Greek government to cut employer social security contributions by 0.5% from 2027

The Greek government plans to reduce employer social security contributions by half a percentage point, effective 1 January 2027. The measure continues a policy track that began in 2019 to lower non‑wage labour costs and boost the competitiveness of the Greek economy. Officials say a larger cut of up to one full percentage point could be considered later if fiscal space allows.

According to Eurostat data, Greece’s non‑wage labour cost now accounts for about 20.2 % of total labour costs, placing the country 14th out of 27 EU members—well below the EU average and far lower than France (32.3 %), Sweden (31.7 %) and Slovakia (28.6 %). The ongoing reductions have already lowered business expenses and improved Greece’s position in the European cost‑competitiveness rankings, though analysts question how much the cuts will translate into real‑world economic growth.