Employer of Record in Greece

Discover how partnering with a Greece employer of record can simplify the hiring process and help you save on employment costs.

From $199/month per employee

Greece is an attractive destination for hiring international talent. With a highly educated workforce, growing tech hubs in cities like Athens and Thessaloniki, and strong legal protections for workers, it offers a compelling environment for companies looking to expand in Europe.

Whether you’re hiring one remote employee or building a local team in Greece, it’s important to understand Greek employment laws, contract rules, and compensation expectations. This guide covers the key requirements for hiring in Greece, including your options as an employer and how to stay compliant every step of the way.

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How to Hire Employees in Greece

Before hiring in Greece, it’s important to choose the right employment structure for your business goals. The recruitment method you choose will affect your legal responsibilities, setup time, ongoing costs, and the level of control you have over your team.

Companies can hire workers in Greece through one of the following three employment methods:

Setting Up a Local Entity

Incorporating a local company or branch in Greece allows for direct employment and full operational control. This option can make sense for businesses with long-term plans in the country, but it also involves a considerable investment of time, resources, and administrative effort.

This is a good option to consider when hiring and starting business in Greece; however, it does come with more complexities and difficulties compared to the following methods.

Working with an Employer of Record (EOR)

An Employer of Record (EOR) is a third-party service that legally hires and manages employees on behalf of another company. By partnering with an EOR in Greece, the provider becomes the legal employer for your local team, while you retain control over day-to-day work and performance. This setup allows you to hire quickly without the need to establish a local entity or open a physical office. It saves time, simplifies compliance, and eliminates the complexities of setting up a business under Greek law.

Most conveniently, the Employer of Record is responsible for handling the employment contracts, tax filings, and finally, the most difficult part, staying compliant with Greek labor laws. This option is especially useful for testing a new market, scaling gradually, or managing a distributed team without building internal infrastructure.

Hiring Independent Contractors

Hiring contractors in Greece can offer a lot of flexibility for short-term or project-based work. However, the Greek government closely monitors misclassification. If a contractor is working under conditions similar to a full-time employee, such as fixed working hours, continuous supervision, or long-term assignments, penalties may apply. These can include back payments for taxes, social security, and employee benefits.

That said, we’re not here to discourage this approach. RemotePeople team can support you in staying fully compliant when working with contractors, and we offer a detailed guide on how to legally hire and compensate contractors in Greece.

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Greece Employer of Record vs Legal Entity in Greece

In Greece, you also have the option of legally registering a local entity such as a Limited Liability Company. Setting up a business in Greece is a straightforward process, provided you adhere to the country’s business regulations. To move forward with setting up a subsidiary in Greece, you must register a company name, have a local address for a registered office, and submit the company’s Articles of Incorporation. The General Commercial Registry in Greece handles all company registration details. You will have to pay the minimum capital requirement of €4500 and obtain a tax identification number (TIN) before you can open a company.

While it is a simple process to register a business in Greece, it takes time and a fair amount of resources before you can get up and running. Alternatively, you can connect to Remote People to help you find you a top EOR provider in Greece. An EOR in Greece specializes in various employee management services, helping foreign client companies hire skilled and experienced employees. In this way, employers won’t have to set up a registered business in Greece. When you hire an EOR in Greece, you will receive a variety of services, such as recruitment, the management of payroll, tax calculations, and human resources (HR) functions. The purpose of relying on a Greece EOR provider is to help you remain compliant with the employment laws so you don’t have to delay starting your business.

Using an Employer of Record in Greece

An Employer of Record (EOR) in Greece allows your organization to hire employees without setting up a local company. The EOR takes on the legal and administrative responsibilities, freeing your organization to focus on expanding your team and running your business.

Key services include:

Compensation and Tax Management: The EOR ensures employees are paid correctly and on time, with all local taxes, social security contributions, and deductions handled in compliance with Greek regulations.
Employment Contracts: The Employer of Record helps keep you legally compliant by drafting employment contracts in accordance with Greek labor laws, protecting both your business and your employees.
Onboarding and Offboarding: From offer letters to exit paperwork, the EOR manages the documentation and processes needed to bring employees on board or transition them out smoothly.
Benefits Administration: The EOR provides statutory benefits such as healthcare, paid leave, and pension contributions, and can assist in designing additional employee benefits and perks to stay competitive in the local market.
Work Permits and Visas: For foreign hires, many EORs offer visa sponsorship and immigration support to streamline international hiring into Greece.
HR and Compliance Support: A good EOR keeps your business up to date with changing employment laws in Greece, reducing the risk of compliance issues.
Employee Support: EORs often act as your employees’ local Human Resources contact, handling questions about contracts, benefits, and policies, providing you with peace of mind from day one.

At RemotePeople, we often recommend this Employer of Record model to help companies stay compliant while expanding business internationally. While the EOR acts as the legal employer, you retain full control over your team’s daily tasks, performance, and goals.

How Much Do Employer of Record Service in Greece Cost?

In Greece, the cost of hiring an EOR includes a once-off administration or management fee in addition to paying a monthly subscription. The ongoing fee can range between $500 and $1200 per employee per month. Depending on the provider and the service package chosen,

Employment and Labor Laws in Greece

It’s crucial to understand the rules that govern employment in Greece. We’ll walk you through the key legal requirements and employer obligations you need to be aware of before you start hiring.

Contracts and Requirements

In Greece, every employee must have a written employment contract. This document should clearly outline all key details, including the names and addresses of both the employer and employee, the employment start date (and end date if it’s a fixed-term contract), salary and benefits, working hours, job title, and any trial period if applicable. It should also specify how much annual leave the employee is entitled to and the terms for giving notice. Fixed-term, part-time, and full-time contracts are all recognized under Greek law and are widely used across different sectors.

Working Hours

Overtime work is allowed in Greece, but it’s pretty strictly controlled to protect workers. Employees can generally work up to 3 hours of overtime each day, with a yearly cap of 150 hours. When it comes to pay, overtime is usually compensated at 120% of the regular hourly wage for the first 120 hours. If more overtime is needed, the rate goes up. Employers also have a legal duty to inform labor authorities in advance whenever employees are scheduled for overtime.

Employees are entitled to at least 11 straight hours of rest between shifts and one full day off every week. It’s also interesting to note that many Greek workplaces, especially in more traditional industries, often have a 1 to 2-hour midday break. This split-shift setup is quite common in retail, hospitality, and certain public services, allowing for a break in the middle of the day.

Trial Periods

While Greek law doesn’t make trial periods mandatory, they’re definitely a common practice. These periods typically last up to six months. However, it’s worth checking if any specific collective bargaining agreements might set different or longer limits.

During this trial phase, either the employer or the employee can end the contract with very short notice. Still, employers are expected to follow fair procedures and provide a good, legitimate reason for any dismissal, avoiding arbitrary decisions.

Payroll and Employment Taxes in Greece

Payroll Cycles

Employees in Greece usually get paid once a month, with salary payments usually made on the last working day. In addition to their regular monthly salary, employees are entitled by law to three extra payments each year: a full extra month’s pay at Christmas, and half a month’s pay at both Easter and in the summer (usually around July). These bonuses are not optional; they’re a legal requirement and must be paid separately from the standard monthly salary unless otherwise agreed in writing.

All compensation must be calculated in accordance with Greek employment law, which includes withholding the appropriate amount for income tax and employee social security contributions. Employers are also required to pay their own share of social security contributions, which generally amount to just over 22% of the employee’s gross salary. These payments fund pensions, healthcare, unemployment benefits, and other statutory protections.

Employee Benefits

Employers in Greece must provide a core set of required benefits. This includes contributions to the social security system, paid public holidays, comprehensive parental leave, and sticking to minimum wage rules. Beyond these mandatory benefits, many forward-thinking companies choose to offer a wider range of extra perks to attract and keep top talent in a competitive market.

These additional benefits might include private health insurance, extra pension contributions, flexible working hours, and remote work options. An EOR can be a great help for companies in setting up and managing both the required and the extra employee benefits, making sure everything is perfectly aligned with Greek labor law.

Time Off and Leave in Greece

Sick Leaves

Employees in Greece can get sick pay benefits if they’ve contributed to the Social Security system for at least 180 days in the last five years. Employers are responsible for covering the first 15 days of sick leave.

After that, the Social Security system takes over the compensation. If sick leave is directly linked to a workplace accident or a recognized occupational illness, pay might start from day one of absence and usually involves higher payment rates. You’ll always need a medical certificate from a qualified doctor for sick leave claims, and any ongoing leave needs to be regularly reviewed and approved by a public health service doctor to ensure everything is legitimate.

Other Types of Leave Greek labor law also covers other important types of leave for various life events:

Leave Type	Duration	Notes
Marriage Leave	5 days	Paid leave for employees upon marriage
Bereavement Leave	2 days	Paid leave for the death of a close family member
Unpaid Family Care Leave	Up to 2 years	Unpaid leave to care for a seriously ill family member

Maternity and Paternity Leave

In Greece, both parents are entitled to a generous 16 weeks of paid leave after a child’s birth or adoption, supported by the Greek Social Security System. The first six weeks of this leave are mandatory and must be taken right after the event. The remaining 10 weeks offer more flexibility and can be used all at once or in separate blocks, as long as they’re taken within the child’s first 12 months.

This leave isn’t transferable between parents, meaning each parent uses their own entitlement. On top of this, employees can also request: two one-hour breaks daily for breastfeeding or childcare until the child is 9 months old; a reduced work schedule (with adjusted pay) for up to 12 months after their parental leave ends; and longer periods of unpaid parental leave for specific childcare or compelling personal reasons.

Terminations and Severance in Greece

Legal Grounds for Termination

In Greece, you can’t just end an employment contract without a legally valid reason. The country’s labor laws are very protective of employees, meaning all dismissals must be clearly justified and follow specific rules. Legitimate reasons for ending employment usually include:

Termination Type	Description
Disciplinary Dismissal	For cases involving serious misconduct, repeated absences, or violation of company policies.
Objective Dismissal	Due to business-related reasons such as role elimination, restructuring, or redundancy.
Business Closure or Downsizing	Occurs when the company shuts down or reduces its workforce significantly.
Fixed-Term Contract Expiration	Happens when a temporary contract ends as scheduled without renewal.

In all cases, employers are legally required to give written notice of termination, clearly explaining the reason for the dismissal and backing it up with proper documentation. If a dismissal is found to be unjustified or didn’t follow the correct procedure, it can lead to significant court-ordered compensation or even the employee being reinstated to their job.

Notice Period

For most employment terminations in Greece, a minimum notice period of 15 calendar days is typically required. However, some individual employment contracts or collective bargaining agreements might require longer notice periods. If an employer decides not to provide the required notice period, they must instead pay the employee an amount equivalent to the compensation they would have earned during that notice period.

Severance Compensation

Severance pay is generally mandatory in Greece when an employee is let go due to redundancy or other objective reasons. The standard way to calculate severance is 20 days’ worth of compensation for each year of service, with a total cap set at 12 months’ worth of compensation.

On the other hand, if a dismissal is due to disciplinary reasons, severance pay isn’t usually owed, unless the dismissal is later legally determined to have been unfair or without proper justification. Employees always have the fundamental right to challenge terminations through the Greek labor courts.

Connect with EOR Services in Greece, with Remote People

Greece offers a strong labor market, clear employment protections, and access to top talent. With its strategic location and growing tech hub status, it’s an ideal spot for international hiring and business.

Using an Employer of Record (EOR) is often the simplest and most cost-effective way to hire in Greece without setting up a local company. The EOR acts as the legal employer, handling all administrative and legal responsibilities, while you continue to manage your team’s day-to-day work, culture, and performance. If you’re ready to hire in Greece, get in touch with our team at Remote People. We’ll help you build your team, stay compliant, and focus on what matters most: growing your business.