An Employer of Record (EOR) in Greece is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer.
Discover the key considerations and essential details you should be aware of before you hire your remote team in Greece.
On this page: Facts about Greece | Employment Contracts in Greece | Employment Laws in Greece | Social Security Contributions in Greece | Personal Income Tax in Greece | Employee Benefits in Greece
Key Facts About Greece
Greece’s Push Toward Becoming a Regional Tech Hub
Greece is steadily emerging as a promising destination for startups, digital nomads, and foreign investors. Ranked 19th in Western Europe with three cities in the global top 1,000 startup ecosystems, Greece’s transformation is being driven by government-led initiatives and a dynamic tech-savvy workforce.
Recent policy changes include the expansion of the Golden Visa program to allow third-country nationals to obtain residency by investing €250,000 or more in Greek startups listed on the National Startup Registry. This complements two new talent-attraction programs introduced in the past year aimed at welcoming skilled foreign professionals and entrepreneurs, reflecting what Prime Minister Kyriakos Mitsotakis calls a “global war for talent.”
Greece also benefits from:
- A highly educated, English-speaking workforce
- Strategic location between Europe, the Middle East, and Africa
- An expanding IT and innovation sector
Success stories like Viva Wallet and PeopleCert—both reaching unicorn status—demonstrate the country’s growing potential.
To further enhance competitiveness, Greece is making strides in reducing bureaucracy, improving digital infrastructure, and offering incentives such as:
- The Digital Nomad Visa
- Tax benefits for patent-heavy startups and green investments
- Continued digitization of public services
According to Randstad’s HR Trends and Salary reports, professional digital platforms like LinkedIn and Xing remain among the most effective tools for recruiting talent in Greece.
Notable startups from Greece include:
- Workable (recruitment software)
- Blueground (furnished rentals)
- Hack The Box (cybersecurity training)
Greece’s commitment to innovation, paired with reforms and investment-friendly policies, positions it well to become a regional tech and talent hub in the coming years.
Employment Contracts in Greece
In Greece, employment contracts are regulated by national labor law, the Civil Code, and various presidential decrees and EU directives. The legal framework clearly defines types of employment and safeguards employee rights. Understanding these distinctions is essential for compliance and effective workforce management under an Employer of Record (EOR) arrangement.
Types of Employment Contracts
- Open-Ended (Permanent) Contracts
These contracts do not specify an end date and remain in force until legally terminated by either party. Termination requires proper notice and severance as per Law 2112/1920. - Fixed-Term Contracts
These specify a set duration or the completion of a specific project. According to Article 8(3) of Law 2112/1920, if the fixed term is not justified by the type or nature of the work and is used to circumvent severance obligations, the contract is treated as an open-ended one.
Legal presumption: As per Presidential Decree 180/2004, amended by Law 3986/2011, if:
- Fixed-term contracts are renewed more than three times, or
- Their total duration exceeds three years
without objective justification, they are presumed to meet the employer’s permanent needs and are converted into open-ended contracts.
- Trial Periods
Under Law 3899/2010, the first 12 months of an open-ended contract can be treated as a probationary period. During this time, employment may be terminated without notice or severance, unless otherwise agreed.
Dependent Employment vs. Other Contracts
The Greek legal system differentiates dependent employment contracts from other service-based arrangements based on substantive working conditions, not merely contract wording:
- Dependent Employment: Involves direct supervision, set hours, fixed remuneration, and integration into the employer’s hierarchy (Article 648, Civil Code).
- Project Contracts: Focus on delivering a specific result; no continuous supervision.
- Independent Services Contracts: The worker provides services autonomously, choosing when, where, and how to work.
Presumption of dependency: According to Law 2639/1998, amended by Law 3846/2010, if a person provides services in person, exclusively or primarily to the same employer for nine consecutive months, it is presumed to be dependent employment, even if labeled otherwise.
Employer’s Managerial Rights
Employers in Greece have the right to manage business operations and set employment terms. However, this managerial right is limited by:
- Article 281 of the Civil Code – which prohibits abusive exercise of rights
- Collective Labor Agreements
- Company regulations
- The Constitution
Employers must exercise this right in good faith, considering factors such as the employee’s personal and family situation, age, and mobility before making substantial changes to work conditions.
Informing Employees of Contract Terms
As per Presidential Decree 156/1994, the employer must provide a written document outlining all essential terms of employment—regardless of whether the agreement was made verbally or in writing.
Classification: Employee vs. Worker
Greek law categorizes workers based on the nature of their duties:
- Employees (υπάλληλοι): Typically perform intellectual or administrative work and are paid monthly.
- Workers (εργάτες): Typically perform manual labor and are paid daily.
This distinction affects termination rights, compensation, and benefits but is determined by the actual nature of the work, not just the contract language or method of payment.
Employment Laws in Greece
Minimum Wages
Minimum Wage and Length of Service Increases in Greece (as of April 2025)
As of April 1, 2025, the Greek government has revised the national minimum wage and daily wage under Ministerial Decision No. 8233/27.3.2025 (Government Gazette B’ 1476):
- Minimum Monthly Wage for Employees: €880.00
- Minimum Daily Wage for Manual Workers: €39.30
These amounts apply to full-time employees and workers under dependent employment contracts.
Length of Service (Seniority) Increases
Under Article 33(3) of Law 5053/2023 (Government Gazette A' 158), employees and workers earning the statutory minimum wage or daily wage are entitled to seniority-based increases for previous periods of service before 14.2.2012 and after 1.1.2024 with any employer and in any role.
For Employees:
- +10% increase for each completed 3 years of service
- Capped at 30% for 9 years or more of service
For Manual Workers:
- +5% increase for each completed 3 years of service
- Capped at 30% for 18 years or more of service
These increases are applicable only for those paid the statutory minimum.
Mandatory Compliance with Statutory Minimums
As clarified in Article 103(1)(b) of Law 4172/2013, both individual and collective employment contracts are not permitted to set full-time or part-time salaries below the legally mandated minimum wage or daily wage, including their pro-rated equivalents for part-time roles.
Working Hours in Greece
Greek labor law defines overtime and sets specific limits, procedures, and compensation requirements.
Types of Overtime
Non-Legal Overtime
Non-legal overtime occurs when employees work beyond the standard 40 hours per week but do not exceed 45 hours in a 5-day work system or 48 hours in a 6-day system. In such cases, the additional hours are compensated at a rate of 20% above the employee's regular hourly wage.
Legal Overtime
Legal overtime is when employees work more than 45 hours per week under a 5-day system or more than 48 hours under a 6-day system. These extra hours must be compensated at a rate of 40% above the regular hourly wage.
Overtime Limits
In the private sector, employees may work up to a maximum of 3 hours of overtime per day and 150 hours per year. These limits are strictly regulated to prevent excessive working hours.
Overtime Declaration
Employers are required to register any planned overtime work in the ERGANI PS system before the overtime begins. Overtime that is not properly registered, exceeds the daily or yearly limits, or lacks the necessary approval from the Ministry of Labor is considered illegal.
Illegal Overtime Penalties
If illegal overtime is identified, employers may face penalties. Additionally, employees who perform such overtime must be compensated at a rate of 120% above their standard hourly wage.
Payroll Cycle
In Greece, employees are typically paid monthly, with salary payments made on a fixed date—usually by the last working day of each month.
In addition to the standard 12 monthly salaries, Greek employees are entitled to mandatory 13th and 14th month salaries, paid in the form of:
- Christmas Bonus (full monthly salary),
- Easter Bonus (half monthly salary),
- Vacation Bonus (half monthly salary).
These bonuses are distributed at specific times during the year and are required by law.
Probation Period
Background
- Law 5053/2023 incorporates EU Directive 2019/1152, which limits probation periods to ensure workers aren’t kept in uncertainty for too long.
- Before this law, employers in Greece often used informal or loosely defined probation periods (up to 12 months), sometimes with unclear legal terms.
What the New Law Says (Law 5053/2023 + Presidential Decree 80/2022)
For Permanent (Open-Ended) Contracts
- Probation period can last up to 6 months.
- During this time, the contract is on trial, and can be terminated without notice or severance, unless agreed otherwise.
For Fixed-Term Contracts
- Probation is proportional to the contract length.
- Cannot exceed ¼ of the total contract period, with a maximum of 6 months.
- No second probation period allowed for renewals in the same position.
What Happens After the Trial Period?
- If the employee is kept on, the employment is considered to have started from the original hire date, including all rights and benefits.
- If the employee is not retained, the contract ends automatically, and the time worked counts toward social security and other rights.
But What Does "Automatic Termination" Mean?
There’s legal uncertainty:
- Option A: Employer decides freely to end or continue the contract.
- Option B: No formal process required for termination during probation, but fairness still applies.
- Option C: Treated as a conditional agreement, where ending the contract must still respect good faith.
If Employment is Suspended During Trial
- The probation period is extended by the duration of the suspension (e.g., sick leave, parental leave).
Employee Protections Still Apply
Even during probation, labor protections remain (e.g., working conditions, safety, working hours).
Ongoing Legal Concern: The 12-Month Rule
- Despite the new 6-month probation rule, another law still allows termination without notice or severance during the first 12 months of permanent employment.
- This conflicts with the EU’s 6-month probation limit and has raised concerns about compliance with EU law.
Notice Period
Termination of Permanent (Indefinite-Term) Employment Contracts in Greece
Types of Termination:
- Without notice: Considered irregular/improper; ends employment immediately.
- With notice (regular termination): Ends after a notice period, depending on the employee's service duration.
Notice Period Requirements:
- 1 month: 12 months – 2 years of service.
- 2 months: 2 – 5 years of service.
- 3 months: 5 – 10 years of service.
- 4 months: 10+ years of service.
Severance Pay:
- With notice: Employee receives half of the standard severance pay.
- Severance is based on the period from hiring until notice, not the notice period itself.
- Trial period: First 12 months of employment can be terminated without notice or severance, unless otherwise agreed.
Employer Options During Notice:
- May release employees from work duties (partially or fully).
- Employees still receive full salary until notice ends.
- Employees may work elsewhere during this time without affecting severance or termination rights.
Personal Income Tax in Greece
Income Taxation for Individuals in Greece
Income taxation in Greece is governed by Law 4172/2013 (Income Tax Code), with Law 5100/2024 applying additionally to multinational and large domestic groups.
- Residents of Greece: Taxed on their worldwide income
- Non-residents: Taxed only on their Greek-sourced income
- Taxable income: Gross income minus deductible expenses
1. Personal Income Tax
1.1 Income from Employment and Pensions
What qualifies:
- All cash and in-kind payments earned through employment or pension
Exempt or non-taxable benefits include:
- Travel, food, and accommodation expenses covered by employer
- Employer-covered nursery/daycare costs (up to €5,000/year)
- Birth-related support (up to €5,000 per child, with additional €5,000 for each existing dependent child)
- Tips up to €300/month
- State benefits to the unemployed, disabled, and vulnerable groups
Tax Rates (Employment & Pensions)
|
Income Range (€) |
Tax Rate |
|
0 – 10,000 |
9% |
|
10,001 – 20,000 |
22% |
|
20,001 – 30,000 |
28% |
|
30,001 – 40,000 |
36% |
|
40,001 and above |
44% |
Tax Reductions (2024 and onward)
|
Dependent Children |
Tax Reduction (€) |
|
None |
777 |
|
1 |
900 |
|
2 |
1,120 |
|
3 |
1,340 |
|
4 |
1,580 |
|
5 |
1,780 |
|
Each additional child |
+220 |
- Reductions are capped at the total tax owed.
- For income over €12,000, the reduction decreases by €20 per €1,000 of income exceeding €12,000.
Employee Benefits in Greece
Mandatory (Statutory) Benefits
These are required by Greek labor law for all employees:
1. Social Security (e-EFKA) Contributions
- Covers pension, healthcare, unemployment, sickness, maternity, and more.
- Shared between employer and employee.
2. Annual Leave
- 20–26 working days per year depending on seniority and type of work.
- Pro-rata for part-time employees.
3. Public Holidays
- At least 9 public holidays observed nationally.
- Some sectors may offer more depending on collective agreements.
4. Sick Leave
- Employees are entitled to paid sick leave.
- Payment shared between employer and e-EFKA depending on the duration.
5. Maternity Leave
- 17 weeks total (8 weeks before and 9 weeks after childbirth).
- Paid through e-EFKA.
6. Paternity Leave
- 14 days paid, available after childbirth.
7. Parental Leave
- 4 months of unpaid leave per parent.
- First 2 months can be paid (by DYPA) under certain conditions.
8. Christmas, Easter, and Holiday Bonuses (Doro)
- Known as the “13th and 14th salaries.”
- Paid in parts: Christmas bonus (full monthly salary), Easter and Summer Holiday bonuses (half salary each).
9. Unemployment Insurance
- Eligible employees receive support via DYPA after job loss.
10. Supplementary Insurance
- Covers additional pensions or healthcare; mandatory in certain professions (e.g. engineers, doctors).
Common Non-Mandatory (Supplementary) Benefits
While not legally required, many Greek employers offer these perks to attract and retain talent:
- Private health insurance
- Meal vouchers or food allowance
- Transportation allowance or company car
- Flexible working hours or remote work
- Performance bonuses
- Mobile phone or device allowance
- Professional training or upskilling programs
- Gym or wellness benefits
- Childcare vouchers or subsidies
In summary, working with an Employer of Record (EOR) in Greece is an effective way for companies to hire employees and establish a local presence without the need to set up a legal entity. The EOR handles all employment-related responsibilities, including payroll, taxes, social security contributions, employment contracts, and HR compliance, in line with Greek labor laws. Greece has complex regulations around benefits, insurance contributions, and employee rights, and an EOR helps businesses stay fully compliant while reducing legal and administrative workload. This makes it easier to onboard local talent quickly, manage operations efficiently, and scale with confidence. With Greece’s growing role as a gateway to Southeastern Europe and the EU, using an EOR provides a flexible, cost-effective solution for international expansion.
Southern Europe: EOR Greece | EOR Italy | EOR Spain | EOR Portugal
Social Security Contributions in Greece
In Greece, social security contributions differ based on the type of work arrangement. Full-time employees contribute through a shared system with their employer, while freelancers and self-employed individuals pay fixed monthly contributions based on selected insurance categories. Each system has its own rules, rates, and benefits.
Insurance Contributions for Private Sector Employees in Greece
Private sector employees in Greece contribute a total of 20% of their salary toward the main pension. This contribution is split between the employee and the employer, with 6.67% paid by the employee and 13.33% by the employer.
These contributions are based on the employee’s regular monthly earnings, up to a ceiling of €7,572.62 per month for 2025. Certain types of income are excluded from this calculation, such as allowances for marriage, childbirth, or death, and extra pay for night shifts, overtime, Sundays, or public holidays. However, Christmas and Easter bonuses and holiday pay are included and subject to contributions.
Employers are responsible for deducting the employee’s share of the contribution directly from their salary and paying both their own and the employee’s shares to the national insurance fund, e-EFKA. These payments must be declared monthly through the Detailed Periodic Declaration (APD) system.
This contribution system applies to all employees covered by Greek private sector funds. These include IKA-ETAM (the main fund for salaried workers), OAEE (which now also covers marine and tourism agents who are employees), ETAA (covering professionals such as engineers, doctors, and lawyers), and ETAP-MME (for workers in the media and press sector).
Some groups qualify for contribution reductions. New mothers receive a 50% discount on their personal contributions for one year. Employers hiring employees under the age of 25 benefit from a 6.66 percentage point reduction in their contribution rate. Employees earning the national minimum wage may also qualify for state subsidies to support their contribution payments.
For high-risk jobs, such as construction, mining, and underwater work, additional contributions are required. Heavy and unhealthy occupations incur an extra 2.2% contribution from the employee and 1.4% from the employer. For mining or underwater work, these rise to 4.3% and 2.7% respectively. Additionally, employers in certain sectors must pay a 1% occupational risk fee.
Pensioners who return to work are required to pay the standard insurance contributions along with an additional charge of 7.7%—or 10% in some cases—on their salary to e-EFKA. This extra contribution is paid entirely by the pensioner and not shared by the employer.
For supplementary pensions, an additional 6% is contributed on top of the main pension, split equally between the employer and the employee (3% each), and calculated on the same salary ceiling of €7,572.62 per month. This applies broadly, including to engineers, lawyers, and doctors.
Finally, some employees are also required to pay into a lump-sum retirement benefit scheme. This is generally calculated as 4% of their salary. The rules differ depending on whether the employee was insured before or after 1993. Certain professionals instead contribute fixed monthly amounts, which are currently set at €26, €31, or €37.
Insurance Contributions for Freelancers and Self-Employed in Greece
Freelancers and self-employed individuals in Greece are required to make social insurance contributions to the Unified Social Security Fund (e-EFKA). These contributions cover main pension, supplementary insurance, and one-time benefits. The amount depends on the insurance category chosen by the insured, with special provisions available for new professionals, working pensioners, and those with limited clients. Below is an overview of the key rules and contribution amounts.
Main Pension Contributions (e-EFKA)
Freelancers and self-employed individuals in Greece are required to pay monthly social security contributions based on an insurance category they select. If no category is chosen, they are automatically placed in the 1st (lowest) insurance category. Individuals may request to change their insurance category, either to a higher or lower one, but such changes are only processed once per year. New professionals within their first five years of starting a business or practice have the option to enroll in a special insurance category with lower contributions. However, this reduced rate is available only once during their career—even if they pause and later resume their professional activity. It’s important to note that pensioners are not eligible for this special category.
Main Pension Contribution Rates (from 1 Jan 2025)
Insurance Category
Monthly Contribution
1st
€180.58
2nd
€216.70
3rd
€274.95
4th
€346.01
5th
€429.89
6th
€582.50
Special Category
€108.35
Who Must Pay
Freelancers and self-employed who previously belonged to:
Contribution Reduction for Mothers
Women freelancers who give birth are entitled to a 50% reduction in social security contributions for one year. This benefit does not apply if they are already enrolled in the special reduced-rate category for new professionals.
DPY (Service Provision Receipts) with Up to 2 Clients
Freelancers or self-employed individuals in Greece who work with one or two regular clients can request to be treated similarly to salaried employees for social security purposes. This applies when they are paid through a DPY (Δελτίο Παροχής Υπηρεσιών), which is a Service Provision Receipt issued for their services.
If eligible, the freelancer can request that their social security contribution be split like it is for employees:
To qualify:
This arrangement helps reduce the freelancer’s financial burden by shifting part of the insurance cost to the client.
Service Receipts (Title of Acquisition)
Service Receipts (Title of Acquisition) refer to payments made for occasional or project-based work without a formal employment relationship.
Working Pensioners
Pensioners who resume freelance or self-employed work in Greece must continue to pay standard social security contributions. In addition, they are required to pay an extra charge (called a “resource”) as follows:
If the pensioner provides services through DPY (Service Provision Receipts), an extra 10% resource is also applied on the net payment value.
Certain groups, such as disabled pensioners, are exempt under Law 5078/2023 (Art. 114). In all cases, total contributions are capped at 12 times the national pension.
Supplementary Insurance Contributions
One-Time Benefit Contributions