Greece to reduce unemployment insurance contributions in 2027

A draft law from the Ministry of Finance proposes a reduction in unemployment insurance contributions in Greece, effective April 1, 2027. Under the proposed amendment to Law 4997/2022, the total unemployment contribution will decrease from 2.40% to 1.90% of earnings.

The change specifically affects the distribution of the contribution between employers and employees. The employee's share is set to drop from 1.20% to 0.70%, while the employer's contribution remains unchanged at 1.20%. This 0.50 percentage point reduction for employees is expected to result in a slight increase in net wages. For example, on monthly insurance earnings of 1,000 euros, the reduction equates to approximately 5 euros per month, or 60 euros annually, before tax implications.

Other provisions regarding contributions for the Public Employment Service (DYPA) branches and accounts remain in effect. These include the employer contribution of 0.15% for the Employer Insolvency Protection Account, the 0.16% contribution for the Unified Account for the Implementation of Social Policies, and the 0.35% employee contribution for the former Labor Training Organization.