Greece is a robust economy at the heart of the European Union (EU). As the EU’s 10th member, Greece has boasted connections to the world through its global commerce and shipping networks for centuries. Despite a tumultuous time in the aftermath of the Great Recession, Greece is recovering and re-entering a new growth cycle.

According to the latest economic forecast, Greece is expected to post a 2.3% increase in GDP in 2025. With the International Monetary Fund (IMF) reporting a 2025 GDP of $267.35 billion, the country’s investments in tourism, exports, and infrastructural renewal are already paying dividends. With a population of 10.26 million, Greece is experiencing increased hiring and lower unemployment rates.

It’s also leading to growth in salaries across the private and public sectors, with the average annual salary reaching $18,600 in 2025. Like all EU countries, Greece boasts an established legal framework governing labor and tax. Part of your obligations will be meeting payroll, and for that, there’s payroll outsourcing.

In this guide, we’ll cover how payroll outsourcing in Greece works, the services it includes, and why it’s beneficial for businesses.

What is Payroll Outsourcing in Greece?

Managing payroll means ensuring your workers are paid the correct amount without delay. It also means withholding enough to cover income taxes and social security contributions. Businesses may manage this themselves in-house, or they might decide to outsource it to a third party.

Payroll outsourcing providers rely on a network of local tax and labor professionals combined with cutting-edge platforms to simplify all of the functions of a busy payroll department. This ensures accuracy and speed, but it also guarantees compliance with Greek regulations. Typically, these partners work at scale, serving a multitude of businesses across the country and the world, which is also why they can offer such cost-effective packages.

One of the biggest advantages of Greece payroll outsourcing is that it streamlines compliance with what can be a confusing array of Greek laws. It’s the provider’s job to monitor local laws and upcoming changes, so that businesses have peace of mind. Additionally, they’ll take over interactions with the Greek authorities, including sending tax and social security payments every month.

How Payroll Outsourcing in Greece Works?

Greece is a modern economy in the developed world, and this means there’s no shortage of payroll outsourcing providers in the market, serving both local and foreign businesses. What they offer might differ, but they all provide the same selection of core services. Here’s a breakdown of the Greece payroll outsourcing services you should expect to find with every provider:

Needs Assessment

Understanding your needs is key to providing tailored services that offer value and ensure businesses only pay for what they use. It’s standard practice for every relationship to start with a consultation with the payroll provider, where you will discuss your needs and your company.

You may be asked about the number of employees you have, their employment status, contract types, salaries, and any extra benefits you offer. With this information, a payroll provider can provide targeted recommendations and a custom quote. If you’re satisfied, you’ll sign the service agreement.

Data Collection

All businesses must supply their employees’ personal and banking details, so they can be paid. Providers might also ask for historical payroll data to comply with Greek reporting regulations or for audit purposes. This data is then used to arrange pay calculations, register talent with the authorities, and set up your payroll platform.

Payroll Processing

Outsourcing payroll still leaves you in control of your employees’ working hours. You must still track time and attendance data for every pay cycle before sending it to your payroll service provider. This data allows them to run the calculations and determine each employee’s net salary and the amount that must be remitted to the Greek tax authorities.

Managing Taxes and Social Security

It’s the employer’s responsibility to withhold personal income tax and social security contributions from each of their workers’ salaries. This must be duly recorded, and then the relevant amounts remitted. Your payroll partner will make these calculations on your behalf and take care of the remittances.

Making Payments and Reporting

Your payroll provider will typically send the final calculations for your approval. If the calculations look correct, your partner will run payroll. They will send each employee’s net wage by direct deposit or another preferred payment method, and also remit tax and social security to the Greek authorities. They’ll also generate pay stubs and send these to each of your workers.

Greece Labor Law and Payroll Compliance

Following the start of the restoration of democracy in 1974, Greece has built labor laws shaped by both its own national laws and EU directives. Core to the way Greek labor relations operate is the Greek Labor Code, Law 4804/2021. Your payroll provider will help you navigate this law, alongside the various other ministerial decisions that have accompanied it, such as:

Minimum Wage and Overtime

In January 2025, Greece raised its national minimum wage to € 968 per month, following a decision by the Ministry of Labor and Social Affairs. The Greek working week is standardized at 40 hours, spread across five days and eight hours.

Overtime is permitted, but employees must receive 140% of their base salary for the sixth day worked. If an employee is required to work on Sunday or a public holiday, they’re entitled to 215% of their regular hourly wage.

Additionally, permitted overtime hours are capped, per Greek law. Currently, employees may work no more than three hours of overtime daily and no more than 150 overtime hours annually.

Taxes

Greece operates under a progressive tax system, with higher tax bands allocated to higher incomes. Income tax payments from employment are made monthly and deducted by the employer from the worker’s salary. The Ministry of Economy and Finance details the following income tax bands (in Euros):

Taxable income (EUR) Income tax rate (%)
Up to 10,000 9%
10,001 – 20,000 20%
20,001 – 30,000 26%
30,001 – 40,000 34%
40,001 – 60,000 39%
Over 60,000 44%

Note that since 2024, employees with dependent children can avail themselves of tax deductions, meaning they ultimately pay less in tax. This scales according to the number of dependent children.

Social Security

Every employee must be registered with the Unified Social Security Fund (EFKA). Following a minor decrease in required social security contributions from January 1, 2025, employees are required to contribute 13.33% and the employer 23.33% of each worker’s gross salary.

EFKA covers healthcare, pensions, unemployment, maternity, and workplace injury insurance benefits. Like income tax, it’s the responsibility of the employer to collect these contributions and remit them monthly.

What are the Benefits of Payroll Outsourcing in Greece?

Instead of learning about Greek law, you can outsource the problem to a dedicated payroll outsourcing provider who will manage it for you. More and more firms are turning to these professional outsourcing partners for reasons like:

  • Extra Efficiency: Outsourcing payroll takes the administrative burden off your business’s shoulders. Rather than worrying about payroll, you can redirect your resources to growth-focused tasks instead.
  • Lower Your Costs: Payroll providers work with so many businesses that it allows them to automate and take advantage of economies of scale, which is why it’s often cheaper to outsource than to do it yourself.
  • Streamline Your Compliance: Complying with various laws and reporting requirements is a headache no business needs. Your payroll provider guarantees compliance while watching out for any pending changes that could impact your business.

What are the Downsides of Payroll Outsourcing in Greece?

Outsourcing anything has its advantages and disadvantages. Greece payroll outsourcing services aren’t suitable for every business setup. Before you decide, take the time to understand the downsides, so that you can make the best decision for your company.

Here are the most common downsides of outsourcing payroll:

  • Data Security Problems: The cost of a data breach is immense in terms of fines, disruption, and loss of reputation. Working with a payroll provider means you’ll need to send them sensitive personal and banking data relating to your team.

    If your partner’s protocols aren’t up-to-date, the risk of your business’s data being accessed by malicious actors grows.

  • Less Control: Not every business wants to give up control of their payroll functions. When you outsource, you accept that your partner will manage payroll their way. That means accepting you’ll be giving up a level of control.

  • Lower Service Quality: Payroll outsourcing partners don’t all offer the same standard of service. If you choose the wrong partner, you could encounter mistakes, slow payments, and reporting mistakes.

    Regardless of who was at fault, any regulatory fines and legal action will ultimately fall on your shoulders. You can outsource the function, but you can’t outsource the overall responsibility.

How to Choose a Payroll Outsourcing Provider in Greece

Greece’s recovery after the financial crisis has unlocked brand-new opportunities, ushering in a new era of foreign investment and domestic growth. Partnering with a payroll service provider has its benefits, but it all hinges on choosing an appropriate partner.

If you don’t know where to start with shortlisting different providers, here’s a breakdown of the four most important facets of any payroll outsourcing service provider:

Security Protocols

Data security is critical for protecting your workers. Ask any potential partner about what they do to protect this data. Certifications like ISO 27001 and SOC 1, 2, and 3 are always green flags that they have a robust security infrastructure in place for protecting this data.

Industry Experience

How long has a particular payroll provider been in business? Side with those who can demonstrate extensive experience within the Greek market. Partners with more experience are more reliable options and are likelier to offer the quality services you expect.

Customer Reviews

The best way to discover what it’s like to partner with a particular brand is to see what other businesses are saying. Do your own research and source reviews from Google and other popular review platforms to get a true sense of the strengths and weaknesses of each provider.

Price

Establish your budget early and shortlist partners that fit into that budget. The most common pricing model is per-employee-per-month. Enquire as to whether the quoted price includes all the services you need, so there are no surprises later.

How Much Does Payroll Outsourcing Cost in Greece?

Greece payroll outsourcing costs largely depend on the size of your company and how many employees you have. Typically, costs can range from as low as $5 per employee per month to $50 per employee per month.

On a side note, some providers purposely segregate tax services from their basic packages. Ensure that the quoted price includes everything you need before signing any service agreement.

Payroll Outsourcing Alternative: Employer of Record

Organizations that have already registered to do business in Greece can hire local talent, but is it the most efficient way of dealing with human resources? An increasing number of businesses are opting to use third-party agencies to supply their workers.

Some employers may want to hire Greek workers but don’t want the headaches of HR administration, benefits administration, and payroll. Instead, they can opt to work with an Employer of Record. An EOR in Greece is essentially an agency that supplies educated, qualified workers to businesses.

The EOR handles the legal and administrative side, including HR, benefits, paid leave, and payroll, while the hiring business just has to assign schedules and tasks. This is a viable alternative to hiring Greek workers directly in the country. Although you give up a modicum of control, the hiring process becomes far more streamlined.

Payroll Outsourcing for Success in Greece

Starting a business in Greece is an opportunity to benefit from a growing economy and a highly educated workforce. Teaming up with a payroll outsourcing service provider lowers your costs and removes much of the bureaucratic burden. Outsourcing the payroll process and compliance allows you to redirect your efforts toward growing your business in the Greek market.

If you want to learn more about how payroll outsourcing works in Greece, schedule your free consultation with Remote People now.