Greece Compliance Hub: Employment, Payroll & Tax Guide
Key Law Terms Overview in Greece
Terms and conditions of employment
Collective work arrangements
Information on collective work arrangements
Pursuant to Article 8 of Law 1876/1990 (GG I/27/8.3.1990), as amended and in force, the Collective Labour Agreements (SSE) and Arbitration Decisions (DA) of similar scope in Article 16 of the same law, bind employees and employers who are members of affiliated trade unions and employers associations in the sector or profession within their scope of location, profession and time duration, or those in dispute accordingly, unless they are declared in general mandatory, under the conditions laid out by the above law, by decision of the Minister of Labour and Social Affairs. This law applies to everyone who works in an employment relationship governed by private law with any Greek or foreign employer, company, holdings or service in the private or public domain of the economy, including employees in farming, livestock farming and related work, as well as domestic servants (Article 1, section 1 of Law 1876/1990).
According to that set out in Article 8, section 3 of Law 1876/1990, ‘if the employer is bound by a company’s collective agreement, its regulatory terms also apply to the industrial relations of all employees working for the employer in question’, and if the employment relation is arranged by more current collective work agreements, the provisions on concurrent collective agreements of Article 10 of Law 1876/1990 apply, as in force.
Should free collective bargaining fail, the parties may appeal to the Organisation of Mediation and Arbitration (OMED). Extensive reference to requirements and other procedural issues are made in Articles 14 to 17 of Law 1876/1990, as in force.
Upon declaration of a Collective Arrangement of a general compulsory nature, the force of regulatory terms is extended to both employers and employees – non-members of affiliated organisations, who however fall within the purview in all respects of the SSE, to wit, within the scope of location, profession and time duration. That is to say, the declaration of a compulsory SSE or DA does not broaden its scope, but simply extends its application also to employees and employers who are not members of affiliated organisations, who are within the scope of SSE and who could join these organisations.
National General Collective Agreement (EGSSE)
Information on the National General Collective Agreement
The EGSSE also arranges, among other things, a number of specific provisions (of institutional nature). Indicatively, these provisions relate to: Parental leave, maternity leave, breast-feeding and child-care leave, marriage leave, leave for child-birth, single-parent family leave, bereavement leave for relative, leave for pupil – scholar – student examinations, leave for students (minors), healthcare leave for young unemployed, compensation for employees and skilled workers, night work for pregnant women, sick leave for dependent family members, leave for blood transfusions and its derivatives or haemodialysis, protection against termination of employment of dependent persons, study leave for students at the Centre for Educational Policy Development (KANEP). – GSEE (Geniki Synomospondia Ergaton Ellados), examination leave for post-graduate students, leave due to HIV, leave for a parent of a child with a condition requiring blood transfusions and its derivatives or haemodialysis, foreign employees, increase in regular leave after 25 years of work, leave of absence to monitor child’s school progress, work-life balance of adoptive parents.
According to article 8 §1 of Law 1876/1990 (A’ 27) as in force, the national general collective labour agreements define the minimum non-wage working conditions applicable to workers throughout the country. Basic salaries, basic wages, any kind of surcharges thereof and generally any other salary term, apply only to employees employed by employers of the contracting employers’ organizations and are not allowed to fall below the legal minimum wage and wage.
Article 1, section xi, subparagraph ix.11, indent 2α of Law 4093/2012 (GG/I/222), which replaced Article 8, section 1, indent i) of Law 1876/1990, provided that ‘national general collective agreements set out the minimum non-wage terms of employment, which are in force for all employees in Greece. Basic wages, basic daily wage of any kind of increase thereof and in general every other wage term, apply only to those employed by employers in affiliated employers’ organisations and it is not permitted them to fall short of the legislated minimum wage and daily wage.’
Minimum wage and minimum daily wage
Information on the minimum wage and the minimum daily wage
In Greece, the minimum wage and minimum daily wage have been regulated by law since 2012, subparagraph ΙΑ.11 of Law 4093/2012 (Government Gazette, Series I, No 222), and not by collective bargaining.
Article 103 of Law 4172/2013 (Government Gazette, Series I, No 167), as currently in force, introduced the new system of determining the statutory minimum wage and statutory minimum daily wage, following broad consultation. The article in question provides the Minister of Labour with legislative authorisation to issue a decision setting the statutory minimum wage and statutory minimum daily wage, in agreement with the Ministerial Council.
As of 1 April 2025, the statutory minimum wage and the statutory minimum daily wage for full-time employment for all employees and skilled workers throughout Greece with an employment relationship governed by private law, without age discrimination, was set in accordance with the provisions of Ministerial Decision No 8233/27.3.2025 (Government Gazette, Series II, No 1476)
More specifically:
a) for employees, the minimum wage is set at eight hundred and eighty euro (EUR 880.00);
b) for skilled workers, the minimum daily wage is set at thirty-nine euro and thirty cents (EUR 39.30).
It should be noted that, in accordance with Article 33(3) of Law 5053/2023 (Government Gazette, Series I, No 158), for employees who are paid the statutory minimum wage or daily wage, the period of a dependent employment contract or employment relationship that has been spent with any employer and in any specialisation before 14 February 2012 and after 1 January 2024, is recognised as previous experience. The above increase for previous experience is determined as follows:
a) for employees with a dependent employment relationship, at a rate of ten per cent (10%) for each three (3) years of previous experience and up to three (3) periods of 3 years of previous experience, and at a total rate of thirty per cent (30%) for previous experience of nine (9) years or more;
b) for skilled workers, with a dependent employment relationship at a rate of five per cent (5%) for every 3 years of previous experience and up to six (6) periods of 3 years of previous experience, and at a total rate of thirty per cent (30%) for previous experience of eighteen (18) years or more.
For individual employment contracts and collective labour agreements of any kind, it is forbidden to set regular monthly salaries or daily wages for full-time work below the abovementioned statutory minimum wage and statutory minimum daily wage.
Official holidays
Information about the official holidays in Greece
Article 4 of Royal Decree 748/1966, as supplemented by Article 42 of Law 4454/2018 (Government Gazette, Series I, No 130), and Article 1(1) of Emergency Law No 380/68, as amended by Article 14(1) of Law 4468/2017 (Government Gazette, Series I, No 61), sets out the following as compulsory public holidays:
(a) 25 March
(b) Easter Monday
(c) 1 May
(d) 15 August (Assumption)
(e) 25 December (Christmas Day)
(f) 26 December
The same article of Royal Decree 748/1966 states that 28 October may be designated as an optional holiday at the employer’s discretion.
The difference between compulsory and optional holidays is that on compulsory holidays the employment of workers is prohibited, whereas, on optional holidays, such employment is left to the discretion of the employer.
Working time
Information on working time and hours
Pursuant to Article 42 of Law 3986/2011 on Urgent measures for implementing the medium-term fiscal strategy framework for 2012-2015 (Government Gazette, Series I, No 152), which replaced Article 7 of Law 3846/2010 (Government Gazette, Series I, No 66), the working time arrangement system has been re-established.
Specifically, the new provision now makes it possible for companies where contractual working hours of up to forty (40) hours a week are applied, to apply, for a period of time, a system of increased employment (2 hours a day over the 8 hours), provided that the working week hours in excess of 40 or of the shorter contractual working hours per week, are deducted from the working hours of another period, a period of reduced employment. The periods of increased and reduced employment cannot exceed in total six (6) months over a twelve (12) month period (reference period).
Moreover, in the above companies, instead of the arrangement referred to in the previous paragraph, it is possible to allocate up to two hundred and fifty-six (256) working hours from the total employment time within one (1) calendar year, with an increased number of hours at specific periods, which cannot exceed thirty-two (32) weeks per year and respectively reduced working hours for the remaining part of the calendar year.
Working time arrangements are adopted by company-based collective labour agreements or agreements between the employer and the trade union or between the employer and the works council or between the employer and associations of individuals.
Finally, it is noted that a different system for the arrangement of working hours may be laid down by company-based and sectoral collective labour agreements, depending on the particularities of the sector or the company.
Additional work and overtime work
Information on additional work and overtime work issues
The combined provisions of Article 6 of the NGCLA of 14 February 1984 (No 1770/20-2-2016, Government Gazette, Series II, No 81) and Article 6 of the NGCLA of 26 February 1975, ratified by Article 1 of Law 133/75 and Article 1 of Law 3385/2005, as amended by Article 74(10) and (11) of Law 3863/2010 (Government Gazette, Series I, No 115) show that:
The contractual (collective) weekly working hours of employed persons is set at 40 hours a week.
Exceeding 8 hours a day on a 5-day basis and up to the 9th hour or 6.40 hours a day on a 6-day basis and up to the 8th hour, on condition that there is an excess of 40 hours a week and up to a maximum of 45 hours on a 5-day basis and 48 hours on a 6-day basis, constitutes, in accordance with Article 1 of Law 3385/05 as amended by Article 74(10) and (11) of Law Ν.3863/2010 (Government Gazette, Series I, No 115), additional work, the implementation of which falls under the employer’s discretion.
The 5 hours of additional work on a 5-day basis (from 41 to 45 hours) or 8 hours of additional work on a 6-day basis (from 41 to 48 hours) must be paid at the hourly rate of pay plus 20% and must not be counted towards the permitted overtime limits provided for in the relevant provisions.
Working more than 45 hours a week on a 5-day basis and 48 hours a week on a 6-day basis is considered – in accordance with Article 74(2) of Law 3863/2010 – overtime work and is governed by all the legal consequences, formalities and legalisation procedures. It is paid with the hourly rate of pay increased by 40%.
In fact, exceeding the legal working hours of 9 hours a day, on a 5-day basis, is considered overtime work (Article 6 of the NGCLA of 16-2-1975, SC D 119/1997), as well as the excess of the statutory working hours of 8 hours per day, on a 6-day basis (SC 247/2003).
Non-excess of a fixed overtime work ceiling
Overtime in industries, craft industries, farms and operations in general subject to the provisions of Article 3 of Legislative Decree 515/1970 may not be more than 3 hours per day, as a general rule. Decisions of the Minister for Labour, issued in December and June of each year, lay down overtime ceilings for the entire country or for certain regions. Furthermore, in the categories of companies other than those referred to in Article 3 of Legislative Decree 515/1970, the staff of public limited companies, banks and offices in general, truck drivers, shop employees, service providers, etc. shall not work overtime of more than 2 hours a day and 120 hours per year for each worker (section 2 of subparagraph ΙΑ13, paragraph ΙΑ, Article 1 of Law 4093/2012).
Lawfulness of overtime
Overtime is legal only when registered by the employer in the ERGANI system, before it is carried out {(Article 36 of Law 4488/2017 (Government Gazette, Series I, No 137/13-9-2017), as amended Article 80(1) of L.4144/2013)}
REMUNERATION FOR WORK ON SUNDAYS AND PUBLIC HOLIDAYS
In accordance with the joint decisions of Ministers for Finance and Labour, No 8900/46 and No 25825/51, and Article 2 of Legal Decree 3755/1957 as amended and supplemented by Law 147/73, Article 2 of Law 435/76 and Article 42(2) of Law 4454/2018, employees who are employed on Sundays and public holidays must be given additional remuneration, amounting to 75% of 1/25 of their statutory monthly salary or daily wage.
Regular leave
Information on regular leave issues
Each employed person with a fixed-term or indefinite-term employment relationship is entitled to paid annual leave from the start of employment in a specific company, without the need to complete basic working time (Article 2(1) of Emergency Law No 539/1945, as amended by Article 13(1) of Law 3227/2004 and replaced by Article 1 of Law 3302/2004).
This leave is granted by the employer on a pro rata basis (percentage) in proportion to the length of time the employee has been employed by that employer. The proportion of the granted leave is calculated on the basis of 20 working days of annual leave for a 5-day working week and 24 working days for a 6-day working week, which corresponds to 12 months of continuous employment. The employer is required after expiry of the first calendar year during which the employee was hired, to grant the annual regular paid leave gradually, corresponding to the time of employment in the respective company. During the second calendar year, employees are entitled to regular annual paid leave in proportion to the length of their employment in the business, and it is calculated according to the above. The leave is increased by one (1) working day for each year of employment in addition to the first year, up to twenty-six (26) working days in the case of a 6-day working week or up to twenty-two (22) working days if the business applies a 5-day working week. During the third calendar year and after that, employees will be entitled to their full annual leave at any time in that year.
Workers who have completed 10 years of service with the same employer or 12 years of employment with any employer and under any employment relationship will be entitled to leave of 30 working days if a 6-day working week system is in place and 25 working days if a 5-day working week system is in place (Article 3 of NGCLA 2008/2009). As of 1 January 2008, after completing 25 years of service or previous experience, employees are entitled to 1 additional day of leave, namely a total of 31 working days for a 6-day working week system and 26 working days for a 5-day working week system, respectively.
The period for granting the annual leave is arranged by agreement between the employee and the employer. In any event, the latter is required to grant the leave to the employee who applied for it within 2 months of the request (Article 4(1) of Emergency Law 539/1945).
The regular leave should be granted by the employer in a manner so that it is exhausted by 31 December of each calendar year even if not requested by the worker (Article 4 of Emergency Law 539/1945, as amended by Article 3(15) of Law 4504/1966, in conjunction with Article 2(1) of Emergency Law 539/1945, as in force, Article 1 of Law 3302/2004, as well as Circular No 3392/1-3-2005 on this article). At the end of the calendar year, the claim for leave shall be converted into a monetary claim provided it is not permitted to carry the leave over to a subsequent year, even if this took place with the worker’s consent.
Minimul daily and weekly rest – Maximum employment limits
Information on the minimul daily and weekly rest and the maximum employment limits
For each period of twenty-four (24) hours, starting at 00.01′ and ending at 24.00′, a minimum daily rest of eleven (11) consecutive hours is established (indent 2 of subparagraph IA.14 of Article 1 of Law 4093/2012, which replaced Article 3 of Presidential Decree 88/1999). This minimum daily rest period shall also apply to cases of shift work, as provided for in Presidential Decree 88/99 (interpretation circular No 26352/839/28-11-2012 of the Secretary-General of the Ministry of Labour, Social Security and Welfare). Therefore, from the end of one shift until the start of the next, the worker employed by the shift system will receive a daily rest of 11 consecutive hours.
Workers should be guaranteed a minimum uninterrupted rest period of twenty-four (24) hours per week, which includes in principle Sunday, depending on the provisions of labour law applicable to each category of workers, plus the consecutive daily rest hours laid down in Article 3 of Presidential Decree. 88/1999 (Article 5 of Presidential Decree 88/1999, as replaced by Article 3 of Presidential Decree 76/2005).
According to Article 2 of Presidential Decree 27.06.1932, the 8-hour working day was established for workers in the industrial and craft industries. With the other labour law provisions, the 8-hour working day was extended to all employees in the country.
Pursuant to Article 6 of the NGCLA of 26 February 1975, as interpreted by the relevant court case-law (SC 247/2003, SC 804/2003 and SC 1215/2004), the legal daily working hours were clearly set at 9 hours for a 5-day weekly work system.
Employees’ maximum weekly working time, including any overtime, may not exceed an average of forty-eight (48) hours over a period of no more than four (4) months. Periods of paid annual leave and periods of leave and sickness are not included in the calculation of the average or are neutral (Article 6 of P.D. 88/1999).
Collective redundancies
Information on the definition, the scope and the procedure of collective redundancies
Collective redundancies in Greece are regulated under Law 1387/1983 (Gov. Gazette, Series I, Issue 110), as amended and in force, which radically changed the control procedure concerning collective redundancies. The key cause of this legislative change was the need to adapt Greek legislation to Council Directive 75/129 and the subsequent Directives 92/56 and 98/59.
Definition of collective redundancies
Collective redundancies means dismissals made by establishments or holdings employing more than 20 workers, for reasons that do not relate to the individual workers dismissed, and which in the course of each calendar month exceed the following numerical limits:
- Up to 6 employees for establishments employing 20 to 150 employees.
- 5 % of staff and up to 30 persons for establishments employing more than 150 employees.
Scope
The provisions of Law 1387/1983 apply to staff with employment relationships at all companies of the private sector and of the Greek State, local government and legal persons governed by public law operating in accordance with commercial principles.
With regard to workers dismissed from contracting companies due to the suspension or closure of works for causes demonstrably due to the project owner, where the latter is the Greek State or a legal person governed by public law, the procedures laid down in Articles 3, 4 and 5(1) and (2) apply.
In the case of collective redundancies resulting from discontinuation of the operations of the establishment or holding following a judicial decision, paragraphs 2 and 3 of article 5 are not applied.
The provisions of this law do not apply to: a) workers with a fixed-term employment contract or an employment contract associated with the performance of a certain project or specific works, save where the dismissals occur prior to the expiry of the employment contract or prior to the conclusion of the project or the specific works, b) staff of the Greek State, local government and legal persons governed by public law employed under a private-law employment contract, and c) the crews of vessels.
Employer obligation to provide information and consultation
Before proceeding with collective redundancies, the employer must enter into consultations with the workers’ representatives in order to explore the option of avoiding or reducing dismissals and their adverse effects.
Specifically, the employer must provide all useful information to the representatives of the workers and announce in writing i) the reasons for the redundancies, ii) the number and categories of workers to be made redundant, iii) the number and categories of workers normally employed, iv) the period over which the projected redundancies are to be made, and v) the criteria proposed for the selection of the workers to be made redundant.
The employer’s obligations to consult with and inform workers’ representatives shall apply irrespective of whether the decision on collective redundancies is taken by the employer or by an enterprise controlling the employer.
In the context of consultations with workers’ representatives, the employer may bring to the workers’ attention a social plan for workers to be made redundant, namely measures to mitigate the consequences of dismissal (money for self-insurance, training and counselling for reintegration into the labour market, potential, methods and criteria for their priority reinstatement, etc.).
Copies of the above documents shall be submitted by the employer to the Supreme Labour Council (ASE).
Procedure for collective redundancies
The deadline for consultations between the employer and the workers is 30 days, commencing on the date of the employer’s invitation to attend consultations. The result of the consultations is formulated in a minute submitted by the employer to the Supreme Labour Council.
If the parties reach an agreement, the collective redundancies must be made in accordance with the content of the agreement and must take effect 10 days after the date of submission of the consultation minutes to the Supreme Labour Council.
If the parties do not reach an agreement, the Supreme Labour Council must ascertain, within 10 days, whether the employer complied with the information and consultation obligations. If the Supreme Labour Council rules that the employer complied with these obligations, the redundancies take effect 20 days after the decision is issued. Otherwise, the Supreme Labour Council must extend the consultations or set a deadline for the performance of the aforementioned obligations on the part of the employer. If the Supreme Labour Council issues a new decision ascertaining that the employer complied with these obligations, the redundancies take effect 20 days after the issuance of the decision. In any event, the redundancies take effect 60 days after the communication of the consultation minutes.
Collective redundancies made in breach of the provisions of this law shall be null and void. The provisions on the valid termination of the employment relationship and the compensation payable apply to collective redundancies.
The authority competent for collective redundancies is the Labour Protection Department (III), Directorate of Collective Arrangements, Ministry of Labour and Social Affairs, 29 Stadiou Street, Athens, GR-10559.
Reference link： https://www.gov.gr/en/sdg/work-and-retirement/terms-and-conditions-of-employment
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Greece Social Security & Labor Law – Law 4997/2022
Partial Translation Disclaimer:
This is a partial English translation of Law 4997/2022. It highlights selected provisions relevant to employers and EOR compliance. The official Greek text remains the authoritative source: Government Gazette PDF
Article 1 – Purpose
The purpose of this Law is to rationalize, simplify, and modernize the Greek social security and pension legislative framework.
The Law also aims to strengthen protection for vulnerable social groups and enhance the coherence of social policy implementation.
The provisions herein supplement, amend, and coordinate existing social security, pension, and labor legislation.
Article 2 – Scope
This Law applies to all social security institutions, including the Unified Social Security Fund (e‑EFKA) and associated entities.
It governs relationships relating to social security contributions, benefit entitlements, and administrative obligations of employers, employees, and other liable parties.
All previous conflicting provisions are repealed or amended to the extent inconsistent with this Law.
Article 3 – Definitions
For the purposes of this Law:
“Employer” means any natural or legal person liable to contribute to social security or pension funds for employed persons.
“Employee” means any person employed under a contract of employment, including full-time, part-time, and fixed-term employment.
“Contribution” means the mandatory payments to social security or pension funds calculated on wages, salaries, or other remunerations.
“Vulnerable groups” refers to persons meeting eligibility criteria for social support, as defined in subsequent Articles.
Article 4 – Social Security Institutions
e‑EFKA is the primary social security body for administering insurance, contribution collection, and benefit payments.
Associated social security entities shall act under the coordination and supervision of e‑EFKA, including funds for special occupations and supplementary schemes.
The governance, management, and auditing of these institutions are subject to provisions of this Law and applicable regulations.
Article 5 – Permanent Reduction of Social Security Contributions
Effective 1 January 2023, the following contribution rates are permanently established:
a. Unemployment insurance contribution: 2.40% of wages (1.20% employer / 1.20% employee).
b. Employer Insolvency Protection Fund: 0.15% paid by employer.
c. Single Account for Implementation of Social Policies: 0.16% (0.06% employer / 0.10% employee).
d. Former Labor Home Organization contribution: 0.35% paid by employee.Employers are responsible for withholding and remitting contributions in accordance with statutory deadlines.
Non-compliance may result in penalties and interest as provided in Articles 54 and 68.
Article 6 – Statute of Limitations for Claims
Claims by social security institutions for unpaid contributions are subject to a statute of limitations of ten (10) years, starting from the first day of the year following the year in which contributions were due.
Effective 1 January 2026, the statute of limitations shall be reduced to five (5) years.
Any periods of concealment or fraudulent behavior extend the limitation period.
Article 7 – Settlement of Social Security Debts
Employers and other liable parties may apply for structured repayment of overdue debts to social security institutions.
Payment plans may range from 2 to 24 monthly installments, or up to 48 installments for verified audit cases.
The minimum monthly installment is EUR 50.
Applications must be submitted electronically, and approved schedules are binding.
Article 8 – Administrative Oversight and Verification
e‑EFKA and related entities may audit, verify, and request documentation to ensure proper contribution calculation and remittance.
Employers are obliged to maintain accurate records of payroll, contributions, and employee data for a minimum of ten (10) years.
False declarations or failure to provide records may incur administrative and financial penalties.
Article 9 – Incentives for Conversion of Part-Time to Full-Time Employment
Employers converting part-time employment contracts to full-time contracts during 1 January 2023 – 31 December 2023 are eligible for a subsidy.
The subsidy covers 40% of both employer and employee social security contributions for one year from the date of conversion.
Eligibility conditions include:
a. Compliance with social security and tax obligations.
b. Retention of employees for a minimum period of one year after conversion.
c. Average workforce size maintained over the support period.
Article 10 – Social Benefits and Vulnerable Groups
Social benefits provided under this Law to vulnerable groups include:
a. Cash support payments.
b. Special allowances for low-income, elderly, or disabled persons.
c. Emergency support in cases of natural disasters or crises.Eligibility and amounts are determined by relevant regulations and administrative decisions.
Payment is administered electronically through designated banking or governmental channels.
Article 11 – Pension Indexation
All pensions administered under e‑EFKA shall be annually adjusted based on economic indicators, including:
a. Gross Domestic Product (GDP) growth;
b. Consumer Price Index (CPI);
c. Inflation rates.The Minister of Labor and Social Affairs shall issue an annual decree specifying the percentage adjustment.
Adjustments are automatically applied to all pension payments and communicated to beneficiaries in advance.
Article 12 – Transitional Pension Provisions
Pensioners whose retirement commenced prior to 1 January 2023 shall be subject to the new indexation system without affecting accrued rights.
Existing special pensions for hazardous or difficult occupations shall remain in effect until amended by subsequent regulations.
Any reduction due to recalculation under the new system must respect minimum guaranteed pension levels.
Article 13 – Special Occupational Funds
Special occupational pension and social security funds may continue to operate under the supervision of e‑EFKA.
Fund assets, liabilities, and contribution rates must be harmonized with general social security provisions.
Employers contributing to special funds are responsible for correct calculation and remittance of contributions.
Article 14 – Social Security Exemptions and Allowances
Specific allowances or contributions may be exempted under conditions set by law.
Only expressly authorized exemptions apply; any benefit outside the statutory framework is considered taxable and subject to contribution.
Employers are obliged to deduct contributions appropriately, even for exempted payments.
Article 15 – Electronic Contribution Reporting
All employers must submit contribution declarations electronically through e‑EFKA’s designated platform.
Reports must include:
a. Employee identification;
b. Wages and other remuneration;
c. Employer and employee contributions;
d. Any exemptions or special allowances applied.Failure to report electronically constitutes a violation subject to penalties under Article 54.
Article 16 – Employer Liability for Contributions
Employers are jointly and severally liable for the correct calculation, withholding, and remittance of all social security contributions.
Liability extends to both mandatory contributions and any approved exemptions.
Employers failing to comply may incur fines, interest, and administrative sanctions.
Article 17 – Imputed Income for Non-Declared Remuneration
Where remuneration or benefits in kind cannot be verified, e‑EFKA may calculate imputed contributions based on:
a. Employee position and role;
b. Industry standards;
c. Average wage benchmarks.Imputed contributions are treated as legally owed, with penalties for underpayment.
Article 18 – Adjustment of Benefits for Vulnerable Groups
All social benefits to vulnerable groups shall be indexed annually based on official inflation and economic indicators.
e‑EFKA may issue administrative guidelines defining amounts and eligibility.
Employers providing top-ups or co-contributions must report amounts accurately to ensure transparency.
Article 19 – Employer Reporting Obligations
Employers must maintain and submit the following information to e‑EFKA:
a. Payroll records;
b. Contribution payments;
c. Employee leave and absence records;
d. Maternity, paternity, and family-related allowances.Records must be kept for a minimum of ten (10) years.
Non-compliance may result in administrative fines and audit measures.
Article 20 – Social Security Contribution Payments Deadlines
Employer and employee contributions must be paid monthly, within the deadlines set by e‑EFKA.
Late payments accrue interest and penalties calculated daily until settlement.
Payment may be made electronically via approved channels; manual payments require prior authorization.
Partial payment without authorization does not release liability for the remaining contribution amount.
Article 21 – Deductible Business Expenses for Employers
Employers may deduct expenses that are:
a. Directly related to the employment of personnel;
b. Properly documented in accounting books;
c. Compliant with social security and tax regulations.Non-deductible expenses include: fines, penalties, or undocumented payments.
EOR or third-party service providers must ensure that all reimbursed payroll expenses meet these criteria.
Article 22 – Non-Deductible Expenses
Expenses not meeting statutory conditions shall be treated as non-deductible for tax and social security purposes.
Any misclassification may trigger additional tax liability and penalties.
Employers and EORs remain jointly responsible for accurate classification.
Article 23 – Documentation Obligations
Employers and responsible parties must maintain records to substantiate:
a. Employee wages and benefits;
b. Social security contributions;
c. Leave, bonuses, and allowances.Records must be preserved for ten (10) years and made available to authorities upon request.
In the event of audits, incomplete records may result in fines and imputed contributions.
Article 24 – Progressive Contribution Rates
Employee and employer contributions are applied progressively according to statutory wage brackets.
Contribution rates are set annually by e‑EFKA and published in official bulletins.
Employers and EORs must apply these rates when calculating payroll deductions.
Article 25 – Social Security Coverage for Part-Time and Fixed-Term Employees
All part-time and fixed-term employees are covered by mandatory social security contributions proportionate to their employment fraction.
Contributions must reflect actual hours worked or equivalent contractual commitments.
EORs must ensure proper calculation and remittance for non-full-time personnel.
Article 26 – Special Social Insurance Accounts
Certain special accounts exist to cover:
a. Unemployment benefits;
b. Occupational risk insurance;
c. Employer insolvency protection.Contributions to these accounts are mandatory and integrated within payroll reporting systems.
Article 27 – Penalties for Late Payment or Non-Payment
Employers failing to pay contributions on time are liable for:
a. Interest accrued daily until settlement;
b. Administrative fines as specified in Article 54;
c. Possible joint liability in case of EOR arrangements.Penalties apply irrespective of whether the employee ultimately receives social benefits.
Article 28 – Social Security Audits
e‑EFKA may conduct audits of employer and EOR records, including:
a. Payroll registers;
b. Contribution payment confirmations;
c. Documentation of benefits in kind.Audits may be initiated randomly, periodically, or following a reported discrepancy.
Employers and EORs must provide full cooperation and documentation.
Article 29 – Employer Reporting for Maternity and Family Benefits
Employers must report employee leave for:
a. Maternity;
b. Paternity;
c. Adoption;
d. Family care allowances.Reports must include duration, payments made, and social security contributions applied.
Timely reporting is a prerequisite for employee eligibility for government-provided top-ups or benefits.
Article 30 – Electronic Filing Requirements
All employers and EORs are required to submit contributions, payroll records, and employee benefit reports electronically through e‑EFKA platforms.
Paper submissions are allowed only under exceptional circumstances authorized by e‑EFKA.
Failure to comply may result in fines, audit, and the imposition of imputed contributions.
Article 31 – Verification of Contribution Payments
e‑EFKA may request verification of all employer and EOR contribution payments at any time.
Verification includes comparison of payroll reports, bank remittances, and electronic submissions.
Any discrepancies must be corrected immediately, with applicable penalties applied for underpayment or misreporting.
Article 32 – Contributions for Temporary Employees
Temporary, seasonal, and casual employees are subject to mandatory social security contributions proportionate to actual employment periods.
Employers or EORs must calculate contributions based on days or hours worked.
Partial or incorrect contribution reporting may result in fines and interest as specified in Articles 27 and 68.
Article 33 – Employer Record-Keeping Obligations
Employers must maintain detailed records of:
a. Employee contracts;
b. Wages and benefits;
c. Social security contributions;
d. Leave, overtime, and allowances.Records must be preserved for ten (10) years and provided to e‑EFKA or auditing authorities upon request.
Failure to maintain proper records constitutes an administrative violation.
Article 34 – Audit Powers of e‑EFKA
e‑EFKA has the authority to:
a. Conduct on-site audits of employer and EOR records;
b. Request clarification or additional documentation;
c. Recalculate contributions and assess additional liability.Audits may be initiated randomly, periodically, or following suspected non-compliance.
Employers and EORs are legally obligated to fully cooperate.
Article 35 – Social Security Contributions for Directors and Board Members
Contributions are required for remuneration paid to directors and board members of legal entities, unless explicitly exempted.
Calculation of contributions follows the same principles as for regular employees.
EORs managing payroll for executives must ensure accurate application of contribution rates.
Article 36 – Social Security Contribution Recovery
e‑EFKA may recover unpaid contributions via administrative action, offsetting, or legal proceedings.
Recovery includes principal contributions, accrued interest, and penalties.
Employers and EORs remain jointly liable for recovery amounts.
Article 37 – Social Security Contribution Reporting Frequency
Contributions must be reported monthly by all employers and EORs.
Reports must include:
a. Employee identification;
b. Gross wages;
c. Contribution amounts;
d. Any applicable exemptions or adjustments.Late or incomplete reports are subject to fines and potential audits.
Article 38 – Social Security Contribution Base
The contribution base for employees includes all remuneration from employment, including:
a. Wages and salaries;
b. Bonuses, allowances, and overtime;
c. Benefits in kind.Contributions are calculated on the total base, subject to statutory maximums.
EORs must ensure proper inclusion of all remuneration elements.
Article 39 – Adjustment of Contribution Rates
The Minister of Labor and Social Affairs may adjust contribution rates annually based on economic conditions and actuarial analysis.
Adjustments apply to all employers and EORs without exception.
Rates are published officially and must be applied to payroll calculations from the effective date.
Article 40 – Penalties for Misreporting
Employers and EORs providing false or inaccurate contribution reports are liable for administrative fines.
Repeated or intentional misreporting may trigger criminal liability under Greek law.
Penalties include:
a. Fines proportional to unpaid contributions;
b. Interest on delayed payments;
c. Possible suspension of social security privileges.Article 41 – Social Security Contribution Refunds
Employers and EORs may apply for refunds of overpaid contributions.
Refund requests must be submitted within five (5) years from the date of payment.
Refunds are credited to the original payer or, if authorized, to the employee.
e‑EFKA may verify claims before approval.
Article 42 – Compliance Monitoring
e‑EFKA shall continuously monitor employer and EOR compliance with contribution, reporting, and record-keeping obligations.
Non-compliance detected via electronic systems may trigger immediate corrective actions.
Repeat violations increase fines and potential audit frequency.
Article 43 – Extension of Special Maternity Protection Leave
Special maternity leave entitlement is extended to nine (9) months.
Applies to:
a. Biological mothers;
b. Mothers through surrogacy;
c. Adoptive mothers with children up to age eight (8).Up to seven (7) months may be transferred to fathers under certain employment conditions.
Employers must report leave and ensure employee eligibility for state benefits.
Article 44 – Anti-Discrimination Provisions
Employment discrimination based on health conditions, including HIV status, is prohibited.
Employers and EORs must provide equal treatment in terms of employment, remuneration, and social security contributions.
Violations are subject to administrative fines and corrective orders.
Article 45 – Electronic Communication Requirements
All official communications between e‑EFKA and employers/EORs shall be conducted electronically.
This includes contribution submissions, reporting of benefits, and administrative notifications.
Paper communications are permitted only with prior e‑EFKA approval.
Article 46 – Temporary Measures for Vulnerable Groups
e‑EFKA may issue temporary benefit adjustments or top-ups for socially vulnerable groups during crises.
Employers must accurately report payments to ensure proper allocation.
Temporary measures are binding only for the specified period and do not alter statutory contribution obligations.
Article 47 – Audits and Investigations
e‑EFKA may initiate audits at any time for:
a. Payroll accuracy;
b. Social security contributions;
c. Employee benefit compliance.Audits may include on-site inspections and document verification.
Employers and EORs must provide unrestricted access to records.
Article 48 – Transitional Provisions for Previous Laws
Provisions of previous social security laws remain in effect until explicitly amended by this Law.
Employers must comply with both existing transitional regulations and new provisions concurrently.
Any conflicts between older and new provisions are resolved in favor of this Law.
Article 49 – Penalties for Non-Compliance
Non-compliance with any provision of this Law exposes employers and EORs to:
a. Administrative fines;
b. Interest on unpaid contributions;
c. Joint liability for third-party payroll arrangements.Repeated violations may result in more severe administrative or legal measures.
Article 50 – Entry into Force
This Law enters into force the day after its publication in the Government Gazette (ΦΕΚ Α’ 219/25‑11‑2022).
All provisions apply to contributions, pensions, and employer obligations from the effective date, unless a later date is specified for individual Articles.
Employers and EORs must ensure immediate compliance with all applicable Articles.
Greece Unified Social Security System – Law 4387/2016
Law 4387/2016 (FEK A’ 85/12-05-2016)
Unified Social Security System (EFKA)
Selected Articles – English Translation (Employer & EOR Relevant)
Article 1 – Purpose and Principles of the Unified Social Security System
This Law establishes a Unified Social Security System aiming to provide social protection, dignity of living, and income security through principles of equality, proportionality, solidarity, and social justice.
Social security constitutes a fundamental right for all persons legally residing or working in Greece.
The State shall ensure the sustainability, effectiveness, and universality of the Unified Social Security System.
Article 2 – Scope of Application
The provisions of this Law apply to all employees, employers, self-employed persons, and other insured persons subject to compulsory social security in Greece.
All insured persons shall be subject to uniform rules regarding insurance coverage, contributions, and benefits, unless otherwise provided by law.
Article 3 – Insured Persons
Persons providing dependent employment services in Greece shall be compulsorily insured under the Unified Social Security System.
Insurance coverage shall commence on the first day of employment, irrespective of the duration or form of the employment contract.
Employers are responsible for ensuring the registration of insured persons with the competent social security authority.
Article 4 – Establishment of the Unified Social Security Fund (EFKA)
A single legal entity under public law, named the Unified Social Security Fund (EFKA), is hereby established.
EFKA shall assume all responsibilities relating to the collection of social security contributions and the administration of insurance benefits.
All former social security funds are integrated into EFKA.
Article 8 – Mandatory Insurance
Insurance under EFKA is compulsory for all persons falling within the scope of this Law.
Waiver, exclusion, or limitation of compulsory insurance is prohibited unless expressly provided by law.
Article 38 – Main Pension Contributions for Salaried Employees
Main pension contributions for salaried employees shall be calculated as a percentage of insurable earnings.
Contributions are payable by both the employer and the employee.
The contribution base shall be the gross salary, subject to the maximum insurable earnings ceiling established annually by law.
Employers shall withhold the employee’s portion and remit the total contribution to EFKA.
Contributions shall be payable for each employment relationship.
Article 39 – Insurable Earnings
Insurable earnings include all forms of remuneration paid in cash or in kind arising from dependent employment.
Earnings exceeding the statutory contribution ceiling are exempt from additional social security contributions but remain subject to income tax.
Article 40 – Multiple Employment Relationships
Where an insured person is employed by more than one employer, social security contributions shall be payable separately for each employment relationship.
The total contribution obligation shall not exceed the maximum statutory contribution ceiling.
Article 41 – Employer Obligations
Employers are required to:
Register employees with EFKA prior to or upon commencement of employment
Accurately calculate social security contributions
Withhold employee contributions from salary
Remit employer and employee contributions within statutory deadlines
Employers are jointly and severally liable for the payment of social security contributions.
Article 42 – Contribution Declaration and Reporting
Employers shall submit periodic contribution declarations through the electronic systems designated by EFKA.
Declarations must accurately reflect wages, contribution bases, and applicable contribution rates.
Article 43 – Payment Deadlines
Social security contributions shall be paid within the deadlines prescribed by ministerial decisions.
Late payment results in statutory surcharges and penalties.
EFKA is empowered to take enforcement measures for overdue contributions.
Article 44 – Liability and Penalties
Employers failing to comply with contribution obligations shall be subject to administrative penalties.
Penalties include surcharges, fines, and enforcement measures under public revenue collection rules.
Article 45 – Joint Liability
Employers and insured persons are jointly liable for unpaid social security contributions.
EFKA may pursue recovery against either party in accordance with the law.
Article 53 – Collection of Contributions
EFKA is responsible for the assessment and collection of all compulsory social security contributions.
Contributions are collected through electronic payment systems and enforced collection procedures where necessary.
Article 97 – Auxiliary and Supplementary Insurance
Auxiliary pension insurance schemes operate alongside main pension insurance.
Contributions for auxiliary insurance are compulsory where provided by law.
Employers shall withhold and remit auxiliary insurance contributions in accordance with statutory rates.
Article 101 – Healthcare Contributions
Healthcare insurance contributions are compulsory for insured employees.
Contributions are calculated on insurable earnings and shared between employer and employee.
Employers are responsible for collection and remittance.
Article 104 – Transitional Provisions
Existing insurance rights and obligations are preserved during the transition to the unified system.
Employers remain subject to contribution obligations without interruption.
Article 115 – Implementing Regulations
The details for implementation of this Law shall be determined by ministerial decisions.
Contribution rates, ceilings, reporting formats, and deadlines may be adjusted by secondary legislation.
Employer & EOR Compliance Interpretation
Under Law 4387/2016, an Employer of Record operating in Greece must:
Register employees with EFKA
Calculate and remit mandatory social security contributions
Withhold employee contributions
Ensure monthly reporting and payment compliance
Remain jointly liable for unpaid contributions
This English version is an unofficial translation of selected provisions of Law 4387/2016 (Government Gazette FEK A’ 85/12-05-2016). The official legal text is published in Greek and prevails in case of interpretation.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Greek Income Tax Code
Selected Articles – English Translation (Employer & EOR Relevant)
Article 1 – Scope of the Income Tax Code
This Law governs the taxation of income earned by individuals and legal entities in Greece.
Income tax applies to income arising in Greece and, in certain cases, to worldwide income in accordance with tax residence rules.
Article 2 – Definitions
For the purposes of this Law:
“Taxpayer” means any individual or legal entity subject to income tax.
“Employer” means any natural or legal person paying remuneration arising from dependent employment.
“Employment income” includes salaries, wages, allowances, benefits in cash or in kind, and any other remuneration arising from dependent employment.
Article 3 – Tax Residence of Individuals
An individual is considered tax resident in Greece if:
Their permanent or principal residence is in Greece; or
They spend more than 183 days in Greece within any twelve-month period.
Greek tax residents are taxed on worldwide income.
Non-residents are taxed only on income sourced in Greece.
Article 4 – Tax Residence of Legal Entities
A legal entity is considered tax resident in Greece if:
It has its registered seat or place of effective management in Greece.
Greek tax resident entities are subject to corporate income tax on worldwide income.
EOR relevance:
Defines when an EOR entity itself becomes fully taxable in Greece and subject to local payroll and reporting obligations.
Article 5 – Source of Employment Income
Employment income is considered Greek-sourced when the employment is exercised in Greece.
Employment income paid by a Greek employer is considered Greek-sourced irrespective of the place of payment.
Article 6 – Permanent Establishment
A permanent establishment exists when a foreign entity maintains a fixed place of business in Greece.
A dependent agent habitually concluding contracts on behalf of an entity may create a permanent establishment.
EOR relevance:
Critical for distinguishing EOR vs. direct employment and avoiding unintended permanent establishment risks for clients.
Article 7 – Categories of Taxable Income
Taxable income is classified into the following categories:
Income from employment and pensions
Income from business activity
Income from capital
Capital gains
(This Law section establishes employment income as a distinct taxable category.)
Article 8 – Tax Year
The tax year coincides with the calendar year.
Employment income is assessed within the tax year in which it is paid or accrued.
EOR relevance:
Determines payroll cut-off, annual reconciliation, and timing of employee tax reporting.
Article 9 – Avoidance of Double Taxation
Income taxed abroad may be credited against Greek tax liability, subject to applicable treaties.
Tax credit shall not exceed the Greek tax attributable to such income.
EOR relevance:
Relevant for expats, cross-border assignments, and split-payroll arrangements managed by EORs.
Article 10 – Interpretation of Tax Treaties
International tax treaties ratified by Greece prevail over domestic tax law.
Treaty provisions apply directly where relevant.
EOR relevance:
Supports treaty-based tax relief claims for foreign employees hired via EOR.
Article 11 – Determination of Income
Income is taxable regardless of the form in which it is received.
Benefits, allowances, and non-cash remuneration fall within taxable income unless expressly exempt.
EOR relevance:
Ensures benefits-in-kind provided via EOR are properly captured in payroll taxation.
Article 12 – Income from Employment and Pensions
Income from employment includes any form of remuneration paid in return for dependent services.
The following are considered employment income:
Salaries and wages
Bonuses and allowances
Benefits in kind
Overtime compensation
Employment income is taxable at the time it becomes payable.
Article 13 – Benefits in Kind
Benefits in kind provided to employees are taxable as employment income when their total annual value exceeds the statutory threshold.
Taxable benefits include, but are not limited to:
Company vehicles
Housing provided by the employer
Loans granted at below-market interest
Employers are responsible for including taxable benefits in payroll tax calculations.
Article 14 – Exempt Employment Income
The following are exempt from income tax, subject to statutory limits:
Certain social security benefits
Specific allowances expressly exempted by law
Reimbursements of documented business expenses
Article 15 – Determination of Taxable Employment Income
Taxable employment income is calculated after deduction of:
Mandatory social security contributions paid by the employee
Statutory tax credits where applicable
Employers must apply deductions at payroll level when withholding tax.
Article 16 – Tax Credits
Tax credits apply to individuals earning employment income.
The amount of the credit depends on income level and number of dependent children.
Employers must take applicable tax credits into account when calculating monthly withholding.
Article 17 – Imputed Income
Where actual income cannot be determined, imputed income rules may apply.
Tax authorities may assess income based on indirect indicators.
EOR relevance:
Relevant in audits involving undeclared benefits, housing, or allowances.
Article 18 – Time of Taxation
Employment income is taxable in the tax year in which it is paid or made available to the employee.
Deferred payments are taxed when received.
Article 20 – Obligation to Withhold Tax
Employers are required to withhold income tax on employment income at the time of payment.
Withholding tax constitutes an advance payment of the employee’s final income tax liability.
Failure to withhold tax gives rise to employer liability.
Article 21 – Business Expenses (Employer Perspective)
Expenses are deductible if:
Incurred in the interest of the business
Properly documented
Recorded in accounting books
EOR relevance:
Determines whether payroll costs, benefits, and allowances paid by EOR are deductible.
Article 22 – Non-Deductible Expenses
Expenses not complying with statutory conditions are non-deductible.
Fines, penalties, and non-documented payments are excluded.
EOR relevance:
Impacts employer cost structure and risk pricing for EOR services.
Article 23 – Documentation Obligations
Taxpayers must maintain adequate documentation supporting income and expenses.
Payroll records must be retained for statutory audit periods.
EOR relevance:
Supports record-keeping obligations for payroll, benefits, and tax audits.
Article 24 – Progressive Income Tax Rates
Employment income is subject to progressive tax rates as defined by law.
The applicable rates are determined annually and applied cumulatively.
Employers shall apply the progressive scale when calculating payroll withholding.
Article 36 – Tax Audit Powers
Tax authorities may audit any taxpayer subject to income tax.
Employers must provide payroll, withholding, and employee records upon request.
EOR relevance:
Directly affects EOR audit exposure and compliance processes.
Article 54 – Administrative Penalties
Penalties apply for:
Late filings
Incorrect declarations
Failure to maintain records
EOR relevance:
Defines financial exposure for compliance failures.
Article 57 – Joint Liability
Persons responsible for tax withholding may be jointly liable with the taxpayer.
Liability extends to legal representatives.
EOR relevance:
Core EOR risk article — confirms EOR legal exposure as withholding agent.
Article 59 – Withholding of Income Tax
Income tax shall be withheld by the payer of income.
Withholding applies to:
Employment income
Pensions
The withheld amount must be remitted to the tax authorities within statutory deadlines.
Article 60 – Responsibility for Withholding
The person obligated to withhold tax is responsible for:
Accurate calculation
Timely withholding
Timely remittance to the tax authorities
Employers are jointly liable for unpaid withholding tax.
Article 61 – Filing and Payment of Withheld Tax
Employers must submit periodic withholding tax declarations.
Withheld tax must be paid monthly or within deadlines set by the tax authority.
Annual reporting of employment income is mandatory.
Article 62 – Annual Income Statements
Employers must submit annual income statements detailing:
Gross remuneration
Withheld income tax
Social security contributions
Statements must be submitted electronically.
Article 64 – Penalties for Non-Compliance
Failure to withhold or remit income tax results in:
Administrative fines
Interest and surcharges
Penalties apply irrespective of whether the employee ultimately pays the tax.
Article 66 – Employer Liability
Employers are liable for any income tax that should have been withheld but was not.
Tax authorities may pursue recovery directly from the employer.
Article 67 – Statute of Limitations
Tax claims are subject to statutory limitation periods.
The limitation period may be extended in cases of concealment.
EOR relevance:
Defines how long payroll and tax risks remain open.
Article 68 – Interest on Late Payment
Late payment of tax results in statutory interest.
Interest accrues until full settlement.
EOR relevance:
Direct cost exposure in delayed remittance scenarios.
Article 69 – Final Tax Assessment
Withholding tax is credited against the employee’s final annual tax liability.
Any excess withholding is refundable through the annual tax return process.
Article 71 – Electronic Filing Obligations
Tax declarations must be submitted electronically where prescribed.
Employers must comply with electronic payroll and tax reporting systems.
EOR relevance:
Supports mandatory use of Greek payroll and tax platforms.
Article 72 – Transitional Provisions
Existing payroll withholding obligations remain in force until replaced by updated regulations.
Employers must comply with amended tax rates from the effective date specified by law.
Employer & EOR Compliance Summary (Income Tax Code)
Under Law 4172/2013, an Employer of Record in Greece must:
Determine tax residence where relevant
Calculate taxable employment income
Withhold personal income tax monthly
Apply tax credits and exemptions
Remit withholding tax to the tax authority
Submit monthly and annual payroll tax filings
Remain liable for under-withholding or non-payment
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
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Regulation Updates in Greece
Press Release: Digital Relaunch at e-EFKA - Presentation of the new Integrated Information System
What it is: A government press release announces the presentation of a new Integrated Information System as part of the Digital Relaunch at e-EFKA.
What it changes: The system implements full digitalization of the Analytical Periodic Statement and introduces stronger controls that affect payroll reporting and social contributions monitoring for employers.
Who is affected:
- Employers
What employers should do:
- Prepare for the transition to the new Integrated Information System
- Align payroll reporting and social contributions monitoring processes with the new digitalized requirements
Notes: Effective month: 2026-05. Manual verification recommended.
Discover the latest employment and compliance updates in Greece — helping you stay ahead in a changing regulatory landscape.