Hiring employees in Greece means taking on a set of well-defined tax and payroll obligations. You’re responsible for social security contributions, monthly income tax withholding, mandatory bonus payments, and registration through the government’s online employment system. Get any of these wrong and you’re looking at penalties from multiple Greek authorities. This guide covers every major employer obligation so you know exactly what to budget and what to do before your first Greek hire starts work.
Efka social security contributions
Greece’s social insurance system is administered by EFKA (Unified Social Security Fund), and both you and your employees contribute to it on every payslip. The combined rate covers pension, health insurance, unemployment insurance, and work injury protection.
Employer and employee rates
The total EFKA contribution rate is 35.16% of gross salary. As the employer, your share is 21.79%. Your employee’s share is 13.37%, which you withhold from their gross pay and remit together with your own contribution. Both payments go to EFKA.
The monthly earnings cap
EFKA contributions aren’t calculated on unlimited earnings. The monthly cap for 2026 is €7,761.94. Salary above that threshold isn’t subject to EFKA contributions in that month, so for higher earners your effective social security cost as a percentage of total compensation will be lower than 21.79%.
The 13th and 14th month salary
Greek employment law requires you to pay employees more than 12 months of salary each year. These additional payments are mandatory for all employees and aren’t discretionary bonuses.
There are three separate payments that together make up the equivalent of two extra months of gross salary:
- Christmas bonus: one full month’s salary, paid by December 25
- Easter bonus: half a month’s salary, paid before Easter Monday
- Summer holiday allowance: half a month’s salary, paid by July 1
Employees who’ve been with you for less than a year are entitled to pro-rated amounts based on their length of service. You should track start dates carefully so these calculations are correct from day one.
Income tax withholding
Employers in Greece are required to calculate and withhold income tax from employees’ salaries each month and pay it to the tax authority. Taxable income is calculated after social security deductions, so your employee’s EFKA contribution (13.37%) reduces the base before income tax is applied.
The 2026 progressive tax brackets are:
| Annual taxable income | Rate |
|---|---|
| Up to €10,000 | 9% |
| €10,001 to €20,000 | 22% |
| €20,001 to €30,000 | 28% |
| €30,001 to €40,000 | 36% |
| €40,001 to €60,000 | 39% |
| Above €60,000 | 44% |
Because Greece uses a 14-payment salary structure, you’ll need to account for the timing of the bonus payments when calculating monthly withholding. The Christmas, Easter, and summer allowances are taxable income, and the withholding calculation needs to reflect them.
Minimum wage from march 2026
Greece’s national minimum wage increased to €920 per month gross from March 27, 2026. This is the sixth consecutive increase since 2019, continuing a sustained upward trend that’s worth tracking if you’re planning compensation structures for future hires.
The €920 figure is the base monthly rate across the country’s 14-payment year. Employees on or near the minimum wage will have their bonus payments calculated from this figure.
Ergani registration obligations
ERGANI is Greece’s online employment information system, and you must use it to register all hires and departures. It’s not optional and it’s not something you file retroactively.
Before a new employee’s first day, you must notify ERGANI at least one working day in advance. If you’re onboarding someone who starts Monday, you need to submit by Friday at the latest. When an employee leaves, whether through resignation or termination, you have four working days to report the departure to ERGANI.
Failing to register a hire on time is one of the most common compliance errors foreign employers make in Greece, and it can trigger significant fines from the Labour Inspectorate. Build ERGANI submissions into your standard onboarding and offboarding workflow from the start.
The six-day workweek
As of July 1, 2024, Greece permits a six-day workweek for certain private-sector employers. This arrangement applies only to businesses that operate on a continuous or 24-hour basis. It doesn’t apply to all employers.
If your business qualifies and an employee works a sixth day, you’re required to pay them an additional 40% of their daily wage for that day on top of their normal pay. The maximum working week under this arrangement is 48 hours. You can’t use the six-day structure to routinely extend hours without the premium pay obligation attached.
Hiring in greece through an Employer of Record
If you don’t have a registered Greek entity, you can’t legally hire employees in Greece directly. Setting up a local entity takes months and comes with ongoing compliance, accounting, and reporting obligations that may not make sense for a small headcount.
An Employer of Record (EOR) lets you hire Greek employees without establishing your own legal entity. The EOR becomes the legal employer in Greece, handling EFKA registration, payroll processing, income tax withholding, ERGANI filings, and mandatory bonus calculations. You manage the employee’s day-to-day work; the EOR handles everything on the compliance side.
For companies expanding into Greece for the first time or hiring a single role, what is an employer of record is a common question, and the answer is straightforward: it’s a third-party entity that employs your workers on your behalf under local law. When you compare EOR services, look for providers with established Greek payroll infrastructure who can handle the 14-month salary cycle and ERGANI requirements without manual workarounds.
Book a demo to see how RemotePass handles Greek payroll and social security compliance.
Frequently asked questions
What is the employer’s social security rate in greece in 2026?
The employer’s EFKA contribution rate is 21.79% of gross salary. The combined employer and employee rate is 35.16%. Contributions are only calculated on monthly earnings up to €7,761.94.
Are the christmas and easter bonuses taxable in greece?
Yes. The Christmas bonus, Easter bonus, and summer holiday allowance are all treated as taxable income. You’re required to withhold income tax on these payments using the same progressive brackets that apply to regular salary.
When do I need to register a new hire with ergani?
You must notify ERGANI at least one working day before the employee’s start date. If you miss this deadline, you’re at risk of Labour Inspectorate fines even if the hire is fully legitimate. Treat the ERGANI submission as part of the offer-acceptance process, not an afterthought.
Does the six-day workweek apply to all greek employers?
No. The six-day workweek option introduced in July 2024 only applies to private-sector businesses that operate on a continuous or 24-hour basis. If your business doesn’t meet that definition, the standard five-day week rules apply and you can’t ask employees to work a sixth day without separate contractual and legal arrangements.
