Expanding your workforce in Greece is easier when you understand the mandatory benefits and perks to attract local top talent. 

If affordable labor costs, excellent infrastructure, and a strong economy sound like the ideal conditions to expand your business, then Greece should be your next investment destination. Located at the intersections of Asia, Europe, and Africa, it is not only a popular spot for tourists but is also strategically positioned for access to international markets and ease of trade. 

Despite Greece’s financial setback almost a decade ago, the country has shown considerable economic growth and resilience. Based on the OECD’s economic survey of Greece, the GDP is expected to grow by 2.2% in 2025 and around 2.5% in 2026. Greece’s GDP stood at $243.5 billion in 2023, and today, the country’s increased tourism and structural reforms in the judicial, fiscal, and labor markets have created a competitive economy. 

When it comes to hiring in Greece, foreign businesses can benefit from a very highly educated workforce and affordable labor rates. Greece is ranked as one of the lower-cost countries across the European Union with minimum wages of only €5.19 per hour. 

To pursue business expansion in Greece, companies must protect themselves and their workers by familiarizing themselves with Greece’s labor law. The labor laws govern all aspects of the employment relationship, including employment contracts, paid leave, working hours, and employee benefits in Greece. Understanding the mandatory and supplementary benefits you can offer skilled job candidates places your company at an advantage in attracting the country’s top talent. 

In this guide, you will learn about Greece’s labor laws, employee benefits to hire a skilled workforce, and how services such as an Employer of Record (EOR) in Greece can help you with talent acquisition and the avoidance of non-compliance penalties.  

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Greece Employment Laws

The labor laws in Greece provide employers with guidelines concerning employee rights and safety along with steps to facilitate the employment relationship. The labor law includes the Greek Civil Code and constitution. 

Greece’s labor regulations cover notice requirements, contract termination procedures, and benefits to ensure fair labor practices. To get an idea of these requirements, an overview of Greece’s labor law is provided below: 

Employment contracts

In Greece, both indefinite contracts or fixed-term contracts are offered to new employees. The employment contract is vital in outlining the employer and employee details, job duties, salaries, benefits, and bonuses. 

Termination of Employment 

To proceed with the termination of an employment contract, employers must provide employees with written notice. Both the issuing of the written notice and compensation depend on the individual’s length of service. It is important to note that compensation is only paid to employees who have worked for the same employer for 12 months. 

Minimum Wage Law 

Full-time employees in Greece can be paid a minimum wage of €830 per month. 

Learn more about minimum wage in Greece

Social Security Regulations 

The social security in Greece is known as EFKA, or the National Social Security Fund, which is an insurance-based plan offered by the government. It is available for Greek nationals and foreign residents. Insured individuals receive medical care, hospitalization, rehabilitation, dental care, and contributions toward medication. All employed persons in Greece must make monthly contributions to EFKA. 

Leave Schemes 

All Greek employees are entitled to annual leave, maternity leave, parental leave, sick leave, and paternity leave. In addition to standard leave schemes, the country provides time off for elections and special leave for bereavement and carer leave. 

How to maintain compliance with Greek labor laws

When you hire a workforce in Greece, you’ll have to follow the labor laws, from drafting the employment contract to adding statutory benefits for employees. Failing to comply with these laws places your business at risk of penalties from fines of up to €50,000 to sanctions. 

The simplest way to stay compliant is to rely on legal professionals, or you can rely on a Greek EOR firm. EOR services in Greece focus on maintaining compliance with the country’s labor laws, but they also assist with payroll and the administration of employee benefits. When you partner with an EOR in Greece, you don’t have to set up a legal entity to hire a workforce.  

Mandatory Employee Benefits in Greece

From negotiating attractive perks to presenting mandatory employee benefits in Greece, discover which labor laws you must follow to hire a competitive and skilled workforce: 

Social Security Contributions

Greek employers and employees must make social security contributions to e-EFKA, the national insurance fund. A percentage of the employee’s gross salary is taken as payment towards the fund. 

  • Employee Contributions
  • Pension fund: 6.67% (private sector) and 15.33% (public sector).  
  • Unemployment: 1.2% 
  • Healthcare: 2.15% 
  • Health benefit: 0.4%
  • Employee Contributions
  • Pension fund: 13.33% (private sector) and 24.33% (public sector). 
  • Unemployment: 1.2%
  • Healthcare: 4.3% 
  • Health benefit: 0.25% 

Annual Paid Leave

The amount of paid annual leave depends on the employee’s number of years of service. For example, employees who complete one year of service are entitled to 20 days of annual paid leave if they work a five-day week. Employees who have worked up to 10 years with the same employer receive 22 days of annual paid leave based on a five-day workweek. 

Working Hours

Greek employees work for 40 hours a week over five or six days.

Overtime Pay

Overtime is compensated at a rate of 120% of the employee’s hourly wage. The legal limit for overtime work is 150 hours per year. 

Up to 12 paid public holidays are permitted annually in Greece, including New Year’s Day, Greek Independence Day, Clean Monday, Good Friday, and Christmas Day. 

In Greece, the maximum number of sick days employees receive is 25 days, but the specific amount of time off depends on the length of service. Employers must pay half of the employee’s salary for the first three days of sick leave. 

Special Leave

Greek workers receive statutory paid leave for bereavement of two days and unpaid carer leave of five days. 

Maternity Leave

Based on the Greek Labor Act, pregnant employees must receive 17 weeks of maternity leave. Employees have the option of taking eight months prior to birth and nine months post-birth. 

Paternity Leave

Employees receive up to 14 days of paternity leave.

Severance Pay

The calculation of severance pay differs between public and private sector employees in Greece. In the private sector, workers with an indefinite employment contract who have worked for one year must receive written notice prior to termination. 

Severance is based on an employee’s years of service. For example, an employee with an indefinite contract who has worked for the same employer for one to four years must be paid two months’ salary upon contract termination. 

Supplementary Employee Benefits in Barbados

Supplementary employee benefits or perks in Greece are not required by labor law; however, they are important in attracting and negotiating employment contracts with preferred job candidates. Furthermore, offering your workforce additional perks creates a motivated and productive team, reducing absenteeism and improving employee retention rates. Some of the most common supplementary benefits for Greek employees are discussed below: 

  • Supplementary Insurance: In Greece, supplementary insurance involves insurance coverage that is not provided by the state’s social security. This may include additional healthcare or extra contributions toward the pension fund that are covered by the employee and employer.
  • Holiday Bonuses: Employers can offer bonuses for holidays such as Easter and Christmas.
  • Supplementary Healthcare: Some employers provide their workers with private health insurance to address medical costs or treatments that are not covered by the state.

Optimize Employee Benefits with Remote People

Greece is an attractive location for doing business because it offers an investment-friendly environment along with booming economic sectors such as tourism, agriculture, and maritime shipping. 

To attract foreign investment, Greece has reformed its financial and judicial systems for efficiency and transparency. The Greek Constitution provides clear guidelines as to employer and employee rights and legal requirements when entering the employment relationship. 

For successful business expansion in southeastern Europe, you can partner with an EOR in Greece. An EOR firm can guide you through the local labor laws and keep you compliant so you can avoid harsh penalties while establishing a high-performance team. 

When you’re ready to expand your business in Greece, Remote People can make the process smoother, faster, and more cost-effective. Remote People’s EOR services help you with solutions for payroll, compliance, and employee benefits in Greece. 

Contact Remote People today and discover how you can achieve successful international expansion.