In a video posted on social media, Mitsotakis said the new €500 monthly limit would apply to employees working throughout the year, amounting to a maximum annual exemption of €6,000.
For seasonal employees, the exemption will instead be calculated on an annual basis.
‘If someone works for six months a year, the tax-free amount will rise to €1,000 [for each month worked], practically more than tripling,’ Mitsotakis said.
An employee working for six months will therefore be entitled to a tax exemption of up to €1,000 in tips for each month of employment, compared with the previous monthly limit of €300.
‘The new provision will be voted on promptly but will apply retroactively from 1 January 2026. It therefore covers the entire summer season,’ the prime minister said.
Until 2024, tips paid electronically through point-of-sale terminals were taxed in full.
Law 5162/2024 introduced, from 1 November 2024:
- an income tax exemption for voluntary tips of up to €300 a month received by employees from customers
- an exemption from social security contributions for tips, regardless of their value.
The new provision is expected to be submitted to parliament for approval in September and will apply retroactively throughout the 2026 tax year.
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