Definitive Guide to Hiring in Greece

Hiring in Greece

Hiring employees compliantly in Greece means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Greece so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Greece; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Greece

Employee Probation Period

• The maximum probationary period is 12 months. During that time, the employer may terminate the employment agreement without severance.

Annual Leave in Greece

• After one year of employment, the employee is entitled on January 1st to 24 days of annual leave for a 6-day work week or 20 days for a 5-day work week. In years two and three the employee gets an additional day of vacation for each year.

Holidays in Greece

Maternity Leave Greece

• Female employees are entitled to 119 days (56 days before delivery (pregnancy benefit) and 63 days following delivery (postpartum benefit)

Paternity Leave Greece

• Fathers are entitled to 14 business days of paternity leave.

Sick Leave in Greece

• For the first three days of sick leave, employees are generally entitled to 50% of wages owed.
• Employees are eligible for sick leave pay from social insurance beginning on the 4th day of the illness.

Work Hours in Greece

• The Greek workweek is 40 hours with 5, 8-hour days.

Overtime in Greece

• The employment of more than 45 or 48 hours per week respectively is considered overtime and the employee is paid for these hours as follows: from 1 to 120 hours per year the wage is increased by 40%, for more than 120 hours per year the wage is increased by 60%.

Termination of Employment in Greece

• As of May 2019, an employer must provide a valid reason when terminating an employee.  Without a valid reason, the termination is considered invalid.  In addition, the employee can contest and even reverse the termination and the burden of proof lies upon the employer.  
• If the employment relationship is based on a fixed term contract, it can be terminated immediately without notice by either the employee or employer.  
• However, a reason (i.e. breach of contract, failure to comply with the terms of the contract, etc.) is given.  
• If no reason is given, the employee is able to make claim in court and is able to receive compensation for the wages that would have been received until the contract expiry date.
• If the employment contract is for an indefinite period, the length of the notice period depends on the length that the employee has been employed

Notice Period in Greece

• An open-ended employment agreement of a private employee that has a duration of more than 12 months cannot be terminated without prior written notice from the employer, which will take effect from the day after the employee is notified, under the following conditions:
  • For employees who have served from 12 completed months to two years, one month's notice is required before dismissal;
  • For employees who have served from two to five years, two months' notice is required before dismissal;
  • For employees who have served from five to 10 years, three months' notice is required before dismissal; and
  • For employees who have served 10 years or more, four months' notice is required before dismissal.

Severance in Greece

• As of July 2019, employers must pay severance indemnities and corresponding taxes to the employees’ bank accounts via wire transfer instead of using a bank cheque.
• In the case of an open-ended employment agreement terminated by the employer, the severance pay is calculated as detailed below.
• Length of service with the same employer: -
  • from 1 day to 1 year no severance pay is due; and
  • from 1 year to 4 years’ severance pay of 1 month is due if the employer complies with the statutory period of notice. If the employer does not comply with the period of notice, a severance pay of 2 months is due.
  • from 4 to 6 years, a severance pay of 1.5 months is due if the employer has complied with the legislation on the notice period and 3 months if not;
  • from 6 to 8 years, a severance pay of 2 months is due if the employer has complied with the legislation on the notice period and 4 months if not;
  • from 8 to 10 years, a severance pay of 2.5 months is due if the employer has complied with the legislation on the notice period and 5 months if not;
  • from 10 to 11 years, a severance pay of 3 months is due if the employer has complied with the legislation on the notice period and 6 months if not;
  • from 11 to 12 years, a severance pay of 3.5 months is due if the employer has complied with the legislation on the notice period and 7 months if not;
  • from 12 to 13 years, a severance pay of 4 months is due if the employer has complied with the legislation on the notice period and 8 months if not;
  • from 13 to 14 years, a severance pay of 4.5 months is due if the employer has complied with the legislation on the notice period and 9 months if not;
  • from 14 to 15 years, a severance pay of 5 months is due if the employer has complied with the legislation on the notice period and 10 months if not;
  • from 15 to 16 years, a severance pay of 5.5 months is due if the employer has complied with the legislation on the notice period and 11 months if not;
  • from 16 and above, a severance pay of 6 months is due if the employer has complied with the legislation on the notice period and 12 months if not.

Greece Salary and Wages

Immigration Greece

• EU nationals are not required to obtain residence permits to live and work in Greece.
• However, EU nationals who intend to reside and work in Greece for more than three months must obtain a European Citizen Residence Card. This card, which may not be denied to EU nationals, is granted for an indefinite time period by the appropriate Police Department (Alien Bureau).
• Non-EU nationals must obtain a residence permit.
• Greek law provides for specific types of residence permits for non-EU nationals, which provide access to employment in Greece.
• Consequently, a non-EU national does not need to obtain a separate work permit apart from the residence permit.
• The competent authority for the issuance of a residence permit depends on the type of residence permit. For example, the Greek Ministry of Internal Affairs grants residence permits to members of boards of directors, administrators, legal representatives and higher executives of subsidiaries or branches of foreign companies exercising their commercial activities legally in Greece.
• Residence permits are usually valid for one year and are renewable.
• In addition, individuals who have adequate means to support their activities and who are engaged in activities that make a positive contribution to the national economy may be self-employed in Greece if they obtain an entry visa and file an application for a residence permit.
• Apart from the above, residence permits are available to non-EU citizens who will invest in Greece.
  • In this context, a residence permit is granted to a third-country national (non-EU) who purchases real property or enters into a time-sharing agreement or lease agreement under specific requirements set by the Greek Immigration Code.
  • The residence permit is granted for five years. 
  • The residence permit may be renewed for an equal term if the property remains in the ultimate ownership and possession of the interested party and if the party complies with other provisions of the applicable laws. 
  • The permit is granted if the interested party has been granted a visa (under certain conditions) and if the interested party has ultimate ownership and possession of the property in Greece, individually or through a legal entity of which the party is the sole owner of the respective shares or capital parts. 
  • The minimum value of the property should be EUR250,000. 

• Under the Greek Immigration Code (Law 4251/2014), a Blue Card may be issued to highly specialized personnel (European Directive 2009/50/EC). The Greek Immigration Code has incorporated into the Greek legal framework the provisions of the EU Intercorporate Transfer Directive (Directive 2014/66/EU) on the conditions of entry and residence of third-country nationals in the context of an intra-corporate transfer.

Value Added Tax (VAT) in Greece

• The standard VAT rate is 24% (applicable, inter alia, to all standard and processed foods, transportation services, food services, repair services, medical and dental services, and entertainment tickets [excluding theatre tickets]).
• A reduced VAT rate of 13% applies, inter alia, to fresh food, to care of children, the elderly, and the disabled, and to accommodation in hotels or similar establishments (including holiday accommodation and letting of places in camping or caravan sites). 
• A super reduced rate of 6% for medicines of CN3003 and 3004, and vaccines of CN3002 intended for human consumption, is applicable. 
• The aforementioned rate is also applicable for children’s books, coloring and drawing books, newspapers, magazines, and theatre tickets.
• Furthermore, pursuant to a relevant decision issued by the Minister of Finance, the above rates will be reduced by 30% and are set at 17%, 9% and 4%, respectively, on the islands of Leros, Lesbos, Kos, Samos and Chios.

Mandatory Benefits in Greece

• These refer to mandatory benefits as prescribed by law.
• These include annual leave, maternity leave, paternity and parental leave, sick leave, severance pay, notice period, public holidays, 13th and 14th month.
• Moreover, statutory benefits also include social security benefits.
• Social security benefits cover pensions, medical expenses, long term disability payments etc.

Payroll Accrual in Greece

Country Accruals Additional Information

Description

Note: As of 1 June 2020, the employer's contribution rate will be decreased to 24.33 percent (only in case of full-time employment). As of 1 June 2020, the employee's contribution rate will be decreased to 15.33 percent (only in case of full-time employment).The maximum monthly gross salary on which social contributions are due is EUR6,500. It should be noted that not all the categories of the working force are covered by the same social security rates as the salaried employees. Further investigation is required in case the individual performs other kinds of entrepreneurial/business activities.

In certain circumstances, EU and non-EU employees may be exempt from registering with the Greek social system.

Payroll Accruals Additional Information

Accrued Benefits in Greece

Why use Global Expansion to hire in Greece

Establishing a branch office or subsidiary in Greece can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Greece labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Greece law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Greece. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Greece Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.