Guide to employment, payroll and benefits in

Greece

Rivermate offers complete payroll, benefits and compliance services for

Greece

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Athens
Ease of doing business
68.4
Language
Greek
Population
10423054
GDP growth
1.35%

02. Grow your team in

Greece

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Greece

, particularly if you don't have established local relationships. You can hire employees in

Greece

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Greece is a country in Southeast Europe that is officially known as the Hellenic Republic. As of 2018, its population was estimated to be about 10.7 million, with Athens as the largest and capital city, followed by Thessaloniki. Greece is situated at the crossroads of Europe, Asia, and Africa, on the southern tip of the Balkans. Albania to the northwest, North Macedonia and Bulgaria to the north, and Turkey to the northeast are its land boundaries. The Aegean Sea is to the east, the Ionian Sea to the west, the Cretan Sea to the south, and the Mediterranean Sea to the north. At 13,676 kilometers long, Greece's coastline is the longest in the Mediterranean Basin and the 11th longest in the world, with numerous islands, 227 of which are inhabited. Eighty percent of Greece is mountainous, with Mount Olympus at 2,918 meters the highest peak. Macedonia, Central Greece, the Peloponnese, Thessaly, Epirus, the Aegean Islands, Thrace, Crete, and the Ionian Islands are the nine common geographic regions of Greece. The birthplace of democracy, Western philosophy, Western literature, historiography, political science, major scientific and mathematical concepts, Western drama, and the Olympic Games, Greece is considered the cradle of Western civilization. The Greeks were organized into numerous autonomous city-states known as poleis that spanned the Mediterranean and the Black Sea starting in the eighth century BC. In the fourth century BC, Philip II of Macedon unified most of modern-day Greece, and his son Alexander the Great quickly conquered much of the ancient world, from the eastern Mediterranean to India. In antiquity, the Hellenistic era saw the height of Greek culture and influence. In the second century BC, Rome conquered Greece, making it an integral part of the Roman Empire and its continuation, the Byzantine Empire, which was mostly Greek culturally and linguistically. The Greek Orthodox Church, which was established in the first century AD, contributed to the formation of modern Greek identity and spread Greek traditions throughout the Orthodox world. Following a war of independence in 1830, Greece emerged as a modern nation state after falling under Ottoman dominion in the mid-15th century. The 18 UNESCO World Heritage Sites in the country represent the country's rich historical legacy. Greece is a unitary federal republic and a developing nation with a sophisticated high-income economy and a high standard of life, ranking very high in the Human Development Index at the same time. It has the largest economy in the Balkans and is a major regional investor. Greece, a United Nations founding member, was the tenth country to join the European Communities and has been a member of the Eurozone since 2001.

04. Public holidays

05. Types of leave

Paid time off

Employees who work five days a week are entitled to a minimum of 20 prorated days of paid vacation per year. Employees are entitled to an extra day of leave for each additional year of employment, up to a limit of 22 days. Employees who have worked for the same employer for 10 years or for another employer for 12 years are entitled to 25 days of vacation each year.Employees with 25 years or more in experience are entitled to 26 days of vacation. Employees are therefore entitled to an annual leave payment equivalent to the compensation for time off, up to half a paycheck.

Public holidays

Greece recognizes 7 public holidays and 4 optional holidays.

Sick days

The employer is required to pay the employee for sick leave: 13 days in the first year and 25 days from the second year onwards. Both the boss and the EFKA pay for the days.

Maternity leave

119 calendar days of maternity leave. (The employer pays for the first month; the EFKA pays the rest.) The first 56 calendar days should be taken before the due date, and the next 63 calendar days should be taken after the due date.In addition to maternity break, the Labor Employment Office pays a 6-month leave at the minimum wage (OAED).Instead of shortened regular working hours, mothers can negotiate with their employers for an additional 3.5 months of paid leave.

Paternity leave

Since the birth of their child, fathers are entitled to two days of paid leave.

Parental leave

The boss pays for two days of childbirth leave.

Other leave

5 working days off for a weddingLeave for children's school grading: four working days for each infant under the age of sixteen. Each of the parents can take advantage of this type of leave.For the death of a husband/wife, infant, parents, or brothers, bereavement leave is granted for two working days.The length of election leave is determined by the time between the polling station and the workplace. In most cases, it takes 1 to 3 working days.

06. Employment termination

Termination process

An indefinite employment agreement is regarded employment with a probationary period during the first 12 months of the agreement, which may be terminated without notice or severance compensation during the probationary period, unless the parties agree differently.


After the initial 12 months, the employee cannot be terminated without the employer's prior written notice, which takes effect on the day the employee is notified.


These regulations apply to all types of terminations, including collective dismissals of non-workers. No notice is required when terminating employees.


A fixed-term contract may be terminated without notice by either the employee or the employer prior to the end date for a 'significant reason'. Significant reasons are occurrences that occur throughout the employer-employee relationship that make it hard to continue in good faith with the agreement. If there is a compelling justification, the employer is not required to provide compensation.


Additionally, the labor law states that upon termination, a fixed-term employment contract that includes a provision for early termination in compliance with the required severance computation is automatically converted into an indefinite-term employment contract.

Notice period

If the work relationship is based on a fixed-term contract, either the employee or the employer can terminate it at any time without notice. However, an explanation is stated (e.g., breach of contract, failure to comply with contract requirements, etc.). If no justification is offered, the employee has the right to file a claim in court and get compensation for the earnings earned up to the contract's expiration date. The duration of the notice period depends on the length of time the employee has been working if the employment contract is for an indefinite term. There will be a one-month notice period for individuals who have worked for the company for one to two years. The notice period is two months for employees who have been with the company for two to five years. The notice period is three months for employees who have been with the company for five to ten years. The notice period is four months for employees who have worked for more than ten years.

Severance pay

After one year of service, there is no requirement for severance pay. Severance pay for employees with more than a year of service varies by length of service and can be as much as 12 months' pay.

Probation period

There is no regulatory probationary period in Greece.

07. Working hours

General

The standard workweek consists of forty hours spread over five days. Employers and employees may agree to a six-day workweek with a maximum of 48 hours per day. Over a four-month period, the workweek may not exceed an average of 48 hours, including overtime. Certain sectors may have their own set of rules. Between 10 p.m. and 6 a.m. is considered evening work. It is compensated at 125% of the basic rate and is limited to eight hours per day.


In Greece, overtime is divided into two categories. Iperergasia, or extra time, is limited to one hour per day and is compensated at a rate of 120% of the basic salary.

Overtime

Overtime, or Iperoria, is limited to two hours per day and 120 hours per year. These hours are compensated at 140% of the regular salary. A permit from the Greek Ministry of Labor is required for work exceeding 120 hours per year.

08. Minimum wage

General

The minimum wage in Greece is set at 650€ per month or 29.04€ per day.

09. Employee benefits

General

Employees who worked for at least 50 days in the previous 15 months are generally eligible for free health and dental care through social security.

Some employers offer cars, health insurance, and/or housing allowances.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Greece

to hire a team takes time, money, and effort. The labor law in

Greece

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Greece

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Greece

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Greece

via our Employer of Record / PEO solution.

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