Tuesday , August 16 2022
Home / News / Economy / Additional austerity €5.4bn, tax & contributions hikes to swallow 60% of employees’ wages

Additional austerity €5.4bn, tax & contributions hikes to swallow 60% of employees’ wages

Almost half of employee’s wages goes for taxes and contributions, while the upcoming tax and social security hikes will lead to further losses. According to daily TA NEA the new austerity measures currently on the negotiations table between Greek government and the lenders will end into swallowing 6 out of 10 euro in wage and salary.

Top on the agenda of Greece-lenders is the new taxation – the 6th or 7th since 2010 – and the pensions reform. According to Greek media, even those with annual income of 9.100 euro will pay more taxes.

TA NEA estimates, that “If the Greek government proposal to raise social contributions is accepted by the lenders, employees will have to pay 60^ of their salary for taxes and social contributions.”

Government spokeswoman Olga Gerovasili admitted on Tuesday that the new measures will be 3% of GDP.

1.8 billion euro (1%) will come from pensions reform, 1.8 billion euro (1%) from taxes and 1.8 billion (1%) euro from indirect taxes. Total 5.4 billion euro until 2018. And this is extra for the Greek taxpayers and citizens.

There are a lot of scenarios about the “indirect taxes” to burden property tax (ENFIA), bank transactions, diesel, mobile phones, cable TV.

According to latest information from the Government-Lenders negotiations: lump sum will be cut by 25%, supplementary pensions -10% and a nice -20% to new pensions.

The lenders are expected to return to Athens on April 2nd, the Greek side expects the review to conclude by April 15th 2016.

According to OECD report of 2014: a Greek employee with two children had to pay 43.4% of his salary in taxes and contributions. On the list of OECD with the highest social contributions Greece was on 6th position after Slovenia, Germany, Hungary, Austria and Poland.

We should note here that due to the bailouts and the austerity packages, the more the Greeks pay in social contributions for health services and pensions, the less they get.

  Additional austerity 2.7 billion euro per year?

Get-me-outta-here-gif

    Get me out of here NOW!

PS and to think that part-time contracts are high on the labor market, with employees earning 300-500 euro in the average.

Check Also

Inflation in Greece at 11.6% in July, with natural gas to strike +178.9%

Inflation in Greece slowed to 11.6% in July compared to 12.1% in June 2022. However, …

3 comments

  1. I am puzzled why Greece does not introduce parallel surrogate currency. For instance, food stamps which can be reimbursed at 80%.

    The Eurozone will catch a total stroke when this happens.

    • keeptalkinggreece

      come on, time you should forget your Soviet time

    • I am puzzled why you put your garbage here, instead of outside in a waste bin. Or do you not have rubbish collection yet, in Latvia? I realise that it is a fairly advanced society that knows how to collect its garbage.