In Greece, labor law mandates a comprehensive set of benefits that employers must provide to their employees. These benefits ensure a minimum level of security and well-being for workers.

Paid Leave

• Annual Leave: Greek employees are entitled to a minimum of 20 calendar days of paid annual leave each year. This leave can be extended through collective bargaining agreements with specific unions or company policies.

• Public Holidays: Employees in Greece are entitled to paid leave on all 12 official public holidays throughout the year.

• Sick Leave: Employees are entitled to paid sick leave for a specific duration depending on their illness and the supporting medical documentation provided.

• Maternity Leave: Mothers are entitled to 17 weeks of paid maternity leave at full pay, followed by an optional period of unpaid leave extending up to 6 months.

• Paternity Leave: Fathers are entitled to 14 days of paid paternity leave upon the birth of their child.

• Parental Leave: Working parents can share an additional 4 months of parental leave following maternity leave, though this leave is unpaid.

Social Security Contributions

Employers in Greece are required to contribute to their employees' social security along with the employee's own contribution. This social security provides benefits such as pensions, healthcare coverage, unemployment benefits, and disability payments upon retirement or specific situations.

Additional Mandatory Benefits

• Notice Period: Both employers and employees are required to provide a minimum notice period before termination of employment. This notice period varies depending on the employee's tenure with the company.

• 13th & 14th Month Salary: In addition to their regular salary, employees are entitled to two additional bonus payments per year. These bonuses are typically paid in three installments - a full salary bonus at Christmas and half-month bonuses for Easter and vacation.

• Severance Pay: Under certain circumstances, such as termination by the employer without just cause, employees are entitled to severance pay. The amount of severance pay is calculated based on the employee's salary and tenure.

In Greece, employers often provide optional benefits to attract and retain top talent. These benefits can significantly enhance an employee's overall compensation package and satisfaction.

Health and Wellness

• Private health insurance: Employers may offer private health insurance plans that provide broader coverage and access to specialists.
• Wellness programs: Companies are increasingly offering programs that promote employee well-being. These can include gym memberships, healthy lifestyle coaching, and discounts on health-related services.

Financial Security

• Pension plans: Some employers offer supplemental pension plans.
• Life insurance: This benefit can provide financial security for employees' families in the event of their death.

Work-Life Balance

• Flexible work arrangements: This can include remote work options, flextime schedules, and compressed workweeks.
• Childcare assistance: Employers may offer subsidies or on-site childcare facilities to help employees manage work-life balance.

Additional Perks

• Meal vouchers or allowances: This benefit helps offset the cost of meals during work hours.
• Transportation allowances: Companies may offer allowances to cover commuting costs.
• Paid time off: Some employers offer additional paid time off.
• Educational assistance: This benefit can help employees pursue further education or professional development.
• Discounts on company products or services: Employees may receive discounts on products or services offered by their employer.

In Greece, a mandatory social security system known as EFKA (Ενιαίο Φορέα Κοινωνικής Ασφάλισης) provides most residents with healthcare coverage. This system applies to both employees and the self-employed.

EFKA: Mandatory Health Insurance

All employees in Greece are automatically enrolled in EFKA and contribute a portion of their salary towards health insurance. The contribution rate varies depending on the employment sector:

• Private Sector: Employees contribute 14.12% of their gross salary.
• Public Sector: Employees contribute 15.33% of their gross salary.

Employers also contribute a significant portion towards their employees' health insurance:

• Private Sector Employers: Contribute 22.54% of the employee's gross salary.
• Public Sector Employers: Contribute 24.33% of the employee's gross salary.

EFKA coverage grants employees access to a range of healthcare services, including:

• Visits to general practitioners and specialists
• Hospital care
• Medications (with some co-pays)

However, there is a minimum contribution requirement to qualify for full benefits. To access illness benefits in kind (such as doctor visits or hospital stays), an employee must have paid contributions corresponding to at least 50 days of employment during the preceding year or the preceding 12-month period.

Greece offers a two-tier retirement system for employees, combining a mandatory state pension with the option for supplemental plans.

Mandatory State Pension (EFKA)

EFKA (Ενιαίο Φορέα Κοινωνικής Ασφάλισης), the unified social security fund, administers the mandatory state pension for all employees in Greece. Both employers and employees contribute a percentage of their earnings to EFKA throughout the employment period. The contribution rate varies slightly across sectors but typically falls around 6.5% for each party (employer and employee).

To qualify for a full state pension, individuals must meet a minimum retirement age and contribute for a specific number of years. For a full pension, the requirements are 67 years old with 40 years of contributions (12,000 days). For a reduced pension, the requirements are 67 years old with at least 15 years of contributions (4,500 days). There are also early retirement options with reduced benefits. The state pension amount is calculated based on average earnings and contribution history.

The New Individual Defined Contribution (DC) System

TEKA (Ηλεκτρονικό Εθνικό Κέντρο Ασφάλισης), established in 2022, is a mandatory individual DC plan for new labor market entrants under 35 years old on January 1, 2022. The contribution rate mirrors the state pension system, with employers and employees each contributing around 3% (as of June 2022) on capped earnings.

TEKA members choose from a range of risk-adjusted investment funds, with the option to switch strategies every three years. At retirement, individuals with at least 15 years of total contributions (including EFKA) can receive a lifetime annuity pension or a lump sum payment based on their TEKA account balance. Those with fewer than 15 years receive a lump sum upon retirement.

Supplemental Pension Plans

In addition to the mandatory plans, some employers in Greece offer voluntary supplemental pension plans. These plans can be a valuable way for employees to save additional funds for retirement and achieve a desired retirement income level.

The Greek retirement system is undergoing a transition with the introduction of TEKA. While the state pension provides a basic level of income security, employees may need to consider additional savings or explore supplemental plans to ensure a comfortable retirement.