The high cost of employer contributions stops investments in Greece

According to Economistas.gr, for payable salaries of more than 1,500 euros a month, a Greek company has to pay double and more than twice the amount of wages received by employees due to high taxes and disproportionately high insurance contributions!

It is characteristic that a net salary of € 1,500 in Greece costs € 2,727 a month, while in Cyprus the cost is € 1,814, or 33.5% lower. In order to be able to offer a high salary of € 3,000 per month to a staff member or scientist, the company in Greece has to pay a total of 7,148 euros while in Cyprus the total cost for the business is just 4,237 euros (-40%) and in Bulgaria 3,768 euros (-47%).

In short, the state gets nearly 60% of the money a company pays to its executives, making it prohibitive to create jobs for high-level executive staff. A characteristic of the major competitive disadvantage that is borne by the Greek business is that in order to create a job with a net remuneration of 4,000 euros per month, the company must pay to the Greek state 9,430 euros with the same money a company in Cyprus or Bulgaria to hire two executives for a salary of 4,000 euros each!

But even at the very low wages of 500 euros the picture of Greece is problematic. In Greece, for a salary of 500 euros a company is charged with 744 euros, ie only 67% of the money paid by the company reaches the worker's pocket. For the same salary in Cyprus the total employer's cost is 604 euros, ie 83% of the money goes to the employee.