Hiring in Greece

Key Facts

Political System & Government

Greece operates as a parliamentary representative democratic republic. The political system is characterized by a separation of powers among the executive, legislative, and judicial branches. The President of the Republic serves as the head of state with largely ceremonial duties, while the Prime Minister is the head of government and holds executive authority.

The unicameral Hellenic Parliament, consisting of 300 members elected every four years, holds legislative power. The government is formed by the party or coalition with a parliamentary majority. The judiciary is independent, with the Supreme Court acting as the highest judicial authority. Greece is a member of the European Union and aligns its legal framework accordingly.

Economic Overview

Greece's economy is classified as advanced and high-income, with significant contributions from the services sector, particularly tourism, shipping, and finance. The industrial sector includes manufacturing of food, textiles, chemicals, and metal products. Agriculture remains a smaller but notable component, producing olives, fruits, and tobacco.

Following a severe debt crisis in the early 2010s, Greece has experienced gradual economic recovery, supported by structural reforms and EU financial assistance. GDP growth rates have stabilized around 2-3% annually since 2021. The country faces challenges such as high public debt and unemployment, though recent improvements have been recorded.

Business Culture & Etiquette

Greek business culture emphasizes personal relationships and trust. Face-to-face meetings are preferred over electronic communication for establishing rapport. Business discussions often begin with informal conversation to build trust before addressing substantive matters.

Communication style tends to be direct but polite, with an appreciation for diplomacy and respect. Hierarchical structures are common, and decision-making authority typically rests with senior management. Punctuality is valued, though meetings may start with some flexibility.

Foreign business professionals should be aware of the importance of hospitality and social interaction in Greek business settings. Gift-giving is not customary but small tokens of appreciation may be welcomed in established relationships.

Currency & Banking

Greece uses the Euro (EUR) as its official currency, having adopted it in 2001. The banking sector is well-developed and integrated with the European Central Bank system. Major banks offer a full range of financial services, including corporate accounts, loans, and electronic banking.

Foreign exchange controls were largely removed following Greece’s entry into the Eurozone. Currency exchange is freely available, and there are no significant restrictions on capital movement for international businesses. However, compliance with EU anti-money laundering regulations is strictly enforced.

Key Facts for International Employers

• Employment contracts in Greece are predominantly written and must comply with national labor laws.
• The standard workweek is 40 hours, with overtime regulated and compensated.
• Social security contributions are mandatory for both employers and employees.
• Collective bargaining agreements play a significant role in setting employment terms in various sectors.
• Termination of employment requires just cause and adherence to notice periods.
• Work permits are required for non-EU nationals and involve a formal application process.
• Greece has comprehensive anti-discrimination laws protecting employees.
• Payroll taxes and contributions can represent a significant cost for employers and should be factored into budgeting.

Employment Contract Requirements

Employment contracts in Greece must be in writing to be enforceable, particularly for fixed-term and part-time employment. Oral contracts are generally valid but pose evidentiary challenges in disputes. The contract must be provided in Greek or accompanied by a Greek translation to ensure the employee fully understands the terms.

Mandatory clauses include:

• Identification of parties (employer and employee)
• Job description and duties
• Place of work
• Contract duration (fixed-term or indefinite)
• Working hours and rest periods
• Salary and payment frequency
• Leave entitlements
• Notice periods for termination
• Collective agreements applicable, if any

Employers must provide a written statement of employment terms within 20 days of the employee starting work, as required by Law 3896/2010.

Types of Employment Contracts

Greece recognizes several contract types:

• Indefinite-term contracts: The default form of employment with no fixed end date. Termination requires just cause and adherence to statutory notice periods.
• Fixed-term contracts: Allowed for specific, temporary needs such as project work or seasonal activities. Maximum duration is generally 36 months, including renewals. Successive renewals beyond this period may convert the contract into an indefinite one.
• Part-time contracts: Must specify reduced working hours compared to full-time employment. Part-time employees enjoy the same rights on a pro-rata basis.

Employers must comply with the Greek Labor Code and Law 2112/1920 regarding contract modifications and renewals.

Probation Period

Probation periods are permitted but must be explicitly stated in the contract. The maximum probation duration is six months for indefinite contracts and can be shorter for fixed-term contracts.

Termination during probation does not require justification but must comply with notice obligations.

Work Permits & Visa Requirements

Non-EU/EEA nationals require a work permit and residence visa to work legally in Greece. The employer must apply for the work permit through the Ministry of Labour and Social Affairs before the employee enters Greece.

Key points:

• Work permits are job-specific and employer-specific.
• The process includes labor market tests to prioritize Greek and EU workers.
• Validity typically matches the contract duration, up to 2 years with possible renewal.
• Family reunification visas are available for dependents.

EU/EEA nationals do not require work permits but must register with local authorities if staying longer than three months.

Background Checks & Onboarding

Background checks in Greece are limited by strict data protection laws (GDPR and Law 4624/2019). Employers may verify:

• Identity and legal work status
• Educational and professional qualifications
• Criminal record only if directly relevant and with employee consent

Mandatory registrations include:

• Social security registration with EFKA (Unified Social Security Fund)
• Tax registration

Onboarding procedures involve providing employees with the written contract, health and safety training, and registering them with social security within 30 days of hiring.

Anti-Discrimination Laws

Greek labor law prohibits discrimination on grounds of:

• Gender
• Age
• Race or ethnicity
• Religion or belief
• Disability
• Sexual orientation
• Political opinion

These protections apply throughout hiring, employment, and termination processes. The Constitution of Greece and Law 3304/2005 implement EU anti-discrimination directives.

Employers must ensure non-discriminatory job advertisements, selection criteria, and workplace policies.

EOR Considerations

Using an Employer of Record (EOR) in Greece involves:

• Ensuring the EOR complies with Greek labor laws, including contract requirements and social security obligations.
• Verifying the EOR’s registration with Greek authorities.
• Understanding that the EOR assumes employer liabilities, including tax withholding, social contributions, and compliance with termination rules.
• Clarifying responsibility for employee benefits and collective bargaining agreements.

Employers should conduct due diligence on the EOR’s local expertise and legal compliance to mitigate risks associated with employment law violations in Greece.

Minimum Wage

Greece enforces a national minimum wage applicable uniformly across all regions. As of May 1, 2023, the minimum wage was set at €780 gross per month for full-time employees aged 25 and over. For employees under 25 years old, a reduced minimum wage of €650 gross per month applies. There are no regional variations in the statutory minimum wage.

Salary Structure & Payment

The typical salary structure in Greece consists of a base monthly salary complemented by statutory bonuses and allowances. Salaries are usually expressed as gross amounts, inclusive of social security contributions but exclusive of income tax.

Payroll is generally processed on a monthly basis, with payments made by the end of each calendar month. Employers commonly pay salaries via bank transfer to employees’ accounts, ensuring traceability and compliance.

Additional components of remuneration may include overtime pay, bonuses, and allowances, which are subject to specific legal provisions.

Mandatory Bonuses & Allowances

Greek labor law mandates several statutory bonuses and allowances:

• 13th Month Salary (Christmas Bonus): Employees are entitled to a 13th month salary, paid in December, equivalent to one full monthly wage.
• 14th Month Salary (Holiday Bonus): A 14th month salary is paid in Easter or summer, depending on the collective agreement or employer practice, also equal to one monthly wage.
• Vacation Allowance: Employees receive an additional payment during their annual leave, typically equivalent to one monthly salary.

These bonuses are considered part of the employee’s total remuneration and are subject to social security contributions and income tax.

Income Tax (Employee)

Income tax in Greece is progressive, with rates applied to annual taxable income as follows:

Taxable income includes gross salary minus allowable deductions such as social security contributions and certain personal allowances.

Employer Tax Obligations

Employers in Greece are responsible for several mandatory contributions, shared between employer and employee. The contributions cover social security, health insurance, pension funds, and other statutory funds.

The total employer contribution rate is approximately 26.06% of the employee’s gross salary, while employees contribute about 16.75%.

Tax Filing & Compliance

Employers must withhold income tax and social security contributions monthly and remit these to the tax authorities by the 20th day of the following month. Annual tax returns for employees are filed by the employer or employee by June 30 of the following year.

Compliance requires accurate payroll records, timely payments, and submission of electronic declarations through the Greek tax authority’s platform.

Penalties for late or non-payment include fines ranging from €100 to €5,000, interest charges on overdue amounts, and potential criminal liability for severe violations.

Failure to comply with social security contribution obligations may result in additional sanctions and suspension of business operations.

Employers are advised to maintain rigorous payroll controls and consult with local tax experts to ensure full compliance with Greek compensation and tax regulations.

Standard Working Hours

Standard working hours in Greece are regulated by national labor laws and collective agreements. The legal framework establishes limits to daily and weekly working hours and mandates rest periods to protect workers' health and safety.

Employees typically work five days a week, with the possibility of flexible arrangements under certain collective agreements. Any work beyond the standard hours is considered overtime and subject to specific regulations.

Overtime Regulations

Overtime work in Greece is strictly regulated. Compensation rates vary depending on whether the overtime occurs on a weekday, weekend, or public holiday. Employers must comply with these rates to avoid penalties.

Overtime is generally voluntary unless otherwise specified in collective agreements. Employers must also observe maximum limits on overtime hours to prevent excessive work burdens.

Annual Leave

Annual leave entitlement in Greece increases with the length of service. The statutory minimum leave is designed to ensure adequate rest and recuperation for employees.

Annual leave is accrued progressively and must be granted within the calendar year or as otherwise agreed. Unused leave may be compensated or carried over under specific conditions.

Public Holidays

Greece observes several statutory public holidays. Employers must provide employees with these days off or compensate accordingly if work is required.

Sick Leave

Employees in Greece are entitled to sick leave with pay, subject to medical certification. The entitlement and pay rates are governed by social insurance regulations.

• Entitlement: Up to 6 months of sick leave with pay, extendable under certain conditions.
• Pay Rate: Typically, 50% of the employee's salary is paid by the employer for the first 3 days; thereafter, social insurance covers approximately 80%.
• Medical Certificate: Required from the first day of absence; issued by a recognized medical professional.

Employers must notify social insurance authorities of sick leave and comply with documentation requirements.

Maternity & Paternity Leave

Maternity and paternity leave in Greece are protected by law, providing job security and income support.

Maternity leave can be extended in cases of complications. Fathers are entitled to paternity leave to support the mother and newborn.

Other Statutory Leave

In addition to the above, Greek labor law provides for other statutory leave types:

• Bereavement Leave: Typically 3 days paid leave for the death of an immediate family member.
• Marriage Leave: Usually 3 days paid leave granted upon marriage.
• Study Leave: Granted under specific collective agreements or employer policies; duration and pay vary.
• Military Service Leave: Leave granted for compulsory military service, with job protection.

Employers must comply with these provisions to ensure lawful employment practices and employee welfare.

Grounds for Termination

Termination of employment in Greece can occur under three primary grounds: with cause, without cause, and mutual agreement. Termination with cause refers to dismissal due to serious employee misconduct or breach of contractual obligations, such as theft, fraud, or gross negligence. In such cases, the employer may terminate the contract immediately without notice or severance pay. Termination without cause occurs when the employer ends the employment relationship for reasons unrelated to employee misconduct, such as economic downturns or restructuring. This type requires adherence to notice periods and severance obligations. Mutual agreement termination involves both parties consenting to end the contract, often documented in a written agreement specifying terms and any compensation.

Notice Period Requirements

The notice period in Greece depends on the employee’s tenure and whether the termination is initiated by the employer or employee. During probation, notice requirements are minimal. The following table summarizes the statutory notice periods:

Employers must provide written notice specifying the termination date. Failure to comply may result in compensation in lieu of notice.

Severance Pay

Severance pay in Greece is mandatory when termination is initiated by the employer without cause. The calculation is based on the employee’s gross monthly salary and length of continuous service. The statutory formula is:

• 1 month’s salary for each full year of service
• For partial years, severance is calculated proportionally

The following table outlines severance entitlements:

Severance pay excludes bonuses and allowances unless otherwise stipulated by collective agreements or contracts. Severance is paid in a lump sum upon termination.

Unfair Dismissal Protections

Greek labor law provides strong protections against unfair dismissal. Terminations must be objectively justified and follow due process. Unfair dismissal includes dismissals without valid cause, failure to observe notice periods, or discriminatory terminations.

Employees may challenge dismissal by filing a complaint with the Labor Inspectorate or labor courts within 60 days of termination. Remedies include:

• Reinstatement to the former position
• Compensation up to 12 months’ salary

Employers must provide written reasons for dismissal. Appeals proceed through labor courts, which may order reinstatement or damages if dismissal is deemed unlawful.

Data Protection & Privacy

Greece enforces the General Data Protection Regulation (GDPR) through national legislation. Employers must handle employee personal data lawfully, fairly, and transparently. Key requirements include:

• Obtaining employee consent where necessary
• Limiting data collection to employment-related purposes
• Ensuring data accuracy and security
• Allowing employees access to their data and rectification rights

Data breaches must be reported to the Hellenic Data Protection Authority within 72 hours. Employee monitoring must respect privacy rights and be proportionate.

Workplace Safety & Unions

Workplace safety is regulated under Law 3850/2010 and related decrees, requiring employers to provide a safe working environment, conduct risk assessments, and implement preventive measures. Employers must appoint safety officers and provide training.

Trade unions have the right to organize, represent employees, and engage in collective bargaining. Collective agreements are common and binding on members. Strikes are permitted under strict legal conditions.

Dispute Resolution

Labor disputes in Greece are resolved through a multi-tiered approach:

• Mediation: Voluntary mediation is encouraged before formal proceedings.
• Arbitration: Parties may agree to arbitration, which is binding.
• Litigation: Labor courts have jurisdiction over employment disputes. Claims must be filed within statutory deadlines, typically 60 days for dismissal cases.

The process emphasizes conciliation and aims to resolve conflicts efficiently while protecting employee rights.