Greece: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Greece.

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Overview

Situated amidst numerous islands and renowned as the cradle of democracy, Greece is a reservoir of abundant resources and historical significance. Sharing its borders with North Macedonia, Bulgaria, Albania, and Turkey, the nation has cultivated a thriving tourism sector, evident from the fact that thrice as many tourists visited the country as its population in 2022.

Noteworthy industries include tourism, shipping, mining, and petroleum, all underscored by a proficient workforce. Do your organization's expansion strategy require you to hire employees in Greece? Do you lack a physical entity in the country – a key requisite to hiring local talent? Neeyamo assists organizations worldwide with onboarding and managing employees in Greece -processing payroll, managing local compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Athens  

Currency

Euros (EUR) 

Official Language

Greek

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+30

Time Zone

Eastern European Time Zone (UTC+02:00) 

Global Payroll

Overview

Global Payroll Meaning:  

Global payroll is the management of the entire payroll function of an organization across all countries of operation. Organizations use a single solution capable of doing this from one central location.

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll. Neeyamos global payroll services ease the process for companies looking to outsource their global payroll requirements and aid them in maneuvering the tricky payroll system in Greece. Neeyamos payroll software provides the perfect solution for all your global payroll needs – for employees working in primary geographies, the long-tail region, remote or internationally located.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

The employee taxes in Greece are computed as follows: 

Pension Fund  13.33%
Health Care   4.30% 
Health in Benefit   0.25% 
Supplementary Insurance *(reduces to 3.00% 1/6/2022)   3.25%
Unemployment  1.20%
Professional Risk 1.00%
High Occupational Risk (industry specific)  1.41%

Employer Taxes

The employer taxes in Greece are computed as follows: 

  • Pension Fund - 6.67%  
  • Health Care - 2.15%   
  • Health in Benefit - 0.40%   
  • Supplementary Insurance *(reduces to 3.00% 1/6/2022) - 3.25%
  • Unemployment - 1.20%
  • High Occupational Risk (industry specific) - 2.20%

Payroll Cycle

Overview

Undoubtedly, payroll is a critical process for any organization. Pay cycle in Greece refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Frequency

The payroll cycle in Greece is generally monthly, and payments must be made on the same day of the month and no later than the last working day of the month. 

13th Month Cycle

In Greece, there are mandatory 13th and 14th salaries which include Easter (half a month's salary), vacation bonus (half month's salary), and Christmas (a full month's salary). The payment of the Christmas bonus must be made by 21 December. If the Christmas bonus is not paid on time, the employees should apply to the relevant Labor Inspectorate. The Labor Inspectorate of SEPE is responsible for the imposition of the relevant fines.

Global Work

Overview

An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a locally registered entity and a local bank account before making a job offer to an international hire.

An Employer of Record (EOR) service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits, ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employee in Greece for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements as they continue their global expansion.

Neeyamo strives to provide its customers with a seamless employee management experience and offers employer of record as well as payroll services with our Global Payroll Technology Stack.

HR Mandates and Practices

Minimum wage

Minimum wages have been revised in Greece from 1 January 2023. The minimum wages are increased as follows: 

  • For general workers, from  €31.85 to €34.84  per day and €713.00 to €780.00 per month
  • For technicians, and craftsmen, from €31.85 to €34.84 per day

Overtime

Overtime hours should not exceed 3 hours per day, 30 hours per month, or 200 hours per year. Employees receive an additional 50% (40%) for overtime work for each hour of overtime work and an additional 100% for holidays or work performed after 1 PM on Saturdays. 

Data Retention Policy

Employers must generally keep tax records for at least five years unless a longer period is specified in legislation.

Employers must maintain copies of social security returns for at least ten years.

Hiring and Onboarding Requirements

Hiring

The categories of characteristics (in terms of discrimination prohibition) regulated under the law are gender, racial or ethnic origin, religious or other beliefs, disability, age and sexual orientation, chronic illness, descent, family or social status, and gender identity or characteristics.  

Law No. 2643/1998 on the care for the employment of specific categories of persons and other provisions provides for the compulsory hire of specific categories of employees (people with a disability, people with many children, war victims, etc.) such that these hires amount to 8 percent of the total workforce of employers in the public and private sectors that employ over 50 employees, in accordance with the prescribed procedure. An exception applies to employers with a negative budget for the previous two years. 

Onboarding

Onboarding details for a local employee are as follows:

  • Candidate Full Name  
  • Address  
  • Email Address  
  • Copy of Identification  
  • Qualification details  
  • Previous Employment Details  
  • Copy of Passport  
  • Work Permit 

Probation

The first year of an indefinite contract is considered a probation period in Greece. 

Leave

Public Holidays

There are 12 public holidays.   

  • 1 January - New Year's Day
  • 6 January - Epiphany
  • 7 March - Orthodox Ash Monday
  • 25 March - Independence Day
  • Orthodox Good Friday
  • Orthodox Easter Sunday
  • Labour Day
  • Orthodox Whit Sunday
  • Orthodox Whit Monday
  • 15 August - Assumption Day
  • 28 October - Ochi Day
  • Christmas

Annual Leave

A minimum of 20 prorated days of paid time off per year are given to employees who work five days a week. Employees are entitled to an extra day of leave for every successive year of employment, up to a maximum of 22 days. Employees who have worked for the same employer for 10 years or who have worked for any firm for 12 years are eligible for 25 days of annual leave.

Employees who have worked for 25 years or more are eligible for 26 days of leave. Employees are also entitled to an annual leave bonus of up to half of their income, equal to the remuneration for the leave. Employees shall use at least half of the leave from May 1 until September 30. The entitled, per year, leave must be exhausted by the first quarter of the following year.

Sick Leave

When employees take sick time off, the company must compensate them for 13 days in the first year and 25 days after that. Both the employer and the EFKA pay for days. 

Maternity Leave

Maternity leave – (17 weeks) or 119 calendar days. (The employer only pays for the first month; the EFKA covers the remainder.)  

The first 56 days should be taken before the due date, and the last 63 days should be taken following the birth.  

In addition to the maternity leave, the labor employment office offers a 6-month leave that is compensated at the minimum wage (OAED). Mothers may agree with their employers to obtain an additional 3.5 months of paid leave rather than shorter daily working hours. 

Prenatal Examination Leave

Pregnant workers are to take paid leave during working hours in order to undergo prenatal examination if the tests are required to be performed during working hours.

Paternity Leave

After the birth of the child, fathers are entitled to 2 days of paid leave. 

Other Leave

Marriage leave: 5 working days 

Leave for children's school grading: For each child under the age of 16, four days of leave. One of the parents may take advantage of this type of leave. 

Bereavement leave: two business days for the death of a husband, wife, kid, father, or brother. 

Elections leave: The amount of time depends on how far the workplace is from the voting venue. Usually, it is one to three working days. 

Parental Leave: Parents are entitled to unpaid leave for at least four months for each parent, starting from the end of the maternity leave and until the child becomes six years old. 

Adoption Leave: Employees are entitled to paid leave to adopt a child younger than six years. 

Study leave: Employees who study at a public school or university are entitled to a special leave of up to 30 days per year to study for their exams. The employee is paid by OAED (Labor Force Employment Organization) during their study leave. The employee must verify the exam participation with a certificate from the school or university. Because study leave is granted for the preparation of the employee for their exams, it should be taken during the exam period. For postgraduate students, study leave amounts to 10 days per year and is considered unpaid. 

Termination

Notice Period

Types of Termination: There are two types of termination for indefinite-term employment contracts (dismissal):

  1. With prior notice (regular termination), which applies only to white-collar employees; and
  2. Without prior notice (irregular termination)

When a dismissal with notice is implemented, the notice period depends on the employee's years of service with the (former or current) employer, as follows:  

  • up to 12 months of employment: no notice;
  • from one year to two years of employment: one month's notice;
  • from two full years to five years of employment: two months' notice;
  • from five full years to 10 years of employment: three months' notice; and
  • more than ten full years: four months' notice

Severance Pay

A termination form must be submitted to the local authorities when there is a leaver no later than eight days following the employee's dismissal. If they were fired, payment should be made on the departing employee's last day. Payment will be made in accordance with each allowance's deadline if the leaver has resigned. In Greece, employees' rights depend on whether they are blue-collar or white-collar.

For blue-collar employees:

  • No severance pay if tenure is less than one year
  • Seven days' wages if tenure between one year and two years.
  • 15 days of wages if tenure is more than two years and less than five years
  • One month's wages if tenure is more than five years and less than ten years 
  • Two months of wages if tenure is more than ten years and less than 15 years
  • 100 days of wages if tenure is more than 15 years and less than 20 years
  • 120 days of wages if tenure is more than 20 years and less than 25 years
  • 145 days of wages if tenure is more than 25 years and less than 30 years
  • 165 days of wages if tenure is 30 years or more

For white-collar employees:

  • No severance pay if tenure is less than one year of service
  • Two months of wages if tenure is less than four years of service
  • Three months of wages if tenure is more than four years and less than six years of service
  • Four months of wages if tenure is between six and eight years of service
  • Five months of wages if tenure is between six and ten years of service
  • Five month of wages plus one month for each year of service above 10 years.

Visa

Overview

Greece has two categories of work visas - Short stay C Visa and long stay D visa. 

Short-term Visa: A Schengen visa entitles the holder to travel to and remain in Austria, Belgium, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, The Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland for a maximum of 90 days in any 180-day period*.  

In the following circumstances, a Schengen visa application can be submitted at the Greek Embassy:

  • The applicant's sole destination is Greece.
  • If the applicant plans to visit more Schengen nations, Greece must be their primary destination or, in the absence of a primary destination, the applicant's initial port of entry into the Schengen region.

The Embassy decides on applications once they arrive at the Embassy, and the processing time is a maximum of 15 days; however, in exceptional circumstances, this period may be extended up to 30 calendar days, particularly when an additional review of the application is required. On rare occasions, the period may also be extended up to a maximum of 60 calendar days.  

Long-term Visa: A "D" visa for extended stays enables the holder to enter and remain in Greece for over three months. It may be given for several reasons, including job, education, academic research, involvement in cultural, scientific, or religious activities, and family reunion. National visa holders must apply for a residence permit in Greece as soon as they enter the nation. The applicant must apply for a visa for an extended stay in Greece and any necessary supporting documentation.

Employee Background Checks

Legal and Background Checks

From a data protection law point of view, the personal data collected and processed for any background checks must only include the data necessary for deciding whether to conclude an employment contract. If an employer contains any personal data for an employee, it must be limited to data required for assessing the candidate for a particular job. If conditions are not followed, there are penalties according to the GDPR. 

Last updated on August 23, 2023

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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