Employment contracts do not have to be presented in writing to be valid, but conditions of the employment must be presented to the employee in writing. The Labor Code requires that the employee’s benefits, working hours, salaries, and work schedule be provided to the employee.
One of three work permits must be obtained to work in Greece: Non-EU/EEA citizens must obtain a visa to enter Greece and must then obtain a residence permit. EU/EEA citizens do not need a visa to enter or work in Greece.
Working hours: Full-time employees will work 40 hours a week. The 40 hours are typically divided into 5 days a week and 8 hours a day or 6 days a week and 6 hours and 40 minutes a day. Employees can typically work 45 hours a week during a 5-day workweek or 48 hours during a 6-day work week but will be guaranteed overtime pay of 120% of usual wages. Employees are guaranteed a 15-minute break if the workday lasts more than 6 hours.
Minimum working age: Employees must be 15 years of age.
Salaries are disbursed on a monthly basis, with the payday typically being at the end of the month.
When hiring employees in Greece, social security contributions are mandatory and are to be made to the Unified Social Security Fund (E.F.K.A.). The below rates apply for E.F.K.A. fund covering salaried employees:
Social insurance in Greece: 16% of employee’s monthly gross salary.
Social insurance in Greece: 25.06% of employee’s monthly gross salary.
Greece tax withholding are handled as a Pay-As-You-Earn. Employers are required to withhold income tax from salaries, wages and other remuneration paid to their employees. The amounts withheld are determined in accordance with the scale of income tax rates applicable to individuals. Benefits in kind are not subject to payroll income tax withholdings. Income tax must be withheld on a monthly basis by the employer. An individual is required to file a tax return every year.
Certain expenses are deducted from the gross income to reach taxable income. These deductible expenses include the following:
• Social security contributions
• Alimony paid by divorced spouses (only to each other) based on a notary deed. The maximum alimony on which a tax deduction of 10% is calculated is EUR 15,000
• Donations and grants of specific instances and to restrictively listed bodies and organizations. The maximum amount of deduction is 5% of the total taxable income.
Residents receive the first AUD 18,200 of taxable income tax-free. Non-residents generally do not benefit from a tax-free threshold, nor do they qualify for the various tax rebates and tax offsets
Family Tax Benefits- Provided family income is below certain thresholds, resident individuals may be entitled to Family Tax Benefit payments if they have a dependent child or a secondary school student under the age of 20 for whom one cares for at least 35% of the time. The limits, rates, and nature of Family Tax Benefit payments vary depending upon family income, number of children, and ages of children, and change from year to year.
The standard VAT rate is 24%. The reduced rate on basic necessity is 13%. A super reduced rate of 6% is imposed for certain medicines and vaccines intended for human consumption.
An open-ended employment agreement of a private employee that has worked for the company more than 12 months cannot be terminated without prior written notice from the employer, which will take effect from the day after the employee is notified, under the following conditions:
• For employees who have served from 12 completed months to two years, one month’s notice is required before dismissal;
• For employees who have served from two to five years, two months’ notice is required before dismissal;
• For employees who have served from five to 10 years, three months’ notice is required before dismissal; and
• For employees who have served 10 years or more, four months’ notice is required before dismissal.
Termination in the event of redundancy: Collective redundancies are dismissals carried out by businesses or holdings employing more than 20 workers for reasons that do not concern the individuals being dismissed but rather any other financial or technical shortcoming of the business. The provisions applicable to the calculation of compensation also apply to collective redundancies.
In the case of an open-ended employment agreement terminated by the employer, the severance pay is calculated accordingly:
Employment with an open-ended employment agreement is considered to be employment for a probationary period for the first 12 months from the date that it comes into force, which may be terminated without notice and without severance pay, unless otherwise agreed by the parties.
An employee is entitled to a leave of 24 working days if the business operates a six-day working week system or, if the business operates a five-day working week system, of 20 working days. The employer is obliged to grant the of annual leave by the end of the calendar year in which the employee was recruited.
New Year’s Day – January 1
Epiphany – January 6
Orthodox Ash Monday – February 19
Independence Day – March 25
Orthodox Good Friday – April 6
Orthodox Easter Sunday – April 8
Orthodox Easter Monday – April 9
Labour Day – May 1
Orthodox Whit Sunday – May 27
Orthodox Whit Monday – May 28
Assumption Day – August 15
Ochi Day – October 28
Christmas Day – December 25
2nd Day of Christmas – December 26