Employer of Record (EOR) in Greece

Employment Laws and Regulations in Greece

Employment Contracts

Greek employment law requires written contracts for all employees. The Labour Code and Law 4808/2021 govern the key provisions. Contracts must be in Greek and specify the employee’s role, compensation, working hours, probation period, and termination conditions.

Fixed-term contracts need objective justification: project completion, temporary replacement, or seasonal work. They cannot be renewed more than three times within 36 months. Exceed that limit and the contract automatically converts to indefinite employment. Indefinite contracts are the default and come with stronger job protection, including notice periods and severance rules on termination.

Working Hours and Overtime

The standard working week in Greece is 40 hours across 5 days, with a maximum of 8 hours per day (Greek Ministry of Labour). Law 5239/2025 (“Fair Work for All”) increased the daily overtime limit to 4 hours, with a cap of 150 hours per year at a 40% wage premium. Overtime beyond 150 hours requires approval from the labour authority and carries a 60% premium.

Employees may refuse overtime in good faith without risk of termination or adverse treatment. As of November 2025, overtime premiums, night work premiums, and Sunday/holiday pay are exempt from social security contributions.

Overtime and Premium Pay Rates

Greek overtime and premium rates are set by Law 5239/2025 and vary depending on when the extra hours are worked. The following table summarises rates for weekday overtime, night shifts, Sunday work, and public holiday work, with the most significant premium (75%) applying to Sunday and public holiday hours.

Employers who fail to follow overtime procedures face penalties. Each hour of illegal overtime (overtime not properly declared) is compensated at the hourly rate plus 120%. Annual caps on total overtime hours protect employees from excessive work demands.

Minimum Wage

Greece set the national minimum wage at EUR 880 per month effective January 1, 2026 (Eurofound). This amount increases to EUR 920 per month from April 1, 2026 (Eurofast). The daily rate for blue-collar workers is EUR 39.30. Collective bargaining agreements may set higher minimums for specific sectors.

Probation Period

The default probation period for indefinite contracts in Greece is 12 months, during which either party may terminate the employment with minimal notice and no severance obligation. Law 5053/2023 permits a written agreement between employer and employee to reduce probation to 6 months. Fixed-term contracts do not include a probation period unless explicitly agreed in writing.

Leave Entitlements

Greek law covers annual vacation, sick leave, family-related leave, and several additional categories. Entitlements vary by leave type, length of service, and employment arrangement.

Annual Leave

Employees on a 5-day week get 20 days of paid annual leave per year for the first two years. After 2 years of continuous service with the same employer, that goes up to 25 days. Leave accrues proportionally during the first year, and employers cannot replace it with monetary compensation except at termination.

Sick Leave

Sick leave entitlement in Greece depends on length of service. Employees with less than 4 years of service receive up to 1 month per year; those with 4–10 years receive 3 months; 10–15 years receive 4 months; and those with 15 or more years receive 6 months (ICLG Greece). For the first 3 days, the employer pays half salary while EFKA covers the other half. From day 4, EFKA provides the statutory sickness benefit directly. A medical certificate is required for absences exceeding 1 day.

Maternity Leave

Pregnant employees receive 119 days of paid maternity leave, split into 56 days before the expected delivery date and 63 days after birth. The employer pays full salary for the first month. For the remaining period, the cost is shared equally between the employer and EFKA. Job protection extends through the leave period and for 18 months after the child’s birth, during which termination is prohibited except in specific circumstances.

Paternity Leave

Fathers are entitled to 14 days of paid paternity leave, which may begin up to 2 days before the expected due date. The employer covers the full salary during this period. The leave must be taken in a continuous block within 30 days of the birth.

Other Statutory Leave

Parental leave of 4 months is available to each parent after 1 year of continuous service, for children under the age of 8. Two months of parental leave are paid by DYPA/OAED at the minimum wage rate. Bereavement leave provides 1–2 days of paid leave for the death of a close family member. Marriage leave grants 5 days of paid leave. Carer’s leave allows 5–6 days of unpaid absence per year to care for a seriously ill family member, increasing to 8–14 days for employees with multiple dependents.

Statutory Employee Benefits

All employees in Greece must be enrolled in mandatory social security through e-EFKA, which provides primary and supplementary pension coverage. EOPYY delivers national healthcare coverage, and DYPA/OAED manages unemployment insurance. Occupational risk insurance protects against workplace injuries and occupational diseases. Contribution rates are detailed in the payroll and tax section below.

On top of social security, Greek law mandates three statutory bonuses that add up to 2 extra months of salary per year: a Christmas bonus (1 month, paid by December 21), an Easter bonus (half month, paid before Easter), and a vacation bonus (half month, paid with annual leave). These are mandatory under Law 1082/1980. You cannot replace them with a higher monthly salary, and employers who miss the deadlines face fines from the Labour Inspectorate (SEPE).

Recent Regulatory Updates (2026)

Law 5239/2025 (“Fair Work for All”), enacted in October 2025, increased the daily overtime limit to 4 hours, introduced the right to refuse overtime in good faith, exempted overtime and premium pay from social security contributions, and abolished the obligation to maintain hard-copy personnel records at the workplace.

Law 5246/2025, effective January 1, 2026, reduced income tax rates by 2 percentage points across most brackets, introduced a new EUR 40,001–60,000 bracket at 39%, and provided tax exemptions for workers under 25. The national minimum wage increased to EUR 920 per month from April 2026. Greece must implement the EU Pay Transparency Directive (2023/970) by June 7, 2026, requiring salary range disclosure in job postings.

Work Permits and Visas in Greece

Work Permit Requirements

Who Needs a Work Permit

EU, EEA, and Swiss citizens have the right to work in Greece without a work permit under EU freedom of movement provisions. Non-EU/EEA citizens must obtain a work permit and residence authorization before starting employment (Greek Ministry of Labour). The employer, or the EOR acting on the employer’s behalf, is responsible for initiating the work permit application.

Eligibility and Required Documents

Employers must demonstrate that the position cannot be filled by an EU/EEA candidate through a labour market test. Required documents include the employment contract in Greek, proof of employer registration, the employee’s passport, qualifications and CV, a clean criminal record certificate, proof of health insurance, and evidence of adequate accommodation. The Decentralized Administration reviews applications to confirm the hire does not undermine local employment conditions.

Processing Time and Validity

The legal processing timeline is 40 days, but in practice permits typically take 2–3 months (EU Immigration Portal). Initial work permits are valid for up to 2 years, aligned with the employment contract duration. Employees may not begin work until the permit is issued.

Renewal Process

Renewal applications should be submitted at least 2 months before the current permit expires. Required documents include an updated employment contract, proof of continued employment and salary payment, and the original permit. Processing takes 4–8 weeks. Employees may continue working under the existing permit while the renewal is being processed, provided the application was filed before expiry.

Common Visa Types for Foreign Workers

Greece has several visa and permit categories for foreign workers. The Greek Ministry of Migration and Asylum administers all of them, and an EOR can sponsor most permit types on your behalf.

Tourist visas, student visas, and transit visas do not permit employment in Greece. Holders of these visa types who wish to work must apply for a separate work permit before starting any employment.

How an EOR Handles Work Permits

An EOR in Greece handles the entire work permit process for non-EU hires. That means document preparation, submission to the Greek Ministry of Migration, conducting the labour market test, preparing the employment contract in the right format, and tracking processing status. For EU/EEA citizens, the EOR confirms freedom-of-movement eligibility and moves straight to employment registration.

Work permit processing adds 2–3 months to the standard onboarding timeline. The EOR factors this into hiring plans and sets realistic start date expectations for non-EU hires.

Payroll, Taxes, and Social Security in Greece

Employer Contributions

Greek employers contribute 21.79% of each employee’s gross salary to social security funds, covering pension, healthcare, unemployment, and occupational risk (PwC Greece Tax Summaries). An additional EUR 20 per year per employee is charged for the EFKA summer camp programme. The monthly contribution cap applies to salaries above EUR 7,761.94 from January 2026 (EY Greece).

Employee Deductions

Employees contribute 13.37% of gross salary to social security, deducted by the employer before paying net wages (PwC Greece). These deductions are made before income tax is calculated, reducing the taxable base.

Income Tax

Greek income tax for 2026 follows progressive brackets established under Law 5246/2025, with rates ranging from 9% on the first EUR 10,000 to 44% on income exceeding EUR 60,000. A tax credit of EUR 777 applies to taxpayers without dependent children. Workers under 25 pay 0% on their first EUR 20,000 of annual employment income.

Payroll Cycle

Payroll in Greece operates on a monthly cycle, with salaries paid via bank transfer by the last business day of the month. Employers must provide itemized pay slips detailing gross salary, social security deductions, income tax withheld, and net pay. All tax withholdings must be filed with AADE (Hellenic Tax Authority), and social security contributions must be paid to EFKA by the 15th of the following month. All payments are in EUR.

13th Month Salary and Bonus Pay

Greek law mandates three statutory bonuses totalling 2 additional months of gross salary annually, under Law 1082/1980. The Christmas bonus equals one full month of salary and must be paid by December 21. The Easter bonus equals half a month of salary and must be paid before Easter. The vacation bonus equals half a month of salary and is paid when the employee takes annual leave.

For employees joining or leaving mid-year, bonuses are calculated pro-rata based on months of service during the relevant period (May 1–December 31 for Christmas, January 1–April 30 for Easter). All statutory bonuses are subject to income tax and social security contributions, increasing the employer’s effective annual cost by approximately 16.7%.

Cost of Hiring Through an EOR in Greece

EOR Service Fees

EOR providers in Greece typically charge $300–$600 per employee per month. That flat fee covers payroll processing, EFKA contributions, income tax withholding, statutory benefits administration, and compliance monitoring. Most providers do not charge a setup fee. The EOR fee is separate from the statutory employer contributions listed above.

Total Employment Cost Breakdown

The following table illustrates the total monthly cost for an employer hiring through an EOR in Greece, using a gross salary of EUR 2,000 per month as an example.

The total employer cost for a $2,000 gross salary is approximately $2,885.80 per month, or about 44.29% above the gross salary. This includes all mandatory social security contributions and the EOR service fee, but excludes statutory bonuses (which add approximately 16.7% annually) and the EUR 20/year EFKA summer camp fee.

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Benefits of Using an EOR in Greece

Using an Employer of Record in Greece gives foreign companies a practical way to hire without getting bogged down in compliance. Greek labour law is detailed and the penalty regime is real. An EOR handles the regulatory side while your company focuses on what the employees actually do.

You can have employees working in Greece within 1–2 weeks, no entity required. Compare that to the 3–6 months it takes to incorporate a Greek company. For teams testing a new market or chasing a time-sensitive hire, the difference matters.

The EOR stays on top of Law 2848/2000 (Greek Labour Code), EFKA social insurance rules, and working time regulations under Law 3863/2010. Misclassifying workers or miscalculating contributions triggers serious fines in Greece, and the EOR takes that liability off your plate. Setting up a Greek entity costs $15,000–$30,000 upfront, plus annual maintenance. An EOR charges $300–$600 per employee per month. For small teams, the math is straightforward.

EFKA contributions, mandatory holiday pay, severance calculations: Greek employment law has a lot of moving parts. An EOR stays current on regulatory changes, court rulings, and Ministry of Labour requirements so you do not have to. You can add or remove employees without restructuring an entity or going through legal dissolution.

Greek authorities closely scrutinize contractor-to-employee misclassification. An EOR establishes a clear employment relationship with full statutory protections, which avoids penalties under Law 3899/2010. Employees get their statutory 13th and 14th month bonuses, legal holiday pay, and EFKA social security coverage from day one. That helps with retention, and you do not have to manage the complex calculations yourself.

Want to start hiring in Greece without the entity setup? Contact Remote People to talk through your options.

Termination and Offboarding in Greece

Notice Periods

Greek labour law prescribes strict notice periods that vary by tenure and must be followed to avoid legal liability. Employers and employees have different notice obligations, and the notice period must be expressed in calendar months, not business days. Failure to provide adequate notice entitles the employee to compensation equivalent to the unworked portion of the notice period.

Notice must be provided in writing and become effective on the first day of the calendar month following the notice date. Collective layoffs (dismissal of more than one employee for economic reasons) trigger additional procedural requirements under Law 2644/1998, including consultation with employee representatives and notification to the Greek Ministry of Labour.

Severance Pay

Severance (indemnity) is a statutory entitlement in Greece owed to most employees upon termination without just cause. The amount depends on years of service and the employee’s last regular monthly salary. Severance is mandatory unless the employee resigns, is terminated for just cause, or is in a probationary period. The EOR calculates and pays severance in compliance with Law 2848/2000.

Calculation Method

Severance is calculated as: (Years of Service × Monthly Severance Rate) × Last Month’s Regular Salary. The last month’s regular salary includes the base wage plus all regular allowances (shift premiums, transportation allowances, fixed bonuses) but excludes overtime, commissions, or one-time payments. If an employee receives the 13th and 14th month bonuses, only the actual monthly average is used in the severance base.

Example: An employee with 6 years of service earning EUR 2,500 per month in regular pay receives 4 months of severance = EUR 10,000. If notice is provided, severance is halved to EUR 5,000. The EOR withholds income tax on severance in accordance with Greek tax law (currently 10% reduced rate on severance for eligible terminations).

Caps and Exceptions

Severance is capped at 12 months of the employee’s last regular monthly salary, regardless of tenure. This cap applies under Law 2848/2000 and cannot be exceeded even for employees with 20+ years of service. However, terminations for just cause (gross negligence, theft, violence, breach of duty) eliminate severance entitlement entirely. Probationary period terminations and fixed-term contract conclusions also carry no severance obligation.

Collective layoffs (redundancies affecting multiple employees) may entitle employees to additional severance increases under Law 2644/1998, depending on the number of workers affected and the company’s financial circumstances. An EOR ensures these exceptions are correctly applied and documented.

Grounds for Termination

Greek law recognizes two categories of termination: termination for just cause (justified cause) and termination without just cause (simple dismissal). Just cause includes serious breach of contract (theft, violence, repeated insubordination), gross negligence affecting company operations, or criminal conviction. Termination without just cause requires only compliance with notice periods and severance obligations. Protected categories (pregnant employees, union representatives, persons with disabilities under Law 3906/2011) cannot be terminated except under narrow circumstances requiring special procedures and Ministry of Labour approval.

Terminations based on race, religion, national origin, age, disability, or sexual orientation are prohibited under Greek constitutional law and EU directives and expose the employer to substantial liability. An EOR ensures termination is properly documented, complies with notice requirements, and avoids protected category violations. The employer (through the EOR) bears the burden of proving just cause if an employee disputes the dismissal in Greek labour court.

EOR vs. Other Hiring Models in Greece

EOR vs. Setting Up a Local Entity

The choice between an EOR and a Greek legal entity comes down to team size, how committed you are to the market, and how much control you need. An EOR is faster and cheaper for entry. A local entity makes sense for established operations, government contracts, and larger teams.

For startups, small remote teams, and companies testing the Greek market, an EOR removes the administrative overhead and entity costs. You keep operational control over hiring and management. And if the market does not develop as expected, you can wind down the EOR relationship without going through legal dissolution.

A local entity starts to make financial sense once you have 15 or more employees, especially if you need to bid on government contracts or want direct tax and regulatory control. It gives you brand presence, local credibility, and access to subsidised hiring programs. The trade-off is capital investment, ongoing compliance overhead, and dissolution costs if you later exit.

A common pattern: start with an EOR to build a team, then transition to a local entity once headcount and revenue justify the infrastructure. This staged approach keeps costs aligned with actual growth.

EOR vs. Hiring Independent Contractors

Greek law draws a hard line between employees and independent contractors. Misclassification carries real penalties. An EOR gives you a proper employment relationship with full statutory protections. Contractor arrangements work for short-term, project-based work with genuinely independent workers, but not much else.

Greek authorities actively investigate misclassification, particularly when workers have regular hours, receive direction from the company, or work on-site. Treating an employee as a contractor to avoid EFKA contributions or severance obligations is illegal under Law 3899/2010 and can result in back-payment of contributions, fines of EUR 3,000–10,000 per worker, and criminal prosecution. An EOR eliminates this risk by establishing a clear, documented employment relationship.

Contractors are appropriate for genuine independent work, such as consulting engagements, freelance design or writing projects, or specialized technical audits that do not involve ongoing supervision or integration into the company’s operations. However, once a contractor relationship becomes regular and dependent, the Greek labour authorities may reclassify it as employment, retroactively exposing the company to contribution arrears and penalties.

EOR vs. PEO

EOR and PEO get mixed up a lot, but they solve different problems. An EOR is the legal employer for workers in markets where you have no local entity. A PEO manages HR and payroll for employees of your existing Greek company. The question is simple: do you already have a Greek entity or not?

PEOs in Greece operate under Law 4052/2012 (implementing EU Directive 2008/104 on temporary agency work and co-employment arrangements) and must obtain a government license to provide HR outsourcing services. They handle payroll processing, benefits administration, and compliance advice but do not relieve you of legal liability for employment decisions. This shared liability model is appropriate for companies that already operate in Greece and want to reduce HR overhead without fully outsourcing employment relationships.

If you do not have a Greek entity, an EOR is the simpler option. The EOR holds full legal employer responsibility, so compliance risk sits with them. A PEO is better for companies that already have a Greek entity and want HR support without fully outsourcing employment. You can always start with an EOR and move to a local entity or PEO later as the business grows.

Public Holidays in Greece

Greece observes 13 public holidays in 2026, split between national secular holidays and Orthodox Christian religious holidays. Most employees are entitled to paid leave on these dates under Law 3175/2003. When a public holiday falls on a weekend, the subsequent weekday is usually treated as a holiday in lieu for private sector workers, though some sectors and collective bargaining agreements vary.

Many Greek public holidays follow the Orthodox Christian calendar, which differs from the Western calendar. Easter dates vary each year based on the Orthodox computation, affecting moveable holidays like Clean Monday, Good Friday, Easter Sunday, Easter Monday, and Whit Monday. Employees working on public holidays are entitled to paid leave or overtime compensation at 1.5x–2x regular wages depending on the employment contract and applicable collective agreement.

When working with an EOR in Greece, holiday pay is automatically calculated and included in payroll. The EOR ensures compliance with Law 3175/2003 and tracks holiday entitlements throughout the year. If employees work on a public holiday, the EOR coordinates the additional pay or compensatory leave in line with Greek labour standards.

How to Get Started with an EOR in Greece

Getting your first employee in Greece up and running through an EOR is simpler than most companies expect. Here is the process from start to first payroll.

• First, define your hiring needs and role specifications. Determine the position, salary range, start date, and key responsibilities for the employee(s) you want to hire. Have a clear job description and understand the Greek labour law requirements for the role (notice periods, probation eligibility, benefits structure). This clarity accelerates the hiring and contract drafting process.
• Second, partner with an EOR provider like Remote People. Contact Remote People to discuss your hiring requirements, confirm coverage in Greece, and request a cost estimate. Remote People will guide you through the EOR process, explain your obligations, and answer questions about Greek labour law, statutory benefits, and termination requirements.
• Third, collaborate on employment contract drafting. Work with the EOR to draft an employment contract that complies with Greek Labour Law 2848/2000, specifies salary, benefits, hours, and probation terms, and complies with EFKA registration requirements. The contract must be provided to the employee in Greek and any other language the employee requests.
• Fourth, complete EFKA social insurance registration. The EOR registers the employee with EFKA (Social Insurance Foundation) within one week of contract signature. This registration ensures the employee accrues pension rights, health insurance eligibility, and statutory benefit entitlements from day one. The EOR provides the EFKA registration documents to you and the employee.
• Fifth, onboard the employee and begin payroll processing. Once EFKA registration is confirmed, the employee can start work. The EOR handles all payroll processing, withholding, EFKA contributions, income tax, tax filings, and statutory reporting. You manage the employee’s work, set assignments, and direct performance, while the EOR manages all legal employment and compliance obligations.

Contact Remote People today to begin the EOR process and hire your first Greek team member confidently.

Where companies hiring in Greece expand next

Employers with operations in Greece often extend across Southern Europe, leveraging EU portability and overlapping business culture. Common expansion paths include hiring in Cyprus (EU-wide worker mobility and portable social security) and an EOR partner in Spain (shared EU compliance frameworks). Teams scaling further usually add Italy for EU-level labor law alignment, with a team in Portugal extending coverage through adjacent EU market with harmonized labor directives.