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Hiring in Greece
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
While it is not legally required in all cases to have a written employment contract, it is best practice and highly recommended. In certain cases, such as part-time employment, a fixed-term agreement, or a teleworking arrangement, it is legally required to have a written contract in place. However, all employers are required to provide a written statement to employees of certain terms and conditions of employment. The employment contract should include details about the workplace, start date (and duration) of employment, job title and duties, compensation, hours of work, annual leave, other benefits, and termination requirements. An offer letter and employment contract in Greece should always state the salary and any compensation amounts in euros rather than another currency.
Working hours in Greece
The work week in Greece is 40 hours, spread across 5 days, each consisting of 8 hours. The work week, including additional work and overtime, may not exceed 48 hours. Managerial employees are generally exempt from working time rules.
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
- 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
Entitlement to annual leave in Greece depends on the employee’s length of service with an employer. During the first year of employment, employees accrue prorated vacation of 24 days for a 6-day workweek or 20 days for a 5-day workweek.
After 1 year of employment, employees are entitled to 25 days of annual leave for a 6-day workweek or 21 days for a 5-day workweek.
From the second year of employment onwards, employees are entitled to 26 days of annual leave for a 6-day workweek or 22 days for a 5-day workweek.
After 12 years of employment or 10 years of working for the same employer, employees are entitled to 30 days of annual leave for a 6-day workweek or 25 days for a 5-day workweek.
After 25 years of employment, employees receive 31 days for a 6-day workweek or 26 days for a 5-day workweek.
Greece sick leave
Employees in Greece are entitled to sick leave and the duration of leave depends on the length of service with the employer. According to these provisions, an employee who is absent from work due to sickness and who has been employed for at least 10 days is entitled to wages as follows:
- For the first year of employment, up to half a month’s salary.
- Up to 1 month’s pay for the following years.
After 3 sick days, employees are entitled to a sickness allowance by the National Social Security Fund (EFKA), and the total amount paid to the employee can be reduced by the allowance provided by EFKA.
Maternity and paternity leave in Greece
Expecting employees are entitled to 17 weeks of maternity leave in total: 8 weeks before the birth and 9 weeks after. The first month is paid partially by the employer after deductions related to the National Social Security Fund (IKA), contingent upon the annual salary and compensation of the employee.
After maternity leave, birthing parents are entitled to reduced working hours; 1 hour per day for 2.5 years, or 2 hours for 1 year, and 1 hour for 6 months.
Fathers are entitled to 14 days of paternity leave on the child’s birth. Employees who have been employed for at least 1 year are also eligible for unpaid parental leave of up to 4 months until the child reaches the age of 8.
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 employers provide meal allowances, cars, and health insurance.
According to remote working regulations, employees that work remotely must receive monthly expenses to cover working tools, internet/phone, and house usage.
Bonuses
Annual gross salary needs are paid in 14 installments in Greece, so it’s 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 payments:
- 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
Termination/severance in Greece
Employment may be subject to a probationary period in Greece, and the 1st year of employment is considered a probationary period by law. Employers may terminate the employment contract during the probationary period without notice or a severance payment.
After a probationary period, employers must have a valid reason to terminate the employment relationship. The required process to terminate employment depends on the reason for termination. In addition, employers must provide written notice to the employee as follows:
- For 1 year to 2 years of employment: 1 month’s notice
- For 2 years to 5 years of employment: 2 months’ notice
- For 5 years to 10 years of employment: 3 months’ notice
- For over 10 years of employment: 4 months’ notice
Statutory severance pay is also required in Greece and is based on the employee’s length of service with the employer:
- 1 to 4 years of service: 2 months’ salary
- 4 to 6 years of service: 3 months’ salary
- 6 to 8 years of service: 4 months’ salary
- 8 to 10 years of service: 5 months’ salary
- 10 years of service: 6 months’ salary
- 11 years of service: 7 months’ salary
- 12 years of service: 8 months’ salary
- 13 years of service: 9 months’ salary
- 14 years of service: 10 months’ salary
- 15 years of service: 11 months’ salary
- 16 years of service: 12 months’ salary
Paying taxes in Greece
Employers contribute 22.29% of payroll to social security, and employees pay 13.87% of their wages.
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