Running payroll in Greece requires more than a monthly bank transfer. The country uses a 14-payment structure, mandates three distinct bonus payments across the calendar year, and applies progressive income tax on top of social security deductions for both parties. If you’re hiring in Greece, getting these mechanics right before your first hire will save you from costly compliance gaps later.
Payroll frequency and the 14-payment structure
Greece uses a monthly payroll cycle, but Greek law entitles employees to 14 salary payments per year, not 12. The two additional payments are mandatory and structured as three separate bonus disbursements:
- Christmas bonus: one full month’s base salary, paid by December 25
- Easter bonus: half a month’s base salary, paid before Easter Monday
- Summer allowance: half a month’s base salary, paid by July 1
Together these add up to a full 13th and 14th month of pay. They’re statutory entitlements under Greek labour law, not discretionary perks, and every employer is required to pay them.
For employees who haven’t completed a full year of service, all three payments are pro-rated based on months worked. When you’re budgeting a Greek hire, the true annual cost is at least 14 months’ base salary, not 12.
Minimum wage in 2026
Greece’s national minimum wage increased to €920 per month gross on March 27, 2026. This applies to all employees regardless of sector unless a collective bargaining agreement sets a higher floor.
The minimum wage applies to the base monthly salary. Mandatory bonus payments are calculated on top of this figure, so the minimum annual floor is higher than 12 times the monthly rate.
How greek payroll deductions work
Every payroll run in Greece involves two layers of deductions: social security contributions to EFKA (the Unified Social Security Fund) and income tax withholding. Both are calculated on gross salary and remitted monthly by the employer.
Efka contributions and the earnings cap
Contributions are split between the employer and the employee:
- Employer contribution: 21.79% of gross salary
- Employee contribution: 13.37% of gross salary
You withhold the employee’s 13.37% from their gross pay and remit both amounts to EFKA each month.
EFKA contributions are subject to a monthly earnings cap of €7,761.94. No social insurance is calculated on the portion of salary above this ceiling. For employees earning above the cap, contributions apply only to €7,761.94 regardless of actual gross pay.
Income tax withholding
Greece uses a progressive income tax system. Employers withhold tax monthly based on projected annual income. Taxable income is calculated after EFKA deductions, so the employee’s share of social insurance reduces the base on which tax is applied.
The 2026 progressive tax brackets are:
| Annual taxable income | Rate |
|---|---|
| Up to €10,000 | 9% |
| €10,001 – €20,000 | 22% |
| €20,001 – €30,000 | 28% |
| €30,001 – €40,000 | 36% |
| €40,001 – €60,000 | 39% |
| Above €60,000 | 44% |
Monthly withholding is calculated by annualising the employee’s projected income, applying the brackets, and dividing the annual liability by 12. You remit the withheld amount to the Greek tax authority (AADE) each month alongside EFKA contributions.
The six-day workweek
Greece’s standard working week is 40 hours, Monday through Friday. From July 1, 2024, a six-day workweek option became available under strict conditions.
The option is only available to businesses that operate on a continuous basis, meaning operations that run without interruption across all days of the week. If your business qualifies, the sixth working day is paid at a 40% premium on top of the standard daily rate, and the maximum working week is 48 hours.
If your business doesn’t meet the continuous-operation threshold, the standard five-day, 40-hour week applies.
Ergani and payroll registration
Before an employee starts work in Greece, you’re required to notify ERGANI, the Greek Labour Inspectorate’s digital platform, at least one day before the employment start date. Late submission is a compliance violation and can result in penalties.
Every ERGANI registration requires two identifiers:
- AFM: the employee’s Greek tax identification number
- AMKA: the employee’s social security number
Both must be confirmed before you file. If you’re hiring a foreign national who doesn’t yet have a Greek AMKA, start that process well in advance of their first day. ERGANI is also used to record changes in working hours and terminations, so it’s an ongoing obligation throughout the employment relationship.
Running greek payroll through an Employer of Record
Managing Greek payroll from abroad requires a registered legal presence in Greece. Without a local entity, you can’t put employees on payroll directly or fulfil your EFKA and ERGANI obligations as an employer.
Using an Employer of Record (EOR) lets you hire in Greece without setting up a subsidiary. The EOR employs your Greek workers on your behalf, handles ERGANI registration, runs monthly payroll, calculates and remits EFKA contributions, withholds income tax, and manages all three bonus payments at the right times of year. You direct the work; the EOR carries the legal employment responsibility.
When evaluating EOR services, look for providers with direct operations in Greece and a clear process for the 14-payment structure, ERGANI pre-hire notification, and the EFKA earnings cap.
Book a demo to see how RemotePass manages Greek payroll end to end.
Frequently asked questions
Are the christmas, easter, and summer payments really mandatory?
Yes. All three are statutory entitlements under Greek labour law. The Christmas bonus equals one full month’s salary, the Easter bonus equals half a month, and the summer allowance equals half a month. Together they make up a 13th and 14th month of pay. Failing to pay on time exposes you to penalties and employee claims.
How does the efka earnings cap work in practice?
Contributions for both the employer and employee are only calculated on gross salary up to €7,761.94 per month. If an employee earns €9,000 gross, contributions are calculated on €7,761.94, not on the full amount. The portion above the cap is still paid to the employee and subject to income tax, but no social insurance applies to it.
What happens if I miss the ergani pre-hire notification?
Missing the deadline puts you in breach of your registration obligations and can result in fines from the Labour Inspectorate. The risk is compounded if an inspection finds an employee working without a prior ERGANI record. Filing on time is straightforward once you have the employee’s AFM and AMKA, so the main risk is leaving too little lead time, particularly for foreign nationals who need to obtain those identifiers first.
Can I hire a greek employee without a legal entity in greece?
Not through a direct employment contract. Without a registered presence, you’d need to either engage the person as an independent contractor (which carries misclassification risk if the arrangement looks like employment) or use an EOR to employ them compliantly. The EOR route is faster than setting up a local entity and keeps you compliant with Greek labour law from day one.
