Employer of Record in Greece

Hiring employees in Greece requires navigating specific local labor laws and regulations, which can be complex for foreign companies. Establishing a legal entity is one approach, but it often involves significant time and financial investment. Understanding the available options is crucial for a smooth and compliant expansion into the Greek market.

When considering hiring talent in Greece, companies typically have a few pathways:

• Establishing a Local Entity: This involves setting up a subsidiary or branch office in Greece, a process that includes company registration, obtaining tax IDs, and complying with all local corporate governance requirements.
• Utilizing an Employer of Record (EOR): Partnering with an EOR like Rivermate allows companies to hire employees in Greece quickly and compliantly without needing to establish their own legal entity. The EOR acts as the legal employer, handling all local employment responsibilities.
• Hiring Independent Contractors: For project-based or short-term engagements, companies might opt to hire independent contractors. However, it's vital to ensure these arrangements strictly adhere to Greek labor laws to avoid misclassification risks.

How an EOR Works in Greece

An Employer of Record simplifies global hiring by acting as the legal employer for your team members in Greece. This means the EOR takes on the full burden of local employment compliance, while your company retains full control over your employees' day-to-day work and responsibilities.

The Employer of Record handles critical aspects such as:

• Payroll Processing: Ensuring timely and accurate payment of salaries, social security contributions, and taxes in compliance with Greek regulations.
• Tax Withholding and Remittance: Managing all local income tax and social security contributions, including IKA (Social Insurance Institute) contributions.
• Benefits Administration: Administering mandatory benefits like health insurance, pension contributions, and leave entitlements in accordance with Greek labor law.
• Employment Contracts: Drafting and managing compliant employment contracts that adhere to Greek labor codes, including terms related to working hours, notice periods, and termination.
• HR Compliance: Ensuring adherence to all local labor laws, including those related to working conditions, statutory leave, and employee rights.

Benefits for Companies Looking to Hire in Greece Without Establishing a Local Entity

Leveraging an EOR service offers significant advantages for companies seeking to tap into Greece's talent pool without the commitment of setting up a local entity.

• Speed to Market: Hire employees in Greece much faster, often within days, rather than months, accelerating your market entry.
• Reduced Costs: Avoid the substantial expenses associated with company registration, legal fees, and ongoing administrative overhead of a local entity.
• Minimized Risk: Transfer the burden of navigating complex and evolving Greek labor laws, payroll, and tax regulations to an expert.
• Flexibility: Easily scale your team up or down in Greece without the administrative complexities of entity management.
• Focus on Core Business: Free up internal resources from administrative and compliance tasks, allowing your team to concentrate on strategic growth and operations.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Greece includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Greece.

In Greece, employers must contribute approximately 22-25% of each employee's gross salary to social security funds, covering pensions (13.87%), healthcare (7.10%), unemployment (1.20%), and other contributions. They are also responsible for withholding income tax based on a progressive scale, with rates ranging from 9% for incomes up to €10,000 to 44% for earnings over €40,000. Employers must remit these taxes monthly and file annual reconciliation reports, primarily through electronic systems, with penalties for non-compliance.

Employees benefit from deductions such as medical expenses, education costs, insurance premiums, and family allowances, which can reduce taxable income. Key deadlines include monthly payroll tax submissions and end-of-year filings. Foreign workers' tax obligations depend on residency status, with special considerations like double taxation treaties and incentives for expatriates. Foreign companies must also adhere to VAT registration and reporting if applicable.

Greece's employment market features variable salaries based on industry, role, experience, and location, with major cities offering higher pay. For 2025, typical salary ranges include €30,000–60,000 for software engineers and €40,000–80,000 for physicians, among others. The statutory minimum wage remains at €830/month, applicable to all full-time employees, with employers legally required to meet or exceed this rate.

Employees often receive additional bonuses such as Christmas (one month’s salary), Easter, and vacation allowances, along with allowances for transportation, meals, housing, and performance incentives. The standard payroll cycle is monthly, with salaries paid via bank transfer, and employers must deduct taxes and social security contributions accordingly.

Key salary trends for 2025 suggest upward movement driven by economic growth, skill shortages, inflation, policy changes, and remote work dynamics. Employers should monitor these factors to remain competitive and ensure compliance with Greek labor laws.

In Greece, employers must comply with legal leave entitlements, including annual vacation, public holidays, sick leave, and parental leave. For 2025, employees working five days a week are entitled to a minimum of 20 paid vacation days, increasing to 25 days after one year of employment; for six-day workers, the minimum is 24 days, rising to 30 days after one year. Vacation must generally be taken within the calendar year, and employees receive their regular salary during leave, with paying in lieu only permitted upon termination.

Greece observes 14 public holidays in 2025, with specific dates listed below. If a holiday falls on a weekend, it is typically not moved. Employees are entitled to paid days off for these holidays, though some sectors may have different rules, especially regarding holiday work and pay rates.

Sick leave requires notification within 24 hours and a medical certificate for absences over three days. Employees typically receive 50-60% of their salary paid by EFKA after a three-day waiting period, with the employer covering the first three days. Parental leave includes 119 days of maternity leave with full salary support, 14 days of paid paternity leave, and adoption leave with benefits depending on the child's age. Additional leave types such as bereavement, marriage, study, and sabbatical are available under specific conditions.

Greece mandates several employee benefits, including social security contributions to EFKA covering pensions, healthcare, and unemployment, paid annual leave (minimum 20 days for a 5-day week), paid public holidays, maternity and sick leave, Christmas and Easter bonuses, and termination-related notice and severance pay. Employers must contribute to EFKA, with contribution rates varying by sector and employment type.

In addition to mandatory benefits, many employers offer optional perks such as private health and life insurance, meal vouchers, company cars, professional development, and flexible working arrangements to attract and retain talent. Greece's healthcare system combines public (ESY) services funded through social security and taxes with private insurance options, often provided by employers for faster, specialized care.

Retirement benefits are managed through EFKA, with a standard retirement age around 67 years and potential supplementary pension schemes. Benefit packages differ by company size and industry, with larger firms typically providing more comprehensive benefits, including private health insurance, life insurance, and additional perks.

Employment agreements in Greece are governed by labor law, requiring clear documentation of terms and conditions. Employers must include essential clauses such as parties involved, job description, start date, workplace, working hours, compensation, leave entitlements, termination conditions, and applicable collective agreements to ensure legality and enforceability. Greek law recognizes various contract types, including indefinite, fixed-term, part-time, and project-based agreements, each with specific features and limitations.

Probationary periods are permitted up to 12 months, during which employees enjoy full rights, and employment can be terminated with shorter notice. Confidentiality and non-compete clauses are common but must be reasonable in scope and duration to be enforceable; employers may need to provide compensation during non-compete periods. Contract modifications require mutual written consent, and termination must be justified with valid reasons, proper notice, and severance pay if applicable. Employees can contest unfair dismissals through courts, which may order reinstatement or compensation.

Employers should ensure modifications are in writing, justify terminations, and adhere to notice and severance requirements to avoid legal disputes.

Greece has experienced a notable rise in remote work and flexible arrangements, driven by digital transformation and evolving employee expectations. The legal framework, primarily governed by Law 4808/2021, mandates that employees can request remote work with employers required to consider these requests reasonably. Employers must provide necessary equipment, ensure health and safety, and formalize arrangements via written agreements, guaranteeing remote workers equal rights and the right to disconnect outside working hours.

Flexible work options in Greece include flextime, compressed workweeks, job sharing, telecommuting, and part-time work, allowing employers to tailor arrangements to diverse needs. Data protection remains a priority, with GDPR compliance requiring robust security measures, transparent privacy policies, and employee training. Clear policies on equipment provision, expense reimbursement, and home office setup are essential, alongside reliable technology infrastructure—high-speed internet, collaboration tools, security software, and technical support—to facilitate effective remote work.

Terminating an employee in Greece requires strict adherence to legal procedures, including providing written notice, calculating severance pay, and ensuring valid grounds for dismissal. Notice periods vary based on service length, from 1 month for up to 1 year of employment to 6 months for over 10 years, with potential for longer periods via collective agreements. Severance pay is mandatory for dismissals without cause after at least one year of service, calculated based on tenure and salary, with caps for employees exceeding 25 years of service.

Employers must provide written notice, specify reasons (especially for justified dismissals), pay due severance, settle outstanding dues, and maintain documentation. Grounds for termination include just cause (e.g., theft, gross insubordination) or economic reasons (e.g., restructuring). Greek law strongly protects against wrongful dismissal, allowing employees to seek reinstatement or compensation through labor courts. Employers should follow all procedural steps carefully and seek legal advice to mitigate risks.

Greece's freelancing and independent contracting landscape is expanding, aligning with global trends towards flexible work. Employers, both local and international, are increasingly hiring independent contractors for specialized tasks, temporary projects, or continuous services. Understanding the legal, contractual, and tax frameworks is essential to avoid misclassification, which can lead to penalties such as back taxes and claims related to employment rights. Greek law emphasizes the actual nature of the work relationship over contractual titles, focusing on factors like control, integration, economic dependence, duration, exclusivity, risk, and the nature of work.

Independent contractor agreements in Greece should clearly delineate the autonomous nature of the relationship, covering scope of work, payment terms, autonomy, expenses, confidentiality, intellectual property, liability, and dispute resolution. Intellectual property rights typically remain with the creator unless the contract specifies otherwise, necessitating explicit clauses for assignment or licensing. Contractors are responsible for their own tax and social security obligations, including income tax, VAT, and EFKA contributions. Engaging entities must ensure compliance by obtaining valid invoices and reporting payments. Professional liability insurance, while not always mandatory, is advisable for risk mitigation.

Independent contractors are prevalent in sectors such as IT, creative industries, consulting, education, healthcare, construction, and tourism. Their specialized skills and flexibility make them valuable assets, enabling businesses to adjust expertise levels without long-term employment commitments.

Greece's work permit system for non-EU/EEA citizens involves obtaining a long-stay visa (Type D) and a residence permit for employment. Key visa types include the Long-Stay Visa, Work Visa, ICT Permit, and Highly Skilled Employment Visa, tailored to different employment scenarios. The application process requires a valid job offer, employer sponsorship, labor market test, and submission of documents such as passport copies, educational credentials, proof of accommodation, health and criminal certificates. Processing times typically range from 2 to 6 months, with fees between €100 and €200.

Employers must ensure foreign employees hold valid permits, comply with labor laws, and maintain accurate records, while employees must adhere to visa conditions and renew permits timely. After five years of legal residence, workers may qualify for permanent residency, which grants similar rights to Greek citizens. Family members can apply for dependent visas with proof of relationship, financial support, and health insurance.