Employer of Record in Greece

Once thought of as the birthplace of Western civilization, Greece has undergone difficult austerity measures over the last decade, which have affected many areas of Greek life. But now Greece is making huge strides in economic recovery and attracting the attention of international investors, businesses, and workers.

In just over a decade, Greece has reduced its unemployment rate by more than half and has implemented a number of policies that open up the labor market. This decision came on the back of Greece’s brain drain, where nearly one million Greeks left the country for Europe during the austerity measures.

Greece is also experiencing a severe population decline due to low birth rates and a rapidly aging population. This has increased the pressure on an already strained labor market. To counteract these challenges, Greece has been encouraging the hiring of foreigners and also the entry of digital nomads to boost the economy.

Historically, Greece’s major strengths have been in tourism and shipping, but now the country is also developing an advanced technology industry. For companies wanting to expand into Europe, Greece offers EU access, attractive investment opportunities, and lower employment costs than other European countries.

Recently, the Greek government has tightened up its labor policies, increased the minimum wage, and changed the number of working hours per week for all employees. These employment regulations form part of new measures to attract talent into Greece.

With an Employer of Record (EOR) in Greece, you can hire talent in Greece without setting up a local legal entity. An EOR, like Rivermate, handles the HR tasks, including payroll, taxes, benefits, and compliance with Greek local employment laws. They can also assist you with employing contractors and immigration procedures for company employees who want to relocate to Greece.

How an Employer of Record (EOR) Works in Greece

Entering into a foreign market and international employment remains a risk for businesses wanting to expand their reach. Minimizing that risk requires expertise in the target market. 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 law requirements.
• The EOR becomes the legal employer. The EOR completes the hiring process with your candidate, becoming their official employer on paper.
• Onboarding begins. The EOR manages all the necessary paperwork to onboard employees, including registering them with the Greek authorities. This process takes up to two weeks, and if immigration is involved can take up to three months.
• Payroll and benefits are managed. The EOR handles payroll processing, tax withholdings, and the unified social security fund.
• 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

The benefits of an EOR for international companies is the speed and flexibility with which you can enter a new market. Since the EOR is a full legal employer in Greece, handling compliance tasks, labor laws, and mandatory benefits is part of their everyday work.

Here are some key benefits:

• Fast market entry. You can hire global talent and start operations in Greece in a matter of days, not months.
• Compliance with local labor laws. EORs are HR experts in the Greek market, ensuring you avoid legal issues.
• Reduced administrative burden. The EOR handles all interactions with Greek tax authorities and labor departments, freeing you to focus on your business.
• Cost savings. You avoid the significant costs associated with establishing a legal entity in Greece.

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 2026, the new Ergani II system became fully operational in Greece. This intends to change the face of employment in the country by introducing a fully digital employment monitoring system. This system will replace previous fragmented systems and manual forms that slowed down the onboarding of workers in Greece.

Regani II will also consolidate all types of work in Greece into one unified platform. Full-time, part-time, seasonal, contract, and rotating work procedures will be completed using the system.

Currently, Greece has a shortfall of over 270 000 vacancies and is actively trying to recruit workers from other countries. This opens up opportunities for countries with employees who either want to relocate to Greece or want to work remotely from the country. That being said, foreigners can often get tangled up in the bureaucratic red tape of visas and work sponsorship.

Compared with countries like the UK, Germany, the Netherlands, and Denmark, Greek skilled professionals earn significantly lower salaries. This means the total employment cost for Greece compared to the rest of Europe is much lower.

First-time employers in Greece must contribute to social security payments and pay mandatory bonuses and leave payments. Companies that forget these payments can end up with up to a 20% shortfall in employment costs.

Greek employment contracts must align with the new labor laws implemented in 2025/2026 to be compliant, and must be loaded in the Ergani II system. Not following this process would trigger fines and labor law non-compliance warnings.

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

Global workforce options will often include the use of independent contractors or self-employed individuals. They fall under B2B agreements in Greece and are distinct from employees in that they manage their own work schedules and pay their own taxes. In Greece, such individuals are registered as sole proprietors (atomiki epicheirisi).

In any country, the classification of workers for employment reports and tax purposes must be done correctly, and when it is not, it leads to fines and, in some cases, legal issues. Countries also do this to prevent the abuse of workers (employers hire employees as contractors to reduce salary costs). Greece is no different, and the authorities look into the actual nature of the working relationship to determine classification.

For the construction industry, contractors must be registered as an engineering firm or technical company and hold certain job titles to qualify for contractor classification. Companies that do not know about these stipulations will run the risk of misclassification.

An EOR can help you mitigate this risk by compliantly hiring 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

From 2026 setting up mandatory benefits must be done on the digital labor management system, Ergani II. Our local HR experts know the market well, and they navigate through the nuances of Greek bureaucracy on a daily basis. For this reason Rivermate is the perfect partner for your global hiring strategy 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 usually involves some kind of severance pay based on length of service, and a valid business cause must be given. 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

Employment exits are conducted according to Greek labor laws and reported on the Ergani II platform. Rivermate handles all exit administration on your company’s behalf, explains pay calculations, and benefit payouts (if applicable).

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.

Getting the right visas and work permits in Greece is a must if you're hiring from outside the European Union. 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.