Key Takeaways for Hiring in Greece
- Greek employment contracts must be bilingual (Greek and English) and include detailed terms on probation, notice, and compensation
- Employees receive mandatory 13th and 14th-month salary bonuses (Christmas, Easter, and vacation bonuses)
- Annual leave starts at 20 days for five-day workweeks and increases by one day annually up to a maximum of 22 days
- Notice periods scale with tenure, ranging from one month (one to two years) to four months (10+ years), with severance reduced by half if notice is provided
Continent
Europe
Capital
Athens
Currency
Euro (EUR)
Language
Greek
Payroll Cycle
Monthly
Pay Date
Last working day of the month
VAT
24%
Greece Employment Contract Overview
Greek employment contracts follow well-defined rules and must be provided in both Greek and English. Here’s what our standard contracts include and the conditions they follow.
What Do You Need To Include In A Greek Employment Contract?
To stay compliant in Greece, employment contracts must include these essentials:
Employee Information
- Full name
- ID number
- Role / Job title
- Start date
- Contract duration
- Working hours
- Probation and notice conditions
- Termination provisions
- Compensation details
Payroll
Average employer cost
22.54%
| Category | Details |
|---|---|
| Salaried Employees | Monthly, wages typically paid by the end of the month |
| 13th Salary | Mandatory 50% of salary paid at Christmas 50% split between Easter and Summer Holiday (June) |
| Avg employer tax | 22.54% |
Tax Breakdown
Employer Contributions
| Category | Rate / Details |
|---|---|
| Social Security (EFKA): | ~22.5% Includes pension, healthcare, maternity, unemployment, and occupational insurance |
Employee Contributions
| Category | Rate / Details |
|---|---|
| Social Security (EFKA) | ~15.3% |
| Solidarity Contribution | Suspended in recent years but may be reintroduced |
Personal Income Tax (progressive)
| Category | Rate / Details |
|---|---|
| Up to EUR 10,000 | 9% |
| EUR 10,001 – 20,000 | 22% |
| EUR 20,001 – 30,000 | 28% |
| EUR 30,001 – 40,000 | 36% |
| Above EUR 40,000 | 44% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 24% |
Mandatory Employee Benefits in Greece
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government |
Payroll Contributions |
Health insurance is mandatory and included within EFKA social security contributions. It provides access to public healthcare services and medical benefits. |
| Pension / Social Security | Government |
Payroll Contributions |
Pension and social security contributions are compulsory. These cover retirement pensions, disability, survivor benefits, and other social insurance protections through EFKA. |
| Other Statutory Benefits | Government / Employer |
Payroll Contributions / Additional Cost |
Unemployment insurance contributions cover work-related injury and occupational disease insurance. 13th and 14th-month salaries are mandatory: one full month’s wage for Christmas, plus half a month’s wage each for Easter and vacation. |
Leave and Holiday Entitlement in Greece
Annual Leave
Employees on a five-day workweek receive 20 days off, while those working six days per week receive 24 days. Leave increases by one day annually after the first year, up to a maximum of 22 days (five-day schedules) or 26 days (six-day schedules).
Employees become eligible for vacation leave after completing 12 months with the same employer. During their first year, employees accrue leave based on time worked. Employers may allow unused leave to be taken until the end of March of the following year.
Public Holidays
Greece observes 14 national public holidays each year:
-
January 1 – New Year’s Day
-
January 6 – Epiphany
-
Shrove Monday
-
March 25 – Independence Day
-
Good Friday
-
Easter Sunday
-
Easter Monday
-
May 1 – Labor Day
-
Orthodox Whit Sunday
-
Orthodox Whit Monday
-
August 15 – Assumption of the Virgin Mary
-
October 28 – National Day
-
December 25 – Christmas Day
-
December 26 – Boxing Day
To qualify for holiday leave, an employee must have completed at least 12 months of continuous service with the same employer.
Sick Leave
Employees unable to work due to disability remain eligible for compensation. To qualify, insured individuals must have at least 120 days of contributions in the calendar year before the disability began or 100 days of contributions within the previous 15 months (not counting the last quarter). The benefit is provided for 182 to 720 days, based on total contribution history.
After a three-day waiting period, the insured receives 50% of their daily wages. If the employee has been with the same employer for at least one year, the employer must cover the difference between the benefit and full wage for one month. If employed for less than a year, the employer covers the difference for two weeks.
Maternity Leave
Female workers insured by the Social Security Institute who have made 200 contributions over the past two years are granted eight weeks of maternity leave before childbirth and nine weeks after, with compensation equal to 50% of their previous daily wages. They’re also eligible for an additional six months of maternity protection leave after the standard maternity period.
After maternity leave, mothers may reduce their daily working hours by one hour for 30 months or opt for a two-hour reduction for the first 12 months followed by a one-hour reduction for six months. Employees who are caregivers or have children under 13 may request flexible working arrangements.
Paternity Leave
Fathers receive 14 days of paid leave following the birth of a child and may reduce their working hours to provide care without any loss of pay.
If the mother is employed and doesn’t take her leave, the father is entitled to use that time instead. Employees who care for others or have children under 13 have the right to request flexible working arrangements.
Other Types of Leave
-
Parental Leave: Employees with children up to 18 years old are allowed periodic absences during work hours, totaling up to four days annually, to meet with their children’s teachers, with employer approval and paid leave. Full-time workers may take six days of unpaid leave each year to care for a sick child under 16. This increases to eight days for those with two children and 14 days for those with three or more. After completing one year of service, employees can also take at least four months of unpaid parental leave until their child turns six. If a child is seriously injured or hospitalized, the employee may take up to 30 unpaid days off to care for them. Additionally, working parents of children under 18 who have conditions requiring blood transfusions, dialysis, or transplants are entitled to 10 days of paid parental leave annually.
-
Unpaid Leave: With written consent from both parties, unpaid leave can be granted for up to one year. During this period, the employment contract is suspended, and no social security contributions are required.
-
Caregiver Leave: Employees who have worked for at least six months are allowed up to five days of leave per year to care for a relative or another person with serious medical needs, as long as the individual lives with the employee and requires substantial care or support.
-
Dependents Leave: Employees are allowed up to six days of unpaid leave annually to care for dependent family members. This allowance increases to eight days for those with two children and to 14 days for those with three or more. Dependents include children up to age 16, children over 16 with health conditions requiring care, seriously ill spouses, and in some cases, parents or unmarried siblings with serious health issues.
-
Marriage Leave: While not legally mandated, employees usually receive between three and five days of paid leave for their wedding.
Termination and Offboarding in Greece
Terminating employment in Greece involves structured procedures around notice, severance, and documentation. Here’s what you need to know to manage terminations compliantly.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Greece Employee Resignation
Notice
Employees must inform their employer if they intend to resign. By law, the notice period required from the employee is half of what’s mandated for the employer:
| Seniority (continuous service) | Notice Period |
|---|---|
| Up to one year |
No notice required |
| Between one and two years |
15 days |
| Between two and five years |
One month |
| Between five and 10 years |
One month and 15 days |
| More than 10 years |
Two months |
End-of-Service Benefits
Severance/Gratuity
In case of resignation (voluntary termination), no severance pay is owed under Greek labor law unless otherwise agreed in the employment contract or collective bargaining agreements
Other Benefits
The employee is entitled to payment for any accrued but unused annual leave or other accrued benefits up to the resignation date.
Termination Documentation
Upon resignation, you must provide the employee with a work certificate (βεβαίωση εργοδότη) indicating the period of employment, job title, and reasons for termination if requested.
The employee may also request a certificate of employment and social security contributions (Αποδεικτικό Εργασίας και Κοινωνικής Ασφάλισης).
Employer Termination With Cause in Greece
Acceptable grounds
Under Greek Labour Law, open-ended employment contracts can generally be terminated at any time without the need for justification. Employers have the right to terminate employees either with or without cause and with or without notice. However, employees dismissed without cause are eligible for severance compensation.
Greek law does require a “serious cause” for termination in particular situations, especially when it involves protected categories of workers. These include employees who are pregnant or nursing, new fathers, and trade union officials, all of whom enjoy dismissal protection for a defined period.
Notice
The regulations for terminating an employee without notice differ depending on the job type. Professional employees must receive both severance and the salary for the notice period they would have worked.
The length of the notice depends on how long the employee has worked:
| Seniority (continuous service) | Notice Period |
|---|---|
| Between one and two years |
One month |
| Between two and five years |
Two months |
| Between five and 10 years |
Three months |
| More than 10 years |
Four months |
If you provide the notice period, the severance payment required is reduced by half.
End-of-Service Benefits
Severance
Dismissal with cause doesn’t obligate you to provide severance pay.
Other Benefits
Final wages and payment for any accrued unused leave.
Termination Documentation
You must report the dismissal to the ERGANI Information System, overseen by the Public Employment Authority (DYPA) and the Labor Inspectorate, within four working days of the termination.
You must provide the employee with a written termination letter detailing the reasons for dismissal.
You must issue a work certificate (βεβαίωση εργοδότη) confirming the duration and nature of employment.
The employee can request certificates related to social security contributions and employment history.
Employer Termination Without Cause in Greece
Acceptable grounds
Under Greek Labour Law, open-ended employment contracts can generally be terminated at any time without the need for justification. Employers have the right to terminate employees either with or without cause and with or without notice. However, employees dismissed without cause are eligible for severance compensation.
Notice
The regulations for terminating an employee without notice differ depending on the job type. Professional employees must receive both severance and the salary for the notice period they would have worked.
The length of the notice depends on how long the employee has worked:
| Seniority (continuous service) | Notice Period |
|---|---|
| Between one and two years |
One month |
| Between two and five years |
Two months |
| Between five and 10 years |
Three months |
| More than 10 years |
Four months |
If you provide the notice period, the severance payment required is reduced by half.
End-of-Service Benefits
Severance
For dismissals without cause, you’re required to provide severance pay based on an employee’s duration of service, salary level, and whether advance notice was given. Employees terminated without notice are entitled to the following severance amounts:
| Years of Service | Severance (without notice) |
|---|---|
| Less than one year | No severance |
| Between one and four years | Two months’ salary |
| More than four but less than six years | Three months’ salary |
| Six to eight years | Four months’ salary |
| Eight to 10 years | Five months’ salary |
| 10 years | Six months’ salary |
| 11 years | Seven months’ salary |
| 12 years | Eight months’ salary |
| 13 years | Nine months’ salary |
| 14 years | Ten months’ salary |
| 15 years | 11 months’ salary |
| Over 16 years | 12 months’ salary |
If notice is provided before termination, the severance owed is reduced by 50%.
Other Benefits
Final wages and payment for any accrued unused leave.
Termination Documentation
You must report the dismissal to the ERGANI Information System, overseen by the Public Employment Authority (DYPA) and the Labor Inspectorate, within four working days of the termination.
You must provide the employee with a written termination letter.
You must issue a work certificate (βεβαίωση εργοδότη) confirming the duration and nature of employment.
The employee can request certificates related to social security contributions and employment history.
Mutual Termination Agreements in Greece
A mutual termination agreement (also known as termination by mutual consent or “καταγγελία σύμβασης με κοινή συναίνεση”) is a legally valid way for an employment contract to end, provided both you and the employee agree to it.
Notice
Form
Mutual termination agreements must be written.
Notice period
No mandatory notice period applies. When both parties agree to terminate the contract mutually, they set the termination date by agreement.
End-of-Service Benefits
Severance
Severance pay is negotiable in mutual termination agreements.
Termination Documentation
A mutual termination agreement must be signed by both you and the employee and electronically submitted to the labor authorities via the ERGANI platform within four working days.
Offboarding Process for the End of Fixed-term Contracts in Greece
If the Fixed-Term Contract Ends Normally
A fixed-term employment contract typically ends upon the expiration of its agreed duration. In such cases, aside from notifying the relevant authorities, you generally have no further obligations. You’re not required to issue any formal document to the employee confirming the contract’s end, nor to provide statutory severance pay.
If the Employer Terminates Early
You can end a fixed-term contract before its scheduled expiration without notice or severance if there’s a “serious cause.”
If no valid cause exists, you must either continue employing the individual or compensate them for the remainder of the contract term.
Final Payment Timing & Immigration and Visa Compliance in Greece
Final Payment Deadline
Final payments should be made by the last working day of the month following termination, though specific timing isn’t strictly defined by statute. Best practice is to settle all amounts promptly.
Visa and Immigration Compliance
If the employee is a foreign national, you should notify relevant immigration authorities of the employment termination. Non-EU workers’ residence permits are typically tied to their employment, so termination affects their legal status.
Supporting Guides
Frequently Asked Questions
How does the 14-salary system work?
Greece mandates 13th and 14th-month salary payments on top of regular monthly salaries. Employees receive one full month’s wage as a Christmas bonus, plus half a month’s wage each for Easter and vacation. The €880 monthly minimum wage is calculated across 14 payments, not 12.
Why is employee notice half of employer notice?
Greek law intentionally structures it this way. If you must give two months’ notice (for someone with two to five years tenure), they only give one month. It protects employees while giving them flexibility to move jobs.
How does the severance reduction work when providing notice?
If you terminate without cause and don’t give notice, you owe full severance (scaling from two months’ salary at one year to 12 months’ at 16+ years). If you provide the statutory notice period, severance is cut in half.
Can employers really terminate “at any time without justification”?
For open-ended contracts, yes. But you still owe severance if it’s without cause. Protected categories (pregnant employees, nursing mothers, new fathers, union officials) have dismissal protection during specific periods. “At any time” doesn’t mean “without cost.”
What is the ERGANI system?
A mandatory online reporting system overseen by the Public Employment Authority. You must report every dismissal and mutual termination agreement within four working days of termination.
Does annual leave actually increase every year?
Yes. It starts at 20 days (five-day workweek) and increases by one day per year of service, capping at 22 days. For six-day workweeks, it starts at 24 and caps at 26.
What’s included in mandatory parental leave?
Parents get up to four days of paid leave per year during work hours to meet with their children’s teachers (for children up to 18). This requires employer approval but is a statutory right. Greece also offers six days of unpaid leave annually to care for sick children under 16, increasing to eight days for two children and 14 days for three or more.
