Laws and Policies in Greece

Employment Contracts in Greece

Employment relationships are governed by the Greek Labour Code and a series of employment laws, plus EU regulations.

Contract Requirements

Employment contracts should be in writing and must include at least:

• Employer and employee details
• Job title and main duties
• Place of work (on-site / hybrid / remote)
• Working hours and schedule
• Gross salary and payment frequency
• Applicable collective labor agreement (if any)
• Probation period (if used)
• Annual leave entitlement
• Termination notice terms

A written statement of key terms must be provided to the employee within a legally defined timeframe from the start date.

Types of Contracts

• Indefinite-term contracts (most common)
• Fixed-term contracts (allowed under certain conditions)
• Part-time contracts
• Teleworking/remote work agreements

Probation Period

• Commonly up to 6 months for indefinite-term contracts (must be clearly stated).

Your EOR ensures contracts follow Greek law and align with market practice.

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Working Hours in Greece

• Standard workweek: 40 hours
• Most common pattern: 8 hours/day, 5 days/week (Monday–Friday).

Overtime & Extra Work

Greece distinguishes between “overwork” and “overtime”:

• Overwork: Extra hours up to the legal maximum daily/weekly limits, paid at a premium (above base rate).
• Overtime: Hours beyond legal limits, paid with a higher premium.

Typical rules (exact rates can change by law / collective agreements):

• Overwork: ~20% above normal hourly wage.
• Overtime: 40–60%+ above normal wage, depending on hours and circumstances.

Rest Periods

• Minimum 11 consecutive hours of rest in every 24-hour period.
• At least one day off per week (often Sunday).

Certain sectors (tourism, hospitality, shipping) may have special arrangements.

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Employee Leave in Greece

Annual Leave

Annual leave depends on length of service:

• First year: typically 20 working days (for a 5-day workweek).
• Increases gradually with seniority (e.g., up to 22–25 days or more, depending on years of service and collective agreements).

Sick Leave

• Employees are entitled to sick leave with medical certification.
• For short-term illness, the employer covers part of the pay; social insurance (EFKA) may cover additional periods for longer illnesses.

Maternity Leave

• Standard 17 weeks of maternity leave:
  • Usually 8 weeks before birth + 9 weeks after (or similar split),
  • Plus additional parental protection measures.
• Benefits are paid through a combination of social insurance and, in some cases, employer contributions.

📌 Paternity & Parental Leave

• Paternity leave (a number of paid days after the birth) is available.
• Additional parental leave allows either parent to take time off with varying levels of income support from the state.

Public Holidays

Greece has multiple paid public holidays, including:

• New Year’s Day
• Epiphany
• Independence Day (25 March)
• Easter-related days
• Labour Day (1 May)
• Assumption Day
• Ochi Day (28 October)
• Christmas and others

Employees who work on public holidays are generally entitled to extra compensation or time off.

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Employee Benefits in Greece

Greece has a comprehensive social security system with mandatory employer and employee contributions.

Statutory Social Security (EFKA)

Social insurance contributions cover:

• Pension
• Health care
• Unemployment
• Sickness and maternity
• Work-related injury & disability

Contributions are calculated as a percentage of gross salary and shared between employer and employee (rates vary by fund and category but are significant and must be handled carefully).

Mandatory & Typical Benefits

• Social insurance coverage via EFKA
• Paid annual leave and public holidays
• Sick, maternity, paternity, and parental leave rights
• Severance pay in case of certain terminations

Common Extra Benefits

To compete for talent, especially in tech and professional services, employers often add:

• Private medical insurance (top-up)
• Meal vouchers or lunch subsidy
• Transportation or remote-work allowance
• 13th salary / Christmas bonus (and sometimes Easter/holiday bonuses, where applicable)
• Training and education support
• Flexible working hours / remote work

Your EOR helps structure a benefits package that is both legally compliant and attractive in the Greek market.

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Payroll & Tax in Greece

Payroll Currency

• Salaries are paid in Euro (EUR).

Payroll Frequency

• Most commonly monthly (12 payments per year).
• In some cases, 14-payment structures (with extra holiday/Christmas/Easter payments) may apply per law or tradition.

Personal Income Tax

Greece uses a progressive personal income tax system with increasing tax bands based on annual income.

Employers must:

• Withhold personal income tax on salaries (PAYE).
• Withhold employee social security contributions.
• Remit both tax and contributions to the Greek authorities on time.

Employer Payroll Duties

• Register as employer with tax and social security authorities (EOR does this on your behalf).
• Calculate and remit:
  • PAYE income tax
  • Employee and employer social security contributions
• File required monthly and annual payroll reports.

An EOR in Greece manages all payroll operations, helping you avoid errors and penalties.

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Employment Laws & Compliance in Greece

Key frameworks include:

• Greek Labour Code and subsequent employment law reforms
• Social security laws (EFKA regulations)
• Health & safety legislation
• EU labour and anti-discrimination directives

Termination Rules

Termination in Greece is regulated and must follow specific procedures.

Notice & Compensation:

• Notice periods and severance depend on:
  • Type of contract (indefinite vs fixed-term)
  • Length of service
• For indefinite-term employees, termination usually requires:
  • Written notice
  • Payment of statutory severance (if terminated without serious misconduct)

Severance Pay:

• Calculated based on years of service and last regular salary.
• For employees with long tenure, severance can be significant.

Fixed-term contracts:

• Early termination before the agreed end date often requires compensation (remaining term) unless there is serious cause.

Non-Discrimination & Equality

Employers may not discriminate based on:

• Gender
• Age
• Ethnic origin
• Religion or belief
• Disability
• Sexual orientation

Data protection (including employee data) is subject to GDPR and Greek data protection laws.