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PEO & Employer of Record (EOR) in GrGreece.

Population

10,482,487

Languages

1.

Greek

Country Capital

Athens

Currency

Euro (€) (EUR)

G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Greece. Your candidate is hired via G-P’ Greece PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

Our solution enables customers to run payroll in Greece while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Greece.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.

Greece is located in southeastern Europe on the Balkan Peninsula, which juts into the Mediterranean Sea. The country includes 227 inhabited islands, and is 80% covered by mountains and hills. Of the population of 11 million, 3 million live in Athens.

When negotiating terms of an employment contract and offer letter with an employee in Greece, it may be useful to keep the following in mind:

Employment Contracts in Greece

Prefer and common employment contract: open-ended employment – such a contract may be terminated only by legal procedures followed by either party, resignation, dismissal, or retirement.

In order to best assist the customer in our hiring process, we have 2 types of employment contract drafts (i) Managers, and (ii) Non-managers.

If a Part-time contract is required our team will review and draft as needed, for both managers and non-managers.

Fixed-term employment contracts are not common in Greece due to the probationary period current duration (maximum of 12 months).  Such a contract may be terminated at a certain pre-defined time, although legal procedures still apply, and the employee may resign.

It is best practice, although not legally required, to put a written employment contract in place in Greece, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Greece should always state the salary and any compensation amounts in Euro rather than a foreign currency.

Working Hours in Greece

The Greek workweek is 40 hours with 5 days and 8-hour each day. It is important to know that usually managerial position working hours have a different and more flexible treatment.

Holidays in Greece

Greece celebrates 12 national holidays, with 4 non-fixed dates and 8 fixed dates.

  • New Year’s Day
  • Epiphany
  • Clean Monday
  • Independence War
  • Good Friday
  • Easter Monday
  • Labor Day – If falls on a weekend this is passed to the next working day as a common practice.
  • Holy Spirit Monday
  • Assumption of the Holy Virgin
  • Ochi Day
  • Christmas Day
  • Day After Christmas (Synaxis of the mother of God)

Vacation Days in Greece

During the first year of employment, the employee accrues prorated vacation of 24 days for a 6-day workweek or 20 days for a 5-day workweek.

After one year of employment, the employee is entitled on January 1st to 25 days of annual leave for a 6-day workweek or 21 days for a 5-day workweek.

After two years and forward of employment, the employee is entitled on January 1st to 22 days of annual leave for a 26-day workweek or 25 days for a 5-day workweek.

After 12 years of employment or 10 years of working for the same employer, the employee is entitled on January 1st to 30 days of annual leave for a 6-day workweek or 25 days for a 5-day workweek.

After 25 years of employment, the employee receives 31 days for a 6-day workweek or 26 days for a 5-day workweek.

The company can increase the annual entitlement.

Greece Sick Leave

The employer pays 50% of the employee’s normal pay in the first up to 3 days of absence.

After 3 days, the Social Insurance Institute (EFKA) will pay a sickness allowance to the employee.

The professional needs to declare/request the sick leave to EFKA in a separate process so that EFKA can run the payment accordingly.

Maternity/Paternity Leave in Greece

A mother is protected from contract termination for the duration of her pregnancy, for a time period of 18 months following labor, and for absences due to sickness resulting from pregnancy or labor.

Maternity leave (pregnancy and post-partum) is 17 weeks in total, being 8 weeks before and 9 weeks after birth. The first month is paid partially by the employer after deducting IKA but it will always depend on the annual salary and remuneration the professional receives.

Mothers have the right to reduce working hours (by one hour per day for 2.5 years, or by two hours for one year and one hour for six months, or the equivalent).

The father is entitled to two days’ paid leave on the child’s birth.

Fathers have the right to reduce working hours (by one hour per day for 2.5 years, or by two hours for one year and one hour for six months, or the equivalent) when the mother is self-employed, or she does not exercise her right.

Health Insurance in Greece

Employees who have worked at least 3 months within the past 15 months are generally eligible for free health and dental care through social security.

Greece Supplementary Benefits

Some companies provide meal allowances, cars, and health insurance.

Due to mandatory remote working regulations, employees should receive a monthly expense of around 28 euros per month to cover working tools, internet/phone, and house usage.

Bonuses

Annual Gross Salary needs are paid in 14,0625 installments in Greece, it is important to have this in mind while agreeing on an annual salary with the candidate.

The agreed annual gross salary should include the following mandatory extra payment.

  • Christmas bonus of 1 month’s wages or prorated amount since the start date.
    • Paid in Mid-December
  • Easter bonus of 1/2 month’s wages or prorated amount since the start date.
    • Paid in Mid-April
  • Holiday bonus of 1/2 month’s wages or prorated amount since the start date.
    • Paid in Mid-July

This information is provided as general accepted information and is not intended as advisory services.

Termination/Severance in Greece

Employers must notify employees in writing before terminating an open-ended contract if the probationary period is over.

The severance pay scale for employees is as follows:

  • 1 full year up to 4 years: 2 gross (monthly) salaries.
  • 4-6 years: three gross (monthly) salaries.
  • 6-8: four gross (monthly) salaries.
  • 8-10 years: five gross (monthly) salaries

Paying Taxes in Greece

Employers contribute 22.54% of payroll to social security (EKFA), and employees pay 14.12% of their wages.

Why G-P

Establishing a branch office or subsidiary in Greece to engage a small team is time-consuming, expensive and complex. Greek labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Greece. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Greece PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your business.

If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Greece, please contact us.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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