Greece Employer of Record & Payroll Guide: Hiring, Compliance & EOR

Overview

Greece’s employment system is tightly controlled through mandatory filings and strict sequencing rules.

You will be dealing with three key bodies:

• Ministry of Labour and Social Affairs for overall regulation  

• Labour Inspectorate (SEPE) for inspections and penalties  

• e-EFKA for social security registration and contributions  

Everything runs through the ERGANI platform, which requires real-time reporting of employment actions. This is where most compliance issues happen.

In practice, employers must submit hires in ERGANI before the first working day, report any schedule changes in advance, file terminations on the same day, and log leave and overtime through the system.  

ERGANI and e-EFKA data must align exactly across employee details, pay, and timelines, and since corrections are limited once submitted, errors are difficult to fix. Most inspections rely on this system data, so inconsistencies are quickly flagged.

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Employment Conditions

Employment in Greece is built around written contracts that must be in place before ERGANI submission. Contracts need to be in Greek and must match what is filed with authorities, including role, salary, working hours, and work location.

Two contract types are used:

• Open-ended (aoristou chronou) as the default  

• Fixed-term (orismenou chronou) only if there is a valid reason such as project work or temporary replacement  

Fixed-term contracts aren’t something you can keep extending freely. After three renewals or 36 months, they’re treated as permanent no matter what the contract says.

Probation can go up to 12 months, but the first six months are where you have more flexibility. Terminations during this period are easier, as long as they’re properly reported.

The standard workweek is 40 hours over five days. Overtime isn’t just about paying extra, it has to be declared and recorded in ERGANI. Pay usually increases by 20% to 40% depending on how it’s classified, and if it’s not declared, it’s one of the quickest ways to run into penalties during inspections.

Minimum wage is fixed and must align across contract, payroll, and filings:

• €880 per month for salaried employees  

• €39.30 per day for daily workers

Any mismatch between contract terms, ERGANI filings, and payroll data is treated as non-compliance and is easily flagged during inspections.

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Taxes & Mandatory Contributions

Income tax in Greece is withheld by the employer based on progressive annual brackets, ranging from 9% to 44% after social security deductions.  

For incomes above €220,000, an additional solidarity contribution applies, ranging from 2.2% to 10%.

Social security is handled through e-EFKA and is mandatory for both employer and employee.

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Payroll runs monthly, with salaries usually paid on the last working day. Employees are legally entitled to 14 salary payments per year, which must be factored into payroll:

• One full extra salary for Christmas  

• Half a salary for Easter  

• Half a salary for summer leave  

Payslips must itemize gross pay, EFKA contributions, income tax, and net pay.

All payroll and contribution data must be submitted monthly to e-EFKA through the APD filing. Late or inaccurate submissions trigger automatic penalties, and reported figures must match payroll records exactly.

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Benefits

Healthcare coverage in Greece is provided through the national healthcare system (EOPYY) and funded through mandatory social security contributions paid to e-EFKA.

For employers, this means healthcare costs are built directly into payroll through monthly employer and employee contributions, rather than handled through optional private plans by default.  

Coverage generally includes public healthcare, hospital care, prescriptions, and maternity services.

Pension Contributions

All employees in Greece must be registered with e-EFKA for pension coverage. Depending on the industry or role, additional supplementary pension contributions through ETEAEP or sector-specific funds may also apply.

Employer and employee pension contributions are withheld and reported through monthly payroll filings.

Monthly payroll filings must correctly reflect:

• employee classification  

• contribution rates  

• applicable salary ceilings  

• supplementary insurance obligations where required
  

13th and 14th Salaries

Greece requires mandatory additional salary payments commonly referred to as the 13th and 14th salaries.

These are statutory entitlements, not discretionary bonuses, and must be factored into annual compensation costs from the beginning.

In practice:

• the 13th salary is typically paid as a Christmas bonus  

• the 14th salary is split between Easter and summer holiday payments  

• entitlement is prorated if the employee has not worked the full year  

• these payments are also subject to payroll tax and social security contributions

This structure significantly increases total annual employment costs compared to countries that only operate on 12 monthly salary payments.

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Leave Entitlements

Annual Leave

Paid annual leave increases based on years of service. Employees working a standard 5 day week typically receive:

• 20 working days during the first year  

• 22 working days after completing one year  

• up to 26 working days after 25 years of service  

For employees on a 6 day schedule, the entitlement is slightly higher.

During the first year of employment, annual leave accrues gradually rather than being granted in full upfront. Employers are also expected to ensure unused leave is taken within the applicable leave period and to pay the corresponding vacation allowance tied to the employee’s leave entitlement.

Public Holidays

Greece has 12 mandatory public holidays where most employees are entitled to time off.

Employees who work on a mandatory public holiday are generally entitled to an additional 75% pay premium, and in some cases, a substitute rest day depending on the sector and work arrangement.

Holiday work rules are taken seriously, especially in industries operating continuously such as hospitality, retail, logistics, and healthcare.

Regional or sector-specific holidays may also apply through collective agreements or local custom.

Sick Leave

Employers must continue paying employees during the initial days of short-term sick leave.

The first 3 sick days are generally paid at 50% of the employee’s daily wage. After that, e-EFKA sickness benefits may apply, subject to eligibility and medical certification.

Employees are typically required to provide medical documentation for longer absences. Sick leave payroll reporting must also match social security filings to avoid compliance or reimbursement issues.

Long-term illness may limit an employer’s ability to terminate employment.

Parental Leave

Maternity leave totals 119 days and is split into:

• 56 days before childbirth  

• 63 days after childbirth  

During this period, benefits are mainly paid through the social security system, although employers may still have payroll or supplemental payment obligations depending on the employment terms or collective agreement.

Fathers are entitled to 14 working days of paid paternity leave, usually taken around the birth of the child.

Greece also provides additional parental protections, including restrictions on dismissal during pregnancy and after childbirth, breastfeeding and childcare leave entitlements, and reduced working hour arrangements in certain cases.

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Employee Rights & Protections

Greek employment law includes protections against discrimination in hiring, pay, promotions, working conditions, and termination. Employers should also be aware that workplace practices which indirectly disadvantage protected groups can still create legal risk.

Employee data is regulated under GDPR, so payroll records, identification documents, and other employee information must be handled carefully and only processed for legitimate employment purposes.  

Workplace monitoring, including CCTV or email monitoring, also requires proper justification and employee notice.

Employees in Greece have the right to join unions and may be covered by Collective Bargaining Agreements (CBAs). Depending on the industry, these agreements can set additional rules on salaries, overtime, leave, allowances, and termination beyond the national minimum requirements.

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End of Employment

For indefinite-term employees, notice periods increase based on length of service:

• 1 to 2 years: 1 month  

• 2 to 5 years: 2 months  

• 5 to 10 years: 3 months  

• 10+ years: 4 months  

If the employer terminates without notice, full statutory severance must generally be paid. When proper notice is provided, the severance obligation is reduced by 50%.  

Depending on tenure, severance can range from roughly 2 months’ salary to as much as 12 months’ salary for long-serving employees.

Termination documents must also be properly issued and filed through the ERGANI system on the same day as the dismissal. Delays, incorrect filings, or missing documentation can result in the termination being challenged as invalid.

Additional protections may apply in cases involving:

• pregnancy or maternity leave  

• long-term illness  

• union activity  

• employees covered by specific collective agreements

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Your Option to Use EOR

For companies without a local entity, an Employer of Record (EOR) can legally hire employees in Greece on the company’s behalf. The EOR handles local employment compliance while the client company manages the employee’s day-to-day work.

In practice, an EOR typically manages:

• ERGANI employment filings  

• e-EFKA registrations and social security reporting  

• payroll processing, including 13th and 14th salary payments  

• tax withholdings and monthly payroll filings  

• locally compliant employment contracts  

• leave, benefits, and termination administration  

This can significantly reduce administrative and compliance workload for foreign employers, especially since Greek payroll and labor reporting requirements are strict and highly procedural.

An EOR like Knit also allows companies to hire quickly without setting up a Greek entity first. While local entity setup can take several weeks and require ongoing accounting and administrative support, an EOR can often onboard employees in under two weeks.

For a deeper dive into EOR expansion in Greece, speak with Knit.

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Frequently Asked Questions

How does the ERGANI system impact daily management?  

ERGANI is Greece’s real time labor reporting system where work schedules, overtime, and contract changes must be submitted before they take effect. Late or missing submissions can trigger immediate fines during inspections, leaving little room for retroactive payroll or attendance corrections.

Is the "14-month salary" a bonus or a requirement?  

The 13th and 14th salaries are mandatory statutory payments in Greece’s private sector, not discretionary bonuses. Employees receive an extra full month’s pay for Christmas plus two half-month payments for Easter and summer vacation, meaning annual salary costs are calculated over 14 payments instead of 12.

What is the "conservative" approach to termination?  

Greek courts are highly protective of employees, and "at-will" employment does not exist. Terminating "for cause" requires a high burden of proof that is rarely met in court. To minimize litigation and reinstatement risk, most employers terminate "without cause" and pay the full statutory severance.

Can I use a standard global contract for Greek staff?  

Not always. Industry specific Collective Bargaining Agreements (CBAs) can impose higher minimums for pay, leave, and working conditions than the general labor code, especially in sectors like banking and tourism. Employment contracts should also be drafted in Greek for practical compliance purposes.

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What is the mandatory onboarding sequence?  

Registration must be completed before work begins. Employers must activate their e-EFKA registration and submit the ERGANI hiring notice (Form E3) by the employee’s first working day. Late filings can trigger automatic penalties and compliance issues around the employment start date.

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