Employee Benefits in Greece

Who Is Entitled to Employee Benefits in Greece?

In Greece, employee benefits are governed by labor laws that apply to all employees, regardless of their employment status. Whether full-time, part-time, or on a fixed-term contract, employees are entitled to certain mandatory benefits. These include paid annual leave, public holidays, social security contributions, maternity and paternity leave, and sick leave. Employers must provide these benefits to ensure workforce well-being and compliance with legal requirements.

Overview of Employee Benefits in Greece

Greece has a comprehensive employee benefits system that reflects the country's strong worker protections. Compared to other countries, Greece mandates additional salary payments during Christmas, Easter, and summer, reinforcing the cultural emphasis on work-life balance and employee well-being. While mandatory benefits provide a strong foundation, many employers also offer supplemental benefits to attract and retain top talent.

Mandatory Employee Benefits in Greece

Mandatory benefits are legally required and form the core of any employee benefits package in Greece. Here’s a comprehensive list of mandatory benefits in Greece:

Social Security Contributions

In Greece, both employers and employees are required to contribute to the social security system, which funds various benefits including pensions, healthcare, and unemployment insurance. Employers contribute approximately 22.29% of an employee's gross salary, while employees contribute about 13.87%. These contributions ensure that employees have access to essential services and financial support during periods of unemployment, illness, or retirement.

Paid Annual Leave

Employees in Greece are entitled to paid annual leave, the duration of which increases with tenure. For instance, during the first year of employment, an employee is entitled to a minimum of 20 days of paid leave, which increases in subsequent years. This leave is crucial for employee well-being, allowing time for rest and personal pursuits.

Public Holidays

Greece recognizes 12 public holidays each year, during which employees are entitled to paid leave. If these holidays fall on a Sunday, the following Monday is typically observed as the holiday. This practice ensures employees can observe significant cultural and religious events, contributing to overall job satisfaction.

Maternity and Paternity Leave

Female employees are entitled to 17 weeks of maternity leave—eight weeks before and nine weeks after childbirth. For the first month, employers cover maternity pay at full salary; thereafter, the payment is split 50/50 between the employer and social security authorities. Male employees are entitled to two weeks of paid paternity leave. These provisions support parents during critical family periods, promoting work-life balance.

Sick Leave

Employees are entitled to sick leave, with compensation contingent upon providing a medical certificate within 48 hours of illness onset. The number of sick days depends on the length of employment, typically up to 13 days during the first year, extending to 25 days in subsequent years. This benefit ensures financial stability during health-related absences.

Unemployment Insurance

Unemployment insurance in Greece provides financial assistance to employees who lose their jobs. To qualify, individuals must have completed a minimum number of working days in the preceding months and meet other criteria set by the Manpower Employment Organization (OAED). This benefit offers temporary financial support during periods of unemployment.

Minimum Wage

As of 2024, the minimum wage in Greece is €830 per month. The government has announced plans to gradually increase this to €950 by 2027. This ensures a baseline standard of living for all employees.

Christmas, Easter, and Vacation Bonuses

Employees in Greece are entitled to additional bonuses, including a full month's salary as a Christmas bonus and half a month's salary for both Easter and summer vacation. These bonuses are mandatory and provide additional financial support during significant times of the year.

Supplemental Employee Benefits in Greece

Supplemental benefits are not required by law, but can help you stand out as an employer and attract top talent. They include:

Meal Allowance

Providing meal allowances or vouchers is a common supplemental benefit in Greece. While not legally mandated, offering meal allowances can enhance employee satisfaction and well-being by reducing daily expenses.

Company Car

Offering a company car is a valued benefit, especially for roles that require frequent travel. This perk can improve job satisfaction and serve as an incentive for employees in managerial or sales positions.

Transportation Stipends

Transportation stipends help employees cover commuting costs, making the workplace more accessible. This benefit is particularly appreciated in urban areas with significant commuting expenses.

Supplemental Insurance

Employers may offer supplemental insurance plans, such as private health or life insurance, to provide additional coverage beyond the public system. This benefit can be a significant factor in attracting and retaining employees, offering them greater security and peace of mind.

Work-from-Home Allowance

With the rise of remote work, providing a work-from-home allowance to cover expenses like internet and utilities has become a valued benefit. This support helps employees maintain a productive home office environment and demonstrates an employer's commitment to adapting to modern work trends.

Gym Memberships

Offering gym memberships or wellness program access promotes employees' physical health and well-being. This benefit can lead to increased productivity, reduced absenteeism, and higher job satisfaction.

Additional Paid Time Off

Providing extra paid time off beyond the statutory requirements allows employees to rest and recharge, leading to improved mental health and job performance. This flexibility can be a significant factor in employee retention and satisfaction.

Professional Development Opportunities

Investing in employees' professional growth through training programs, workshops, or educational assistance enhances their skills and career advancement prospects. This commitment to development fosters loyalty and can improve overall organizational performance.

Tax Implications of Employee Benefits in Greece

In Greece, mandatory benefits such as social security contributions are generally exempt from taxation. However, supplemental benefits like private health insurance or meal allowances may be considered taxable income. Employers can deduct certain benefit-related expenses, such as contributions to approved retirement plans.

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How to Offer an Employee Benefits Program for Employees in Greece

Set Budget & Goals

Begin by defining clear objectives for your employee benefits program. For example, you might want to boost employee satisfaction, improve retention rates or attract top talent globally. Now, establish a realistic budget that aligns with these goals, taking into account the financial implications of offering various benefits across different regions. 

Use tools like Playroll’s employee cost calculator to benchmark your offering across regions.

Partner with Benefits Providers

Collaborate with reputable global benefits providers who have proven experience in international markets. These partners can ensure compliance, and offer insights into local regulations, cultural expectations as well as competitive standards – making your benefits program more attractive to employees in each country. 

Customize Benefits for Local Culture and Expectations

Employee needs and preferences can vary significantly across cultures. That’s why it’s so important to tailor your benefits offerings to reflect local customs, values, and expectations. For instance, while flexible work arrangements might be highly valued in one country, healthcare benefits could be more critical in another. Customizing your benefits packages accordingly can help make your offering more competitive to local talent. 

Playroll’s benefits team provides expert insights into tailoring your benefits packages in 180+ regions to local needs, helping to attract and retain top talent.

Communicate the Benefits Program to Employees

Good communication is crucial to ensure employees understand and make use of the benefits available to them. Use appropriate messaging channels to inform employees about the program's details, how to access benefits, and any relevant procedures.

Encourage open lines of communication within the organization, and update the team on any changes in the benefits program. It’s a good idea to conduct regular employee engagement surveys to get feedback on satisfaction with your benefits program, to make proactive changes as needed.

Legal Considerations for Employee Benefits in Greece

Employee benefits in Greece are governed by the Greek Labor Code. Non-compliance can result in fines and legal action. Employers should stay updated on legal changes and conduct regular audits of benefits programs to ensure compliance. Clear communication with employees regarding benefits is essential to maintain transparency and trust.

How Benefits Impact Employee Cost

Employee benefits represent a significant portion of payroll costs in Greece. Mandatory benefits are fixed costs, while supplemental benefits add flexibility to compensation packages. Employers can manage costs by offering tailored benefits that meet employee needs while optimizing expenditures. A strong benefits package improves retention, job satisfaction, and overall productivity.

How Can Playroll Help with Benefits Management in Greece?

Managing employee benefits across multiple countries can be complex, but it doesn’t have to be. Playroll simplifies the process by handling administrative tasks, ensuring compliance with local regulations, and providing access to tailored benefits packages in 180+ regions.

With everything managed through a single platform, companies can focus on supporting their teams  – wherever they are.

• Pick and choose from localized benefits packages to attract and retain global talent.
• Built-in compliance to stay ahead of evolving regulations.
• Manage leave, expenses, and more, through one intuitive dashboard.