Employer of Record in Greece

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Greece if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Greece below, to avoid any compliance issues.

Employment Contract Requirements

As per Greek Decree No. 156/1994, aligned with Council Directive 91/533/EEC, employers must provide written information to their employees regarding fundamental terms and conditions of employment within the initial two months of their hiring. This written agreement should encompass the following details:

• Identification of both parties
• Starting date (and duration for temporary contracts)
• Workplace and working hours
• Job description, specifying the professional group
• Base salary (including compensation and benefits)
• Total number of allocated holidays
• Notice periods for termination
• Mention of any applicable collective agreements

Onboarding Process

We can help you get a new employee started in Greece quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Employers in Greece must ensure compliance with labor laws regarding working hours and overtime to maintain a fair and lawful workplace. Standard working hours are set at 8 hours per day and 40 hours per week for employees aged 16 and above, with provisions for those aged 18 and older to work up to 9 hours per day and 45 hours per week.

Overtime work is permitted, subject to legal limits, and compensation rates are higher, especially for work done on weekends or public holidays. Daytime overtime is compensated at 120.00% for the first two hours, with subsequent hours paid at 140% of the regular hourly rate. For businesses operating on a rotating shift basis with a five-day workweek, employment on the sixth day is permissible if registered in the "ERGANI II" Information System before the employee's shift, with compensation at the daily wage plus 40%.

Under certain conditions, an employee may now work up to 13 hours per day for single or multiple employers, provided that rest periods and maximum weekly working hours are strictly adhered to, and statutory overtime pay is paid. Employers must also provide appropriate rest periods and ensure compliance with night shift and weekend work regulations to foster a compliant and positive work environment.

As of 2025, Greece's minimum wage has increased to €880 per month for full-time employees (white-collar workers), with a daily rate of €39.30 for blue-collar workers.

This represents a 6.02% increase from previous rates. The minimum wage is projected to reach €968 per month by 2027. This wage applies uniformly across all industries and worker categories, ensuring a standardized baseline for compensation. Part-time workers receive proportional pay based on their hours worked, while interns and trainees may or may not be entitled to minimum wage depending on the nature of their engagement. Expatriates employed under Greek contracts are also subject to the same minimum wage regulations.

Employers in Greece must stay informed about periodic wage adjustments, as the government reviews the minimum wage based on economic conditions, including inflation and employment trends. Additionally, industry-specific agreements may lead to higher wages in certain sectors. Ensuring compliance with wage laws is crucial for businesses operating in Greece, as violations can lead to legal consequences. With the government's commitment to gradually increasing wages, employers should plan for future labor costs and adjust their payroll strategies accordingly.

Hiring in Greece means navigating local labor laws, mandatory employee benefits, payroll taxes, and strict employment regulations. These requirements aren’t always intuitive, especially if your team lacks in-country legal or HR expertise. An Employer of Record steps in as the legal employer for your hires, managing all compliance-related responsibilities. This includes issuing locally compliant contracts, registering employees with relevant authorities, processing payroll, and handling social security contributions and taxes in line with national laws.

By handing over these complexities to an EOR, your business avoids costly compliance errors and the time required to master local employment standards. You can focus on growing your team and operations while trusting that the legal and administrative foundation is solid. Whether you're making one strategic hire or building out an entire team, the EOR keeps you compliant, removes guesswork, and reduces the risk of legal or financial penalties, without requiring you to open a legal entity or maintain a local HR team.

Employers in Greece must manage key payroll taxes, including income tax withholding and social security contributions, which involve specific rates and deadlines. Accurate calculation, timely submission, and compliance with regulations are essential to avoid penalties and maintain smooth operations. Social security contributions are shared between employers and employees, with rates determined by gross salary.

As of 2025, the total social security contribution rate is 35.16%, with employers contributing 21.79% and employees contributing 13.37% of gross salary, up to a monthly cap of EUR 7,572.62. Income tax withholding follows a progressive scale with rates of 22% for the first EUR 20,000, 28% for EUR 20,001 to 30,000, 36% for EUR 30,001 to 40,000, and 44% for income above EUR 40,000.

Employers must also stay updated on additional levies or industry-specific obligations, such as the annual administrative fee of €20 per employee and potential housing fund contributions depending on industry and company size. Using payroll management software can help employers consolidate payroll data, automate calculations, and ensure compliance with Greece's tax laws efficiently.

Running payroll in Greece is complex, especially when you're hiring without a local entity. Local laws determine everything from tax withholdings and reporting deadlines to benefit contributions and currency requirements. Missteps can lead to fines, payment delays, or unhappy employees. An Employer of Record takes this burden off your plate by handling the full payroll process. Acting as the legal employer, the EOR ensures you remain compliant with all payroll-related obligations, while still allowing you to manage your team’s day-to-day work and performance.

Key Ways an EOR Supports Payroll in Greece:

• Compliance Assurance: Ensures payroll aligns with local tax laws, labor regulations, and statutory deadlines.
• Payroll Processing & Tax Management: Calculates salaries, applies correct tax withholdings, and submits required reports.
• Benefits & Social Security Contributions: Manages employer obligations for pensions, health insurance, and other legal entitlements.
• Contract Generation & HR Administration: Drafts compliant employment contracts and supports onboarding, terminations, and HR tasks.
• Currency Payments: Issues timely salary payments in local currency, ensuring employees are paid accurately and on time.

In Greece, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. The key visa types include the Employment Visa, Seasonal Work Visa, Self-Employed Visa, and Digital Nomad Visa. Employers must ensure compliance with local labor regulations when sponsoring foreign employees.

In Greece, full-time employees are entitled to a minimum of 20 days of annual leave, increasing with tenure, while those on a six-day workweek receive 24 days. Public holidays are granted separately, with 14 national holidays observed each year.

Additional statutory leave includes paid sick leave (covered by employers for up to one month, then by social insurance), 17 weeks of maternity leave, 14 days of paternity leave, and 4 months of unpaid but job-protected parental leave. Employers must comply with Greek labor laws, maintain accurate leave records, and clearly communicate leave policies to ensure compliance and employee well-being.

In Greece, employers are mandated to provide essential benefits such as social security contributions, paid annual leave, public holidays, maternity and paternity leave, sick leave, unemployment insurance, adherence to the minimum wage, and additional bonuses during Christmas, Easter, and vacation periods. To attract and retain top talent, many employers also offer supplemental benefits including meal allowances, company cars, transportation stipends, supplemental insurance, work-from-home allowances, gym memberships, additional paid time off, and professional development opportunities.

It's crucial for employers to understand and comply with Greek labor laws regarding these benefits to ensure legal compliance and promote employee well-being.

Administering employee benefits in Greece requires more than just offering a standard package. Local labor laws often mandate specific entitlements, from health insurance to paid leave, and the rules can change without warning. Greece also has unique standards for what an attractive, competitive benefits package looks like. For businesses without in-country expertise, meeting these obligations and expectations can quickly become risky and expensive. An Employer of Record acts as your compliance partner, ensuring all benefits are provided according to the latest legal requirements and without administrative strain on your internal team.

Beyond compliance, an EOR brings clarity and consistency to a process that’s often complex and fragmented. They handle enrollments, ensure accurate employer contributions, manage communications with local providers, and keep everything properly documented. This means employees get what they’re entitled to, and you avoid the headache of navigating benefits systems in a foreign market. Whether you're hiring one person or building a larger team, an EOR provides a clear, dependable structure that lets you offer competitive benefits without taking on unnecessary risk or workload.

In Greece, employment termination is governed by strict labor laws that protect both employers and employees. Employers must provide written notice based on the employee's tenure, with notice periods ranging from one to four months. In cases of gross misconduct, termination can be immediate without notice. Employees who have completed at least 12 months of service are entitled to severance pay, which increases based on their length of employment. The severance amount is calculated based on the employee's salary and years of service, reaching up to 12 months' salary for long-serving employees.

The termination process requires employers to provide formal written notice, settle all final wages, and report the termination to labor authorities through the "ERGANI II" system within four days. Unfair dismissals, particularly those based on discrimination or retaliation, can be legally challenged in court. Collective redundancies must follow a structured consultation process with employee representatives and government notification. By adhering to these regulations, employers in Greece can ensure legal compliance and fair treatment of employees during termination.