Greece Payroll and EOR Hiring Support for EFKA Contributions, Income Tax Withholding, and Labor Compliance

NNRoad is a Greece payroll service provider focused on delivering accurate, compliant payroll services for companies employing staff in Greece. Our Greece payroll solutions cover gross-to-net calculations for monthly salaries, EFKA social security contributions, progressive income tax withholding, statutory bonuses (13th/14th salaries), payslip issuance, and monthly reporting. NNRoad also helps you understand whether payroll outsourcing alone is enough or if an Employer of Record (EOR) solution is the right choice without needing to establish a Greek entity.

Monthly Greece payroll processing in euros
EFKA social security contributions (employee and employer shares)
Income tax withholding and remittance
Statutory 13th/14th bonus salary handling
Compliant payslips, detailed reports, and filings
Guidance on EOR vs payroll-only models

This payroll page is ideal for companies that already have an employer setup or are preparing for payroll readiness. If your company does not have a Greek entity or registered employer status, our Greece Employer of Record service allows you to hire employees quickly and compliantly, with full support for payroll, contracts, statutory benefits, social contributions, and labor compliance. For international payroll needs, explore our Global Payroll services. To hire in Greece without setting up a local company first, start with our Greece EOR solution. Contact NNRoad to discuss payroll or EOR hiring in Greece.

Greece Payroll Service Provider — When To Use Payroll Outsourcing vs EOR

What a Greece payroll service provider does

A Greece payroll service provider calculates gross-to-net pay, applies statutory withholdings for income tax, deducts and reports EFKA social security contributions, issues compliant payslips, and helps with monthly contribution and tax remittances. Payroll includes monthly salaries and statutory bonuses (commonly 13th and 14th salaries) as required by Greek practice and labor law.

Income tax in Greece is progressive with rates ranging from 9% up to 44% depending on annual taxable income, and employers are responsible for withholding and remitting 1/14 of the annual tax each month for salaries and statutory bonuses.

EFKA social security contributions are mandatory and cover pensions, healthcare, unemployment insurance, and other statutory benefits. Total contributions are generally around 35%+ of gross salary, split between employer and employee, with the employer portion typically higher.

Payroll outsourcing vs Employer of Record

Payroll outsourcing is suitable when your company already has a legal employer presence in Greece and registers with EFKA and the tax authorities. It helps you run compliant payroll under your own employer structure.

If your company does not have a Greek entity — and you want to hire without setting one up — an Employer of Record (EOR) is often the easier route. Our Greece EOR service provides the local employment infrastructure, compliance, payroll withholding, social security and tax remittance, contract administration, and HR support so your team can start work quickly and compliantly.

When Greece payroll outsourcing is the right fit

Your company has an established Greek employer entity or registered employer status.
You need support for monthly payroll processing, reporting, and withholding compliance.
You want a payroll partner to handle gross-to-net, EFKA, tax remittance, and payslip delivery under your employer structure.

When EOR is the better fit

Your company is entering Greece with no local entity.
You want a quicker hiring process and do not want to handle entity setup, tax registration, and employer filings yourself.
You need a provider to handle employer obligations, payroll, statutory benefits, contributions, and labor compliance end-to-end.

For many international companies hiring in Greece for the first time, starting with EOR is a practical choice. Once you have an entity and employer registrations, payroll outsourcing under your own structure can also be supported.

Greece Payroll Execution — Gross-to-Net, EFKA Contributions & Income Tax

Payroll setup before first pay run

Running payroll in Greece requires preparatory steps — registering the employer with Greek tax authorities (AADE) and the unified social security fund EFKA, collecting employee tax IDs and social insurance numbers, confirming salary structure and payment frequency, understanding statutory bonuses, and setting up reporting and remittance processes.

If your company does not yet have such registrations, consider our Greece EOR service to handle employer setup, registrations, and ongoing compliance before payroll begins.

Gross-to-net calculation basics

Greek gross-to-net payroll includes:

Gross salary, including statutory bonuses (13th and 14th) where applicable
Employee social security contributions to EFKA
Progressive income tax withholding
Solidarity contributions where applicable
Other statutory deductions and employer contributions

EFKA social security contribution rates depend on the specific portions of pension, healthcare, unemployment, supplementary insurance, and other statutory elements. Employer contributions typically amount to a higher share of the total than the employee share.

Income tax withholding

Income tax in Greece is calculated annually on a progressive scale and withheld monthly by employers as 1/14 of the annual tax liability for each payroll period. The income tax base is the employee’s annual net salary after subtracting social security contributions.

Payslip requirements

Employers must provide detailed payslips showing gross pay, deductions for social security and tax, net pay, and statutory bonuses where applicable. Payslips help satisfy compliance and transparency for both employee and employer records.

Greece Social Security Contributions (EFKA) and Reporting

The unified Greek social security system (EFKA)

Greece operates a unified social insurance system called EFKA (Electronic Unified Social Security Agency), which covers pension insurance, healthcare, unemployment insurance, and other statutory benefits. Employers and employees must make mandatory contributions calculated on gross salaries and certain bonuses.

Employee social contributions

Employee contributions to EFKA are withheld from gross pay and typically include components covering main pension, supplementary pension schemes, healthcare, and unemployment elements. The employee’s total social contribution is usually around 13%–14% of gross salary.

Employer contribution obligations

Employers must pay their share of EFKA contributions on top of the employee’s gross salary, usually totaling around 21%–22% or more depending on the detailed contribution breakdown.

Monthly reporting and remittance

Monthly reporting to EFKA is typically done electronically via the Detailed Periodic Statement (APD) or similar reporting portals. Payments for social contributions and income tax withholding are due by the last day of the month following the payroll period.

Consequences of non‑compliance

Failing to withhold or remit contributions on time can lead to penalties, interest charges, and audits by Greek authorities. NNRoad’s payroll services help ensure deadlines are met and reports are filed accurately each payroll period.

If your company is unsure about EFKA registration or compliance, consider our Greece EOR service to manage employer filings, contributions, and ongoing reporting.

Statutory Bonuses and Payment Practices in Greece

14‑Salary System

Greece has a unique payroll practice where employees commonly receive 14 salaries per year: 12 monthly base salaries plus statutory bonuses such as Christmas, Easter, and vacation bonuses. Employers should plan gross-to-net calculations and contribution reporting accordingly.

Christmas and Easter bonuses

Bonus salaries for Christmas and Easter must be included in the payroll calculation and subject to social security and income tax withholding. These bonuses are generally paid at specified times and reported as part of the payroll cycle.

Vacation bonus (Summer bonus)

Vacation bonuses are also treated similarly. Payroll systems must account for these statutory earnings and ensure accurate gross-to-net computation and social security contributions.

Legal deadline implications

These statutory bonuses cannot be treated as discretionary payments for compliance purposes — they are an expected part of Greek payroll and must be correctly processed and reported. Employers should consult with payroll experts (or use an EOR if they lack local expertise) to ensure compliance with statutory bonus payments.

If you are unsure about handling statutory bonuses under Greek law, our Greece EOR service includes statutory bonus processing as part of the employment payroll workflow.

Paid Leave, Sick Leave, and Final Pay in Greece

Annual leave entitlement

Employees working under Greek employment law generally accrue statutory paid annual leave. The specific entitlement depends on the length of service and applicable collective agreements. Payroll should track leave accrual, usage, and final settlement upon exit.

Sick leave treatment

Statutory sick leave entitles certain periods of continued pay or sickness benefits under Greek social security rules. Payroll should coordinate absence records, payslip adjustments, and social security reporting for sick leave payments.

Final pay on termination

Final payroll should include unpaid wages, accrued leave payouts, and any statutory severance or notice-related payments. Employers should review the contract, Greek labor law, and payroll records before final salary processing.

If your company needs help managing final pay and exit payroll, consider our Greece EOR service which includes payroll and compliance support at termination.

Local Greece Payroll Scenarios and Compliance Risks

Minimum wage and labor standards

Greece maintains a statutory minimum wage that employers must respect in all payroll calculations. Failure to adhere to minimum wage rules, contribution ceilings, and statutory bonus practices can lead to compliance violations.

Collective labor agreements

Collective agreements may impose additional pay elements, allowances, or industry standards that differ from base statutory requirements. Payroll should factor in applicable collective labor agreements before each pay run.

Foreign nationals working in Greece

Foreign employees require work authorization and proper registration for tax and social security purposes. Payroll should not begin until work authorization, tax ID, and social security registrations are complete. If your company does not have a local entity, an EOR arrangement can help manage work authorization alignment with payroll start dates.

Remote workers based in Greece

If your company has employees physically working from Greece, local employer obligations arise even if your company has no legal presence locally. Unregistered payroll, incorrect withholdings, and misclassification can create risks for permanent establishment, labor disputes, and tax audits. Partnering with an EOR can mitigate these risks and ensure compliant payroll handling.

How to Choose Between Payroll Outsourcing and Employer of Record in Greece

Assess your entity and employer obligations

Determine whether your company has a Greek employer entity and the capacity to register with EFKA and Greek tax authorities. If yes, payroll outsourcing under your own structure might work. If not, an EOR solution provides the local employer infrastructure you need.

Understand Greek payroll complexity

Greece payroll includes income tax withholding, social security contributions, statutory bonus payments, payslip requirements, contribution reporting, and monthly remittance obligations. A provider with deep local experience will help you avoid costly missteps.

Look for EOR capability

A partner that supports both payroll outsourcing and EOR gives you flexibility as your business grows in Greece. NNRoad can help start with EOR and transition to in-house payroll outsourcing when your local entity is ready.

Ask about reporting and compliance support

Ensure the service provider supports monthly reporting, contribution summary reports, comprehensive payslips, compliance alerts, and statutory bonus handling. These are key to accurate Greece payroll management.