Greece faces criticism over pension solidarity tax and tax bracket issues

Criticism has been raised regarding ongoing tax burdens in Greece, specifically focusing on two persistent issues following the country's exit from memorandum programs: the Pensioners' Solidarity Contribution (EAS) and the lack of tax bracket indexation.

Due to the absence of tax bracket adjustments, citizens face higher tax rates despite nominal income increases. When inflation outpaces wage growth, individuals experience a decrease in real disposable income while simultaneously being pushed into higher tax brackets.

The Pensioners' Solidarity Contribution (EAS) is highlighted as a significant burden. This secondary tax applies to pensioners with total main pensions exceeding 1,468 euros and supplementary pensions over 300 euros. Critics argue this creates a double taxation effect, as these individuals already pay standard income tax on inflation-adjusted earnings while receiving pension increases that often fall below the rate of inflation.