How Do You Pay Remote Employees in Greece?

Step-by-Step Process for Paying Remote Employees in Greece

1. Verify that the worker is correctly classified as an employee under Greek labor laws, avoiding misclassification as an independent contractor.
2. Register your company with the Greek Tax Authority (AADE) and obtain a tax identification number (AFM).
3. Open a local bank account to facilitate payroll transactions in euros, as required by Greek banking regulations.
4. Collect required documentation, including the employee's AFM, social security number (AMKA), and banking details.
5. Set a compliant pay schedule based on Greek labor laws, typically monthly payments.
6. Process payroll ensuring correct deductions for income tax, social security contributions (EFKA), and any applicable local taxes.
7. Pay employees via compliant methods such as SEPA bank transfers and provide itemized payslips as required by law.
8. Remit payroll taxes and social security contributions to the appropriate authorities by the 20th of the following month.
9. File monthly payroll returns with the Greek Tax Authority and annual returns with the relevant social security institutions.
10. Issue annual income statements to employees for tax filing purposes by the end of February each year.

What Are The Legal Ways To Pay Greece-Based Employees From Another Country?

Local Bank Transfer

• Best for: Employers with a registered Greek entity paying employees via domestic SEPA transfers in EUR.
• Pros: Cost-effective, fast settlement via the SEPA network, and widely accepted by Greek employees and banks.
• Limitations: Requires Greek bank accounts and tax registrations; cross-border funding may introduce FX costs.
• Compliance note: Payroll must comply with Greek tax laws and wage payment regulations; wages must be paid in euros and reported under the Greek tax system.

Direct Payroll Services

• Best for: Companies with a Greek entity that want to outsource payroll calculations, filings, and compliance.
• Pros: Ensures accurate tax withholding, automated filings with the Greek Tax Authority, and reduces administrative burden.
• Limitations: Still requires entity setup, tax registrations, and oversight of compliance with Greek labor laws.
• Compliance note: Subject to Greek tax regulations and social security contributions; no restrictions on paying in EUR, but strict reporting and deposit schedules apply. Playroll's Global Payroll services manage this end-to-end.

Employer of Record Platform Disbursement

• Best for: Foreign companies hiring Greek-based employees without establishing a local entity.
• Pros: The EOR becomes the legal employer, handling payroll, tax filings, benefits, and compliance with Greek authorities.
• Limitations: Higher cost than direct payroll and less direct control over employment contracts.
• Compliance note: EOR providers manage registration, tax remittance, and reporting obligations with Greek tax and social security agencies. Explore Playroll's Employer of Record services.

Contractor Payment Platforms

• Best for: Paying Greek-based independent contractors for project-based or flexible work arrangements.
• Pros: Simplified onboarding, cross-border payments, and reduced administrative overhead.
• Limitations: Does not cover employee benefits, tax withholding, or labor law protections; higher misclassification risk.
• Compliance note: Greek labor laws enforce strict classification rules; contractor platforms do not assume employer obligations. Explore Playroll's Contractor Management Platform.

What Taxes Do I Need To Handle for Greece Employees?

• Income Tax (AADE): Withheld from employee wages based on progressive rates ranging from 9% to 44%.
• Social Security Contributions (EFKA): Total of approximately 40.56% split between employer and employee — employer pays around 24.81%.
• Solidarity Contribution (AADE): Additional tax on high incomes, ranging from 2.2% to 10%.
• Local Taxes: May apply depending on the municipality, requiring additional withholding and reporting.

Use Playroll's payroll tax calculator to estimate your total employer costs in Greece.

What Are the Biggest Compliance Risks When Paying Employees in Greece?

• Worker misclassification (Greek Labor Inspectorate): Misclassifying employees as contractors can result in fines and liability for unpaid benefits under Greek labor laws.
• Payroll tax errors (AADE): Incorrect tax withholding or late payments can incur penalties and interest charges from the Greek Tax Authority.
• Permanent establishment risk (AADE): Employing workers in Greece may create a taxable presence for foreign companies, triggering corporate tax obligations.
• Late filings and reporting penalties (AADE and EFKA): Missing deadlines for payroll tax filings can result in significant fines and interest charges.
• Social security non-compliance (EFKA): Failure to register or remit social security contributions can lead to audits and penalties.
• Wage law violations (Greek Labor Inspectorate): Non-compliance with minimum wage or overtime laws can lead to back pay claims and civil penalties.

Pay Your Remote Employees in Greece

Pay your remote employees compliantly in Greece, without the heavy lifting. We support local payroll where you have your own entity or for international hires with Playroll’s EOR services.

• Accurate payroll processing: Gross-to-net processing, compliant payslips, and on-time payments — aligned with Greek pay frequency requirements and itemized payslip obligations.
• Taxes & contributions covered: Registrations, filings, and remittances to the Greek Tax Authority and EFKA, ensuring compliance with all relevant jurisdictions.
• Built for local compliance: We handle statutory obligations and year-end reporting, including income statements and social security filings in Greece.

Book a demo to run payroll in Greece with confidence.