A Guide on How to Hire Employees in Greece
May 14, 2020
Hire in Greece
Greece PEO &
Employer of Record
Hire & manage teams remotely in Greece without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Business Language
Greek
Salary Currency
Euro (EUR)
Payroll tax
23.33% - 24.74%
Payroll Cycle
Monthly
Time zone
UTC +2
Capital city
Athens
Hire Employees in Greece
NNRoad provides employer of record (EOR) & professional employment organization (PEO) services to ensure that your business in Greece complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.
The NNRoad Advantage ☺
Pay as you go
No set-up or overhead costs to global expansion.
Global account manager
One point of contact for all of our 50+ serviced countries and regions.
Compliance
Ensured compliant contracts and operations.
Fast Onboarding
Start working with your remote employees/contractors within a week.
Foreigner Visas
NNRoad assists with overseas foreign hires visa needs.
Platform
Access your payroll reports and employee pay stubs on our portal.
Employer of Record in Greece
Employer of Record (EOR) services are for companies who do not have a legal entity in Greece, but who want to hire localy. Employment and full liability are outsourced to NNRoad.
01.
Candidate Selection
You interviews & select the candidates you want to hire in Greece.
02.
Employee Onboarding
We sign a local labor contract with your employees based in Greece.
03.
Compliance & Payroll
We manage monthly payroll, mandatory benefits & all HR compliance in Greece.
04.
Payroll Reporting
See all payroll reports on our platform & focus on your business in Greece.
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Greece
Professional Employment Organization (PEO) services are for companies who have a legal entity in Greece, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
01.
Compliance & Payroll
We manage monthly payroll, mandatory benefits & all HR compliance in Greece.
02.
Payroll Reporting
See all payroll reports on our platform & focus on your business in Greece.
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Greece
Employee Income Taxes:
Individual income tax rates in Greece are based on progressive tax brackets.
Income tax depends on the source of the income (e.g. employment, rental) and is calculated as below.
Tax Brackets
9%: 0 – 10,000 EUR
22%: 10,000 – 20,000 EUR
28%: 20,000 – 30,000 EUR
36%: 30,000 – 40,000 EUR
44%: Over 40,000 EUR
22%: 10,000 – 20,000 EUR
28%: 20,000 – 30,000 EUR
36%: 30,000 – 40,000 EUR
44%: Over 40,000 EUR
Sample Calculation
Yearly income = 35,000 EUR
9% * 10,000 = 900
22% * 10,000 = 2,200
28% * 10,000 = 2,800
36% * 5,000 = 1,800
900+2200+2800+1800 = 7700
Yearly income tax = 7,700 EUR
9% * 10,000 = 900
22% * 10,000 = 2,200
28% * 10,000 = 2,800
36% * 5,000 = 1,800
900+2200+2800+1800 = 7700
Yearly income tax = 7,700 EUR
Employer Costs in Greece
Employer Contribution
13.33% – Pension fund
4.3% – Health care
0.25% – Health in benefit
3.25% – Supplementary insurance
1.41% – Additional contributions
Total employment cost: 22.54%
Employee Contribution
6.67% – Pension fund
2.15% – Health care
0.40% – Health in benefit
3.25% – Supplementary insurance
1.65% – Additional contributions
Total employment cost: 14.12%
Benefits & Insurance in Greece
Pension Fund
In general, it consists of three parts:
1. Earnings-related primary pension;
2. Earnings-related supplementary pension;
3. Minimum pension benefits
From 1 Jan 2022, Greek companies must enroll new hires in a mandatory individual defined contribution (DC) pension fund — the Hellenic Auxiliary Pensions Defined Contributions Fund (TEKA) — under measures aimed at improving pension sustainability and benefits.
Healthcare Insurance
In Greece, healthcare insurance is mandatory for all residents, both Greek citizens and legal residents. The main healthcare insurance scheme in Greece is the National Organization for Healthcare Provision (EOPYY), which is a public health insurance organization. EOPYY provides coverage for a wide range of healthcare services, including visits to general practitioners, specialist consultations, hospitalization, and medication.
Employees and self-employed individuals contribute to EOPYY through their social security contributions, while unemployed individuals and certain other groups are covered by the state. The cost of healthcare insurance contributions is based on income, and individuals receive a healthcare card that enables them to access services covered by the scheme.
In addition to the public healthcare insurance system, many individuals in Greece also choose to supplement their coverage with private health insurance. Private insurance plans offer additional benefits, such as access to private clinics and hospitals, shorter waiting times, and coverage for specialized treatments not covered by the public system. Private health insurance is typically offered by various insurance companies and can be customized based on individual needs and preferences.
Working Hours in Greece
Working Hours Per Week
An employee can work up to 40 hours per weekday which can be allocated to 5 days (i.e. 8 hours per day) or 6 days per week (i.e. 6 hours and 40 minutes per day), in accordance with the applicable law. The maximum daily working time is 12 hours (inclusive OT).
Overtime
Employment exceeding 45 hours per week for five business days or 48 hours a week for businesses with a six-day work system is considered overtime. Employees are permitted to work up to 3 hours daily beyond the normal working hours.
Employees who work overtime are entitled to a 40% increased rate of pay for each hour of the work performed during overtime.
Termination Laws in Greece
For termination of a fixed-term contract, the employer is obliged to pay for the rest of the term.
For terminating the indefinite contract, the employer needs to issue notice to the employee as per employees’ service years as follows:
Severance
In the case of an open-ended employment agreement terminated by the employer, the severance pay is calculated accordingly:
| Employment period (years) | Severance pay | Severance Pay if employer does not comply with the period of notice |
| 1-4 | 1 month | 2 months |
| 4-6 | 1.5 months | 3 months |
| 6-8 | 2 months | 4 months |
| 8-10 | 2.5 months | 5 months |
| 10-11 | 3 months | 6 months |
| 11-12 | 3.5 months | 7 months |
| 12-13 | 4 months | 8 months |
| 13-14 | 4.5 months | 9 months |
| 14-15 | 5 months | 10 months |
| 15-16 | 5.5 months | 11 months |
| 16 and above | 6 months | 12 months |
Employment Contract in Greece
Employment Contract
Labor contracts may be divided into two categories:
1. Fixed-term contract: the total duration of a single fixed-term contract is 3 years and the number of renewals allowed within a 3-year period is 3 successive contracts;
2. Full time employment contract: This contract is drawn for an indefinite period.
Probation Period
Employment with an open-ended employment agreement is considered to be employed 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.
Types of Leaves in Greece
Annual Leave
Employees on a five-day workweek are entitled to 20 days of leave, while employees working for six days a week receive 24 days. The leaves increase by one for each year that follows in addition to the first up to 22 days if the employee works a five-day week, 26 days for employees who work six days a week.
Sick Leave
The length of sick leave can vary and generally depends upon service and industry. Employees are generally paid 50% of their wages during the first three days of sick leave. However, from the 4th day of leave, employees are eligible to be paid for sick pay by the local social insurance.
Maternity Leave
Female employees are allowed 17 weeks of paid leave.
Paternity Leave
Fathers are allowed 14 days of leave.
Unpaid Childcare Leave
4 months of child care leave is allowed which can be taken consecutively or intermittently until a child reaches 8 years of age.
Public Holidays in Greece
Public Holidays
Resources
How to Start Your Business in Greece
May 23, 2017