Greece wage increases face tax inflation risks by 2027

Concerns are rising regarding the impact of tax inflation on wage increases in Greece by 2027. Due to the expected return of tax inflation, a gross salary increase of 50 euros may result in a net gain of only 36 to 38 euros for the employee. While the employer's cost increases to over 57 euros, the worker's actual take-home pay is significantly reduced by higher tax withholdings.

This discrepancy has prompted discussions regarding alternative solutions, such as meal vouchers, which could allow the full cost to benefit the employee. For an employee earning a gross salary of 1,500 euros, a 3.33% increase could be largely offset by tax rates that may rise more sharply than the nominal wage increase itself.