Country Payroll Guide Greece

Key Facts

Capital

Athens

Date format

dd/mm/yyyy

Currency

Euro (EUR)

VAT

the standard rate is 24%

Contributions

Minimum Wage

Minimum Wage

650 EUR per month and 29.04 EUR per day. 663 Euro from January 2022.

Payroll

Payroll Cycle

Monthly

13th Salary

Employees are entitled to 13th and 14th salaries.

Income Tax

Employee Income Tax (1)

0 - 10000 EUR - 9%

Employee Income Tax (2)

10001 - 20000 EUR - 22%

Employee Income Tax (3)

20001 - 30000 EUR - 28%

Employee Income Tax (4)

30001 - 40000 EUR - 36%

Employee Income Tax (5)

Over 40001 EUR - 44%

Working Hours

General Working Hours

40 hours per week.

Overtime

The maximum time per day are 2 hours and 120 hours per year. These hours are paid at a rate of 140% of the regular salary. For more than 120 hours per year, an approval from the Greek Labor of Ministry is required.

Leave

Paid Time Off

Employees who work 5 days a week are entitled to a minimum of 20 prorated days of leave per year at full pay. Employees are entitled to one extra day of leave for each additional year of work (up to a total of 22 days). An employee with 10 consecutive years of service for the same employer or 12 years of service with any employer is entitled to 25 days leave per year.

For 25 years of service or more, employees are entitled to 26 days’ leave for a 5 day work week and 31 days for six-day work. Employees also receive an annual leave bonus equal to the pay for leave, with a maximum of half a salary.

Public Holidays

7 public holidays and 4 optional holidays.

Sick Days

In case of sick leaves, the employer is obliged to pay the employee: 13 days only in the 1st year and 25 days from the 2nd year onwards. The days are paid by both the employer and the EFKA.

Maternity Leave

Maternity leave lasts 119 calendar days. The first month is paid by the employer, and the rest is paid by the EFKA. 56 calendar days should be taken before the childbirth date and the remaining 63 calendar days after the birth. Instead of receiving reduced daily working hours, mothers may agree with their employers to receive an extra 3.5 months’ leave paid by the employer.

Paternity Leave

Fathers receive 14 days of paid leave after the birth of their child and 10 days in cases of part-time employment of the father. The leave can be granted two days before the birth or after the birth of the child.

Parental Leave

Parents receive 4 months which is granted continuously or in part until the child turns 8 years old. Parents must have completed at least 6 months of employment with the same employer to be eligible.

Other Leave

• Marriage leave – 5 working days.
• Leave for children’s school grading – 4 working days for each child who is not older than 16 years old. This kind of leave may be used by one of the parents.
• Bereavement leave – 2 working days for the death of husband/wife, child, parents, brothers.
• Elections leave – the duration is relating to the distance between the polling station and the workplace. Generally, 1 to 3 working days.

Termination

Termination Process

Indefinite employment agreement is considered to be employment with a probationary period for the first 12 months of the agreement, which may be terminated during the probationary period without notice and without severance pay, unless otherwise agreed by the parties. After the first 12 months the employee cannot be terminated without prior written notice from the employer, which will take effect from the day after the employee is notified.

These provisions apply for all forms of dismissals, including collective dismissals for employees that are not workers. Terminating workers doesn’t require any notice. A fixed-term contract can be terminated bye the employee or the employer before the end date immediately without notice period for a ‘Significant reason’. Significant reason includes events during the employer employee relation which make it impossible to continue the agreement in good faith.

If a significant reason exists, the employer is not obliged to pay compensation. Furthermore, article 40 of law 3986/2011 mentions that a fixed-term employment contract, which includes a term for early termination in accordance with requires severance calculation is automatically converted into an indefinite-term employment contract upon termination.

Notice Period

If the employment relationship is based on a fixed term contract, it can be terminated immediately without notice by either the employee or employer. However, a reason (i.e. breach of contract, failure to comply with the terms of the contract, etc.) is given. If no reason is given, the employee is able to make claim in court and is able to receive compensation for the wages that would have been received until the contract expiry date.

If the employment contract is for an indefinite period, the length of the notice period depends on the length that the employee has been employed:

• Number of Years: 1-2 years Notice Period: 1 month
• Number of Years: 2-5 years Notice Period: 2 months
• Number of Years: 5-10 years Notice Period: 3 months
• Number of Years: 10 years+ Notice Period: 4 months

Severance Pay

For non-workers with indefinite employment agreement the severance pay is calculated as follows:  Up to 1 year of service – no severance pay required From one year of service – the severance changes according to the length of service and can be up to 12 months of severance.

Probation Period

12 months.

Visa

Employment Visa

Non-EU employees must acquire a Type D visa before arriving in Greece. This allows employees to stay in Greece for over 90 days to work. Once an employee has arrived in Greece, they must apply for a residence/work permit within 30 days at the local municipal office or police station. Work permits typically last one year. Renewal of a work permit must be done at least 60 days before its expiration.