June 12, 2024

Athens News

News in English from Greece

2024 is a year of shocks both in wages and pensions, and in taxation


2024 is a year of upheaval both in the field of wages and pensions and in the field of taxation. Institutionalized changes will lead to higher wages and pensions, higher taxes for freelancers who declare alarmingly low incomes, lower business taxes and total tax control using electronic cross-checks and artificial intelligence.

For the first time in 13 years, salaries of public sector workers will increase by an average of 6.5%

Private sector workers earning the minimum wage will receive double the benefit in 2024 as their pay will increase after the three-year qualifying period is eliminated, provided they have worked for up to 3 years by February 14, 2012.

At the same time, a new increase in the minimum wage of 5-6% is expected in April, as a result of which the minimum wage will increase from 780 euros to 820 euros.

In addition, the government intends to set the minimum salary at 950 euros and the average salary at 1,500 euros at the end of the four-year period. Those who were hired during the period from 2/15/2012 to 12/31/2023 will lose out from the “thawing” of wages frozen for 3 years.

What changes in wages and pensions will 2024 bring?

  • Three-year freeze on salary increases will be activated from 1/1/2024
  • About 100,000 private sector workers will receive a 10% pay rise in 2024

Winners: ppreliminary work experience up to 3 three-year periods by 02/14/2012

Losers: Hired from 02/15/2012 to 12/31/2023 (1st promotion: 01/1/2027)

Examples:

  • Minimum wage employee hired on 5/1/2009. Previous work experience: 2 years and 9 months. Completion of 3 years of experience – 18/3/2024. Three-year supplement (10%): +€78
  • Hired on 1/5/2006, paid at the minimum rate. Previous work experience: 5 years and 9 months. Completion of 2 years of experience: 18/3/2024. Premium for 3 years (20%): +156€
  • Hired after 14/2/2012. End of 1st three-year period: 1/1/2027. Minimum wage: new increase of 5-6%. From €780 (gross) today -> €820 (gross) in April.

Public sector salary increases: average annual allowance €1,476 (net)

Pension of all funds:

  • Increase: 3%
  • Cancellation of the 30 percent pension “fine” for working pensioners.

Plan for the “cancellation” of the solidarity contribution of pensioners.

What will change in 2024 in taxes, contributions and benefits

  1. Increase in tax-free benefit +1,000 euros for families with children. Benefit: €90 – €220 /year
  2. ENFIA: – 10% on real estate insured against natural disasters
  3. Business tax reduction by 50%: (325€ from 650€)
  4. Insurance premiums: increase of 3.9% for 1.2 million self-employed and professionals.



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