s local regulations.

Secure and Compliant Operations

Utilize our solution to achieve secure, dependable payroll processing for both domestic and international businesses, all designed with the Greek market’s needs at the core.

Everything you need to know about Gross to Net Calculation in Greece

Calculating the gross-to-net salary in Greece requires careful consideration of various mandatory social security contributions and legal regulations. Below is a detailed overview of the key components, contribution rates, and procedural steps involved.

Social Security Contributions Breakdown (EFKA)

The social security system in Greece is managed by EFKA (Unified Social Security Fund). Both employees and employers contribute mandatory amounts covering pensions, health insurance, unemployment, and other social programs.

Understanding Main Pension Contributions

For private-sector employees insured under EFKA, the total contribution rate dedicated to the main pension stands at 20%. This amount is divided between:

• Employee: 6.67% of gross salary
• Employer: 13.33% of gross salary

What Earnings Are Subject to Contributions?

Contributions apply to nearly all types of employee compensation with some important exceptions:

• Exempt Earnings: Extraordinary social benefits such as allowances for marriage, childbirth, death, or severe disability are excluded.
• Contribution Cap: Social security contributions are capped monthly at €7,572.62 from January 1, 2025. Earnings above this threshold are not subject to further contributions.
• Recent Exemptions (Starting March 6, 2025): Certain types of pay increases are exempt, including night shift premiums, overtime payments, and additional pay for work on Sundays and holidays for full-time employees. These exemptions apply to both employer and employee contributions and are detailed in Article 41 of Law 5184/2025.

Treatment of Holiday Bonuses and Allowances

Bonuses like Christmas and Easter gifts, along with annual holiday allowances, are fully subject to social security contributions. However, they are treated independently with respect to the maximum insurable earnings cap.

Employer’s Responsibilities: Withholding and Payment

Employers must:

• Deduct the employee’s contribution share directly from their gross salary.
• Combine their own contributions with the withheld amount and submit the total payment to EFKA within the legally mandated deadlines.
• Pay attention to penalties, as late payments will incur interest charges according to the applicable laws.

Reporting Requirements and Declarations

• Employers declare social security contributions through the Detailed Periodic Declaration (DPD) every month.
• Certain special categories of workers (e.g., exclusive nurses, tour guides, dockworkers, resin collectors) may be exempt from submitting the DPD.
• The DPD must be filed by the last day of the month following the month of employment to ensure compliance and avoid fines.

Income Tax Tables

Greece applies a progressive income tax system where the tax rate increases as income rises. The rates differ depending on the source of income, with separate scales for employment income, pensions, business profits, and rental income.

Employment Income, Pensions, and Business Profits

For employment income, pensions, and business profits, Greece uses a tiered tax scale that progressively taxes higher income brackets at increased rates. The rates start low for the first portion of income and rise for subsequent brackets, encouraging fairness and equity in taxation. The current tax brackets are as follows:

This structure ensures that individuals with higher earnings contribute a larger share of their income in taxes, aligning with progressive tax principles.

Rental Income Tax Scale

Rental income in Greece is subject to a separate tax scale, reflecting the government’s approach to property income. The brackets and rates are designed to tax higher rental incomes more heavily:

This transparent tax framework allows taxpayers in Greece to anticipate their tax liabilities based on income type and level, facilitating better financial planning and compliance.

Tax Reduction Based on Children

In Greece, taxpayers benefit from reductions on their income tax liability depending largely on their family situation and specific spending patterns. These reductions are designed to ease the financial burden, especially for those supporting dependent children.

Family-Based Tax Reductions

The Greek tax system recognizes the financial responsibilities associated with raising children. Therefore, individuals with dependents receive increased tax reductions compared to those without. The basic tax reduction for a single taxpayer or a couple without children is set at €777 annually. This amount grows with each additional dependent child, reflecting the increasing cost of living and care.

Here’s a breakdown of the tax reductions depending on the number of dependent children:

• No children: A standard reduction of €777 is granted.
• One dependent child: The reduction increases to €810.
• Two dependent children: The allowance rises further to €900.
• Three dependent children: Taxpayers can reduce their tax by €1,120.
• Four dependent children: The tax reduction reaches €1,340.
• Additional children: For every child beyond the fourth, the tax reduction increases by €220 per child, providing extra relief to larger families.

Income Limitations and Gradual Reduction

For those earning up to €12,000, the full tax reduction is available. However, as income surpasses this threshold, the reduction decreases incrementally—by €20 for every additional €1,000 earned above €12,000—phasing out gradually as income rises.

Electronic Payment Requirement for Expense Deductions

Since January 2020, taxpayers must ensure that at least 30% of their income from salaries, pensions, or business activities is spent through electronic payments on qualifying goods and services to claim the maximum deductions. This requirement encourages transparency and helps curb tax evasion. The maximum deductible amount of such expenses is capped at €20,000 per year.

In special cases where expenses like income tax payments, property tax (ENFIA), loan repayments, and rent exceed 60% of actual income, the required electronic payment threshold is lowered to 20%.

Eligible expenses include a wide range of daily living costs such as accommodation, food, clothing, vehicle-related expenses, telecommunications, and education. These expenditures must be incurred within Greece or any European Union member country to qualify.

Other Allowable Personal Deductions

Beyond family-based reductions, taxpayers can also deduct mandatory social security contributions from their taxable income. Additionally, donations to approved charities and organizations provide further tax relief. Donations exceeding €100 annually can reduce tax liability by 20% of the donated amount, up to a maximum of 5% of the taxpayer’s taxable income.

Foreign residents who maintain residency in an EU or EEA country and meet certain income thresholds may also benefit from these tax relief measures, aligning Greece’s tax policies with broader European standards.

Employee Types

Our Gross to Net (G2N) payroll engine is designed to handle a diverse range of employee scenarios, ensuring accurate payroll calculations regardless of individual circumstances. The system supports, but is not limited to, the following employee categories: