Greece to cut social security contributions earlier than planned

The Greek government is set to move forward with another reduction in social security contributions as early as 2026, one year ahead of schedule. The cut—originally planned for 2027—will lower contributions by 0.5 percentage points, with officials hinting at the possibility of a larger adjustment.

According to To Vima, the move is part of a broader strategy to boost business competitiveness and reduce non-wage labor costs for employers. With this new cut, Greece will have reduced total social security contributions by 5.9% since 2019, bringing the rate down to 35.66%, more in line with the EU average.

The measure also fulfills a remaining part of the government's earlier pledge to reduce non-wage costs by five percentage points between 2020 and 2023. The Ministry of Labor highlights that this reduction ranks among the largest in the EU and has already supported the creation of 500,000 new jobs.

Additionally, changes introduced in March 2025 redefined how contributions are calculated for overtime, night shifts, and holiday work. Instead of using higher, surcharge-inclusive rates, contributions are now based on the standard eight-hour wage, effectively reducing the contribution base for both employers and workers.