The Greek government is introducing changes to the taxation framework for employee tips, increasing the tax-free threshold for voluntary gratuities received by employees from customers.
Under the new regulation, the current tax-free monthly limit of €300 will be replaced by an annual tax-free threshold of €6,000, which corresponds to an average of approximately €500 per month for employees who work throughout the year. In addition, the calculation method will change, as the threshold will now be assessed on an annual rather than a monthly basis.
The new provision is expected to be submitted to Parliament in September and, according to the Ministry of National Economy and Finance, will apply retroactively to the entire 2026 tax year.
What Is Changing?
Until now, employees could receive tax-free tips of up to €300 per month.
Under the new framework:
- the tax-free threshold increases to €6,000 per year;
- the limit will be calculated on an annual basis, rather than monthly;
- seasonal workers will benefit from greater flexibility, as the total amount of tips received during the year will be taken into account.
In practice, an employee working throughout the year may receive an average of approximately €500 in tax-free tips per month, provided that the total annual amount does not exceed €6,000.
What Does This Mean for Seasonal Employees?
The new calculation method primarily benefits seasonal workers, particularly those employed in hospitality, tourism and food service.
For example, an employee working only six months during the summer season may receive up to €1,000 in tips per month without losing the tax exemption, provided that the total amount of tips received during the year does not exceed €6,000.
This approach better reflects the realities of seasonal employment, where a significant portion of annual gratuities is typically earned within a limited period.
What Applied Until Now?
Until 2024, tips paid electronically through POS terminals were fully subject to income tax.
From 1 November 2024, under Law 5162/2024, Greece introduced for the first time:
- an income tax exemption for tips of up to €300 per month; and
- a full exemption from social security contributions on tips, regardless of the amount received.
The new regulation increases the tax-free threshold and shifts the calculation to an annual basis, while maintaining the exemption from social security contributions.
When Will the New Rules Take Effect?
Η νέα ρύθμιση θα κατατεθεί προς ψήφιση τον Σεπτέμβριο και θα έχει αναδρομική ισχύ για ολόκληρο το φορολογικό έτος 2026.
