Greece has made meaningful strides recently by raising its minimum wage in response to rising living costs and a strong economy. However, if you’re an employer planning to hire in Greece, it’s important to grasp the numbers, regulations, and implications. 

We’ll share what employers doing business in Greece need to know about the minimum wage and the extra contributions affecting payroll. For businesses that need convincing on why Greece should be their next location for expansion, we’ll offer insights on the positives.

Here’s What to Know About the Minimum Wage in Greece

On April 1st, 2025, the country’s national minimum wage climbed to €880 per month. That’s a solid 6.4% jump from 2024’s €830. This fifth consecutive rise since 2019 signals more than incremental policy tweaks. It’s part of Greece’s ambitious growth plan and an attempt to provide better living conditions for its citizens.

However, employers need to adjust their payroll budget to accommodate this increase. Note that contracts cannot legally undercut these floors. It doesn’t matter if it’s full-time, part-time, or project-based roles. 

For context, Greece’s minimum wage has climbed 35% since 2019:

Effective DateMonthly(€)Daily(€)
Feb 2019€650€29.04
Apr 2024€830€37.07
Apr 2025€880€39.30

From this historical trend, you can expect wages to increase in the future. Hence, smart employers will factor this into their payroll projections.

Going Beyond the Minimum Wage

Hiring in Greece involves more than paying the minimum wage. We’ll share the details to help you understand what mandatory contributions are involved.

Social Benefits & Allowances

The increase in minimum wage has a knock-on effect on what benefits employers must pay. Here’s a summary:

  • Unemployment benefits rose from €509 to €540 per month.
  • Marriage allowance lifted to €88 (10% of the new minimum).
  • Maternity pay jumped €449.69 over nine months.
  • Parental leave support increased by €99.90 for two months.

This highlights the higher cost for businesses in terms of social security contributions, but it may lead to a drop in employee financial stress.

Manager Pay

In Greece, calling someone a manager requires meeting salary thresholds tied to the minimum wage. Let’s have a look at how this plays out in practice:

  • Department heads must earn at least €3,520/month, which is 4x the minimum wage.
  • Senior leaders must earn at least €5,280 per month, which is 6x the minimum wage.

Misclassifying someone will lead to legal exposure, which involves fines and back pay.

You Must Pay Bonuses

Holiday perks in Greece are not optional and something you need to factor into your payroll calculations. Let’s break down the mandatory bonuses:

  • Christmas: Full month’s salary.
  • Easter: Half a month’s salary. 
  • Summer vacation: Half a month’s salary.

Therefore, the employee benefits on minimum wage come to €880 + €440 + €440, which equals an extra €1,760 per year.

The Tax Threshold Tightrope

While gross wages rise, some lower-income workers face a hidden squeeze. Earning over €10,000 per year might make them cross into taxable territory. This can potentially reduce net gains. Therefore, employers should flag this in payroll communications to reduce surprise deductions.

Greece’s Wage in the EU: Where Does €880 Stand?

The minimum wage of €880 in Greece seems modest beside Germany’s €2,161 or Luxembourg’s €2,638. However, context reshapes this picture because the cost of living in Greece is also lower. 

Also, the extra benefits change this picture, since other countries don’t have the same level of extra contributions. Then there’s the minimum manager pay, which applies a significantly higher minimum wage for employees in those positions. 

Let’s compare the monthly minimum wage in Greece with surrounding countries:

CountryMonthly Gross (€)
Greece €880
Albania€406
North Macedonia€542
Bulgaria€551
Turkey€708
Romania€814
Croatia€970

Furthermore, Greece’s minimum sits at just 41% of median earnings. This is below the EU Directive’s 50-60% adequacy benchmark.

Strategic Takeaways for Employers Hiring in Greece

Integrate Digital Employment & Reporting Systems

Greece mandates the use of the ERGANI platform and digital work card systems. That’s especially the case in industrial or retail sectors. Furthermore, employers must register contracts, salary payments, and hours electronically. 

Any underreporting can trigger big fines. To stay compliant, you can invest in PEO services and simplify the hiring process. These services can help with the HR aspects of business expansion in Greece.

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Social Contributions & Payroll Costs

Employers in Greece contribute around 22–24% above gross wages to EFKA for pensions, healthcare, unemployment, and risk coverage. Furthermore, employees kick in around 15–16%, thereby affecting net take home pay. 

Payroll budgeting needs to factor this in upfront. For example, a €1,000 gross salary can involve an additional €220 to €240 in employer contributions. This significantly changes overall labor costs and is critical for forecasting hiring expenses.

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Build Compliant Contracts

Every employee in Greece must receive a written contract or digital notification within 1 to 2 months. The contract must include everything from job scope to hours and salary. Note that probation can last up to 12 months, but termination protocols still apply.

Additionally, you must lay out overtime rates and shift plans. You’ll find that clear contracts help avoid union disputes, inspectorate fines, and legal claims.

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Overtime and Flexible Scheduling

Greece enforces a 40-hour workweek, with overtime capped at around 120 hours yearly. Daytime overtime pays 120% of base salary, while nighttime is at 125–140%. Note that the newly permitted six-day workweek may include a 40% day 6 overtime premium.

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Stay Ahead of Labour Law Developments & Transparency Rules

Greece recently adopted EU directives on pay transparency and digital card usage. Hence, legislative drafts will tie minimum wage to productivity and inflation by 2027. Changes to managerial salary thresholds mean contracts and pay structures may need adjustments.

Top Reasons to Hire Employees in Greece

Are you still unsure if hiring in Greece is the right move for your business? Then consider the following benefits:

  • Leverage local market insight: Greek employees bring deep familiarity with the domestic market. Also, their fluency in Greek and established networks help with customer engagement. This is especially important for industries like tourism, shipping, and tech.  
  • Tap into a skilled and educated workforce: Greece offers a pool of highly trained professionals, like engineers, scientists, maritime specialists, and digital talent. Furthermore, employers can benefit from these advanced skills at lower costs compared to Western Europe.
  • Incentives and government schemes: Greece offers generous incentives for businesses and talent. Notably, there’s a 50% tax break for eligible professionals who are relocating. 
  • Infrastructure & EU market access: Greece is strategically located and serves as a bridge between Europe, the Mediterranean, and the Middle East. Furthermore, it has modern ports, airports, and EU-funded connectivity. As an EU member, it offers tariff-free access to a large market.

Future Trends to Consider

This €880 minimum wage is not an endpoint. The government’s roadmap targets €950 per month by 2027, aiming to lift the average wage to €1,500. Therefore, businesses looking to hire in Greece need to factor these increases into their payroll calculations. 

However, Greece’s centralized minimum wage approach simplifies baseline planning. You don’t need to consider collective bargaining agreements or different rates for each region.

Hire Employees in Greece With Our Help

Despite the increase in Greece’s minimum wage, there are multiple positives of hiring in the European country. Greece offers language fluency and a skilled workforce in tech, engineering, and maritime sectors. 

However, hiring in Greece is much easier with an Employer of Record. These services focus on compliance, solving HR problems, and finding the best candidates for your roles. 

Do you want to access the best EOR right now? Then check out our Employer of Record Service in Greece. We have helped many businesses successfully expand in Greece, and yours could be the next one.