Employer of Record in Greece

An Employer of Record (EOR) in Greece is a company that legally employs workers on your behalf. This means you can hire talent in Greece without setting up a local legal entity. An EOR, like Rivermate, handles all the HR tasks, including payroll, taxes, benefits, and compliance with Greek labor laws. You manage your team's day-to-day work, while the EOR takes care of the employment paperwork.

How an Employer of Record (EOR) Works in Greece

Using an EOR in Greece simplifies hiring. The process is straightforward and allows you to onboard new team members quickly.

Here is how it works:

• You find the talent. You recruit and select the person you want to hire in Greece.
• The EOR drafts a compliant contract. The EOR creates an employment contract that follows all Greek labor laws.
• The EOR becomes the legal employer. The EOR hires your chosen candidate, becoming their official employer on paper.
• Onboarding begins. The EOR manages all the necessary paperwork to onboard your new employee, including registering them with the Greek authorities.
• Payroll and benefits are managed. The EOR handles salary payments, tax withholdings, and social security contributions.
• You manage your employee. You direct their daily tasks and responsibilities, just like any other member of your team.

Why use an Employer of Record in Greece

Using an EOR in Greece is a practical solution for companies looking to expand. It saves you the time and expense of setting up a legal entity in a new country. This allows you to enter the Greek market quickly and efficiently.

Here are some key benefits:

• Fast market entry. You can hire employees and start operations in Greece in a matter of days, not months.
• Compliance with local laws. EORs are experts in Greek labor law, ensuring you avoid legal issues.
• Reduced administrative burden. The EOR handles all HR-related administrative tasks, freeing you to focus on your business.
• Cost savings. You avoid the significant costs associated with establishing a legal entity in Greece.
• Access to expertise. You benefit from the EOR's local knowledge of the Greek employment landscape.

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.

Hiring in Greece offers a strategic advantage for companies looking to expand into the Mediterranean market. You gain access to a skilled workforce and competitive operational costs, particularly in growing sectors like technology and tourism. However, navigating Greek employment laws requires a clear understanding of local regulations. An Employer of Record (EOR) can simplify this process by handling legal compliance, payroll, and benefits, letting you focus on growing your business.

Employment contracts & must-have clauses

While verbal agreements can be valid, written contracts are the standard and highly recommended for clarity. You can use two main types of employment contracts in Greece:

• Indefinite-term contracts: These are the most common and have no set end date.
• Fixed-term contracts: These specify a duration and end on a predetermined date or upon project completion.

Your employment contracts must include several key clauses to be compliant.

Probation periods

In Greece, you can include a probationary period in an employment contract to assess a new hire's suitability. For indefinite-term contracts, the maximum probation period is six months. For fixed-term contracts, the probation period cannot exceed one-quarter of the contract's total duration, with a maximum of six months.

During the first 12 months of employment, which includes the probationary period, you can terminate the contract without notice or severance pay.

Working hours & overtime

The standard workweek in Greece is 40 hours, typically worked over five days at eight hours per day.

Overtime is work performed beyond the standard 40-hour week. Here’s how it works:

• Overwork: Hours worked between 40 and 45 hours in a five-day week are considered overwork and paid at 120% of the normal hourly rate.
• Overtime: Work beyond 45 hours per week is overtime. The law limits overtime to a maximum of 150 hours per year.
• Overtime Pay: The pay rate for overtime is 140% of the regular hourly wage.

Public & regional holidays

Greece observes a number of national public holidays each year. If an employee is required to work on a public holiday, they are entitled to additional pay.

Here are the official public holidays in Greece:

• New Year's Day (January 1)
• Epiphany (January 6)
• Clean Monday (movable)
• Independence Day (March 25)
• Good Friday (movable)
• Easter Monday (movable)
• Labour Day (May 1)
• Whit Monday (movable)
• Assumption of Mary (August 15)
• Ohi Day (October 28)
• Christmas Day (December 25)
• Second Day of Christmas (December 26)

Hiring contractors in Greece

Hiring independent contractors in Greece gives you flexibility and access to specialized skills without the commitments of a full-time employee. Contractors manage their own taxes and social security contributions and are not entitled to employee benefits like paid leave or minimum wage.

However, it is crucial to classify workers correctly. Misclassifying an employee as a contractor can lead to significant penalties, including back payments for taxes and social security, fines, and being required to provide full employee benefits. Greek authorities look at the actual nature of the working relationship, not just the contract title. Factors that point to an employment relationship include employer control over the work, integration into the company, and economic dependence on one client.

An Employer of Record (EOR) mitigates this misclassification risk. An EOR can compliantly hire workers on your behalf, ensuring they are classified correctly under Greek law. This protects you from legal and financial penalties while allowing you to work with Greek talent efficiently and safely.

Understanding compensation and payroll in Greece is straightforward. The system is well-defined, with clear rules for how you pay your employees. This includes standard monthly salaries plus additional mandatory bonuses. Navigating Greek payroll means understanding these unique elements to ensure you comply with local laws.

Payroll cycles & wage structure

In Greece, you typically pay employees monthly. Payments are expected on the same day each month, and no later than the last working day.

A key feature of Greek payroll is the 13th and 14th salary. This means employees receive additional payments throughout the year:

• Christmas bonus: A full month's salary, paid by December 21st.
• Easter bonus: Half a month's salary.
• Vacation bonus: Half a month's salary, paid before the employee's annual leave.

These bonuses are mandatory and considered part of an employee's annual compensation.

Overtime & minimums

The national minimum wage in Greece was updated in April 2024 to €830 per month. For employees with more experience, the minimum wage increases. For example, after nine years of service, the minimum wage is 30% higher.

Standard working hours are 40 hours per week, spread over five days. Any hours worked beyond this are considered overtime. The law allows for up to 150 hours of overtime per year.

Overtime pay rates are:

• Legal overtime: The hourly wage is increased by 40%.
• Illegal overtime: If an employee works overtime without the proper approvals, they are entitled to their hourly wage increased by 120%.

Employer taxes and contributions

As an employer in Greece, you are responsible for making several social security contributions. These are calculated as a percentage of the employee's gross salary.

Employee taxes and deductions

Employees also contribute to social security and pay income tax. These deductions are taken directly from their paycheck.

Personal income tax is progressive, with rates increasing with income.

In Greece, your employee benefits package is a mix of required leave and social security contributions, plus extra perks you can offer. The system is designed to provide strong protections for employees. This includes generous leave allowances and a public healthcare system. Understanding these benefits is key to hiring and keeping a great team in Greece.

Statutory leave

Annual Leave

Employees get paid time off each year. The amount of leave depends on how long they have worked for you.

• First year: 20 days for a 5-day work week, or 24 days for a 6-day work week.
• After one year: This increases by one day each year for the first two years.
• After 10 years: Employees with a decade of experience with the same employer are entitled to 25 days of annual leave.

Sick Leave

If an employee gets sick, you are required to provide paid time off.

• You pay 50% of their salary for the first three days.
• After that, the social security fund, e-EFKA, covers the cost.
• The total number of sick days an employee can take depends on their years of service.

Maternity and Paternity Leave

Greece provides substantial leave for new parents.

• Maternity leave: New mothers get 17 weeks of leave, split into 8 weeks before the birth and 9 weeks after.
• Paternity leave: New fathers receive 14 days of paid leave.

Public holidays & regional holidays

Employees in Greece are entitled to paid time off for public holidays. If an employee has to work on a holiday, they get their regular daily wage plus a 75% bonus.

Some regions and municipalities also have their own local holidays to honor patron saints.

Typical supplemental benefits

You can offer more than the minimum to attract top talent. Here’s a look at what’s required versus what you can add.

How an EOR can help with setting up benefits

An Employer of Record (EOR) makes it easier to offer competitive benefits in Greece.

• Compliance: An EOR ensures you meet all of Greece's labor laws.
• Administration: They handle the paperwork and administration of both required and supplemental benefits.
• Expertise: You get access to local knowledge about what makes a benefits package attractive to Greek employees.
• Simplicity: An EOR simplifies the process, letting you focus on your business goals.

When you part ways with an employee in Greece, you need to follow a clear process. It involves specific rules to make sure everything is fair and legal. You must provide written notice and pay any severance that is due. You also have to inform the local labor authorities about the termination. This process protects both you and your employee.

Notice periods

When you terminate an employee's contract, you usually need to give them notice. The length of this notice period depends on how long the employee has worked for you.

For employees with less than one year of service, a notice period is not legally required.

Severance pay

In Greece, severance pay is a requirement when you terminate an indefinite contract. The amount of severance depends on the employee's length of service with your company. If you provide the full statutory notice period, the severance pay amount is lower. If you terminate the contract without giving notice, the severance pay is higher. You must pay the severance when you give the written termination notice.

How Rivermate handles compliant exits

When you use an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure every termination is compliant with Greek labor laws.

Here’s how we help:

• Documentation: We handle all the necessary paperwork. This includes preparing the written termination notice and submitting the required notifications to the Greek labor authorities.
• Calculations: We calculate the correct notice period and severance pay based on the employee's service time. This removes the guesswork and ensures you meet your legal obligations.
• Guidance: We provide expert advice on the specific circumstances of each termination. This helps you navigate complex situations and minimize legal risks.
• Final Payroll: We ensure the employee's final paycheck, including any unused vacation days and other entitlements, is calculated and paid correctly and on time.

We take care of these details so you can focus on your business. Our process ensures a smooth and respectful exit for your employees.

Getting the right visas and work permits in Greece is a must if you're hiring from outside the European Union. The process has a lot of steps, and you need to get it right. It all starts with a job offer from a company that is legally set up in Greece. From there, your new hire will need to apply for a long-stay visa, also known as a Type D visa, to enter the country. Once they arrive, they have to get a residence permit to live and work in Greece legally.

Employment visas & sponsorship realities

When you use an Employer of Record (EOR) in Greece, we can sponsor work visas for your employees. But it's important to understand what's practical and what's not.

What an EOR can sponsor:

• Standard Employment Visa: This is the most common path for full-time employees. As your EOR, we can sponsor this visa because we are a registered legal entity in Greece. This is for typical, ongoing employment relationships.
• EU Blue Card: This option is for highly skilled professionals. If your employee qualifies, the EU Blue Card allows them to work in Greece and other EU countries.

What an EOR generally can't sponsor:

• Seasonal Work Visas: These are for temporary jobs in sectors like tourism or agriculture. The process for these visas is very specific and tied directly to the company where the work will be done. This doesn't fit the EOR model.
• Self-Employed Visas: If someone plans to start their own business in Greece, they need a visa for independent economic activity. An EOR's role is to be the legal employer, so we can't sponsor a visa for someone who will be self-employed.
• Independent Contractors: Freelancers and independent contractors do not get sponsorship for visas. They have a different process that doesn't involve an employer.

A key step in the sponsorship process is the labor market test. Greek authorities need to check if the job could be filled by someone from Greece or the EU before they approve hiring a non-EU national.

Business travel compliance

Sometimes, your employees may need to visit Greece for short business trips. This could be for meetings, conferences, or training. For these short stays, a Schengen "C" visa is usually what's needed.

Here’s what you need to know:

• The 90/180 Rule: The Schengen visa allows a person to be in the Schengen Area (which includes Greece) for up to 90 days within any 180-day period.
• No Work Allowed: This visa is for business-related activities, not for actual employment. Your employee cannot perform work that a Greek resident would be paid for.

It's important to follow these rules to avoid any legal issues. If a short trip turns into a longer-term assignment, you will need to look into getting the right work visa.