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Hiring in Greece? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Greece
Employment Norms in Greece
Greece is a country in southeastern Europe with a rich history and culture. The Greek economy is diverse, with opportunities in industries such as tourism, shipping, and services. This guide provides essential information on labor laws and regulations, job opportunities, and employment norms for job seekers in Greece.
General Information:
- The currency of Greece is Euro (EUR).
- Athens is the capital of Greece.
- Greek is the official language of Greece. Legal documents can be drafted in Greek.
- As of 2022, the GDP of Greece was reported to be USD 418.97 billion.
Greek labor laws mandate minimum wage, maximum work hours, overtime pay, annual leave, sick leave, and social security contributions.
Table of Contents
- Agreements
- Onboarding Process
- Visa
- Minimum Wage
- Payroll Cycle
- Annual Bonus
- Health Benefits
- Working Hours and Overtime
- Leaves
- Social Security
- Taxes for Employers
- Taxes for Employees
- Probation
- Termination
- Severance Pay
- Employees or Contractors
- Final Words
AgreementsOnboarding ProcessVisaMinimum WagePayroll CycleAnnual BonusHealth BenefitsWorking Hours and OvertimeLeavesSocial SecurityTaxes for EmployersTaxes for EmployeesProbationTerminationSeverance PayEmployees or ContractorsFinal Words
Agreements
In Greece, labor and employment-related agreements are generally governed by the Labor Code.
Types of Agreements:
- Individual Employment Agreements: a binding contract between employer and employee.
- Collective Bargaining Agreements: negotiated between trade unions and employer associations, covering a group of employees.
Contents of Agreements:
- Must specify the employee's job title, place of work, salary and any benefits.
- Collective Bargaining Agreements must specify the duration, scope, and any amendments to individual agreements.
Onboarding Process
While there are no established onboarding process laws in Greece, the following are general best practices for effective onboarding:
- Pre-onboarding: provide necessary information to the new hire regarding the company, its culture, values, and expectations
- Provide a detailed job description and contract terms
- Orientation: organize a comprehensive orientation program, including company policies, procedures, and a tour of the workplace
- Introduce new hires to colleagues, managers, and other key stakeholders
- Provide clear training and development plans to help the new employee to succeed in their role
Some of the mandatory documents that should be submitted for onboarding include:
- Identification documents
- Tax number and social security number
- Bank account details
- Employment contract
- Health insurance documents.
Visa
Greece offers several types of visas for different purposes. Here are some of the most common visa types:
- Schengen Visa: allows for short-term travel to Greece and other countries in the Schengen area for up to 90 days within six months.
- National Visa allows for a long-term stay in Greece for purposes such as work, study, or family reunification.
- Work Visa: allows foreign workers to legally work in Greece
- Student Visa: allows foreign students to study in Greece
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Minimum Wage
The minimum wage in Greece is EUR 831.8 per month when the payment of the 13th and 14th months are combined. Otherwise, EUR 713 is the minimum wage.
Payroll Cycle
In Greece, the payroll cycle is typically monthly.
Annual Bonus
Greek law requires private-sector employers to give their employees extra two-month pay as an annual bonus. The extra pay is divided into three parts and is given twice a year. One part is given as a Christmas bonus, which is the same as one full month's salary. Half of the monthly salary is given as an Easter bonus, and the other half is given as a yearly vacation bonus.
Health Benefits
While there is no specific legislation mandating the provision of health benefits in Greece, it is a common practice for employers to offer such benefits as a way to attract and retain talent. Common practices are:
- Health insurance coverage for employees and their dependents
- Paid sick leave and time off for medical appointments
- Mental health support and counseling services
- Wellness programs that promote healthy lifestyles and work-life balance.
Working Hours and Overtime
- Work hours: In Greece, the standard workweek is 40 hours, typically divided over five working days.
- Break: Employees are entitled to a 15-minute break for every four hours and a 30-minute break for work that exceeds six hours.
- Overtime: Overtime work is permitted in Greece. The overtime rate is typically 120% of the hourly wage for the first 5 hours, 140% for the hours after 5 hours and 125% of the hourly wage for the employees working night shifts.
Leaves
Sick Leave
- In Greece, employees are entitled to paid sick leave for a maximum of 25 days per year.
- The first three days of sick leave are paid by the employer, they pay 50% of the employee's pay. From the fourth day onwards employee's sick leave is paid by Social Security.
Maternity Leave
- In Greece, new mothers are entitled to a maternity leave of 17 weeks. 8 weeks out of which should be taken before delivery. The payment of these leaves is done by Social Security and employers.
Paternity leave
- New fathers are entitled to a paternity leave of two weeks, 2 leaves should be taken before the birth of the child, and the remaining should be taken before the child turns one month old. 100% salary is paid by the employer.
Parental leaves
- Employees are allowed to take parental leaves of 120 days. Parents can divide these leaves among them, till the child is 8 years old. The minimum wage during this period is paid by Social Security for the first 2 months.
- Adoptive and foster parents can take three months of paid leave.
Annual leaves
- The usual provision for annual leave is 26 if an employee has completed one year with the employer.
Other Leaves
- Carer's leave: Employees have the option to take a maximum of 30 days off work without pay to care for a child who is sick, injured, or in the hospital.
- Civil Duty: When elections are held, employees have the flexibility to take a break from work for a period ranging from one to three days, so that they can cast their vote at their assigned polling place.
- Bereavement leave: If a close relative of an employee dies, then they are allowed to take two working days off from work as leave.
- Education leave: Employees who attend a public school or university are eligible to take leave of up to 30 days from work to appear for an examination, provided that they have been employed by the same employer for at least a year.
Public Holidays (for the Calendar year 2023)
- New Year's Day - January 1st
- Epiphany - January 6th
- Orthodox Ash Monday - February 27th
- Independence Day - March 25th
- Good Friday - April 14th
- Easter Sunday - April 16th
- Easter Monday - April 17th
- Labor Day - May 1st
- Orthodox Whit Sunday - June 4th
- Orthodox Whit Monday - June 5th
- Assumption Day - August 15th
- Ochi Day - October 28th
- Christmas Day - December 25th
- Boxing Day - December 26th
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Taxes for Employers
In Greece, employers are required to pay a range of taxes, contributions, and social security payments on behalf of their employees:
- 13.33% is contributed toward Pension Fund
- Supplementary Health Insurance contribution is 0.25%
- Contribution towards Supplementary Pension is 3.25%
- Health Insurance contribution is 4.30%
- Teleworking Expense is EUR 28 a month
- Additional Contributions or Unemployment contribution is 1.41%
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Taxes for Employees
In Greece, employees are required to pay a range of taxes and social security contributions on their earnings.
- 3.25% is the Supplementary insurance
- 6.67% is the employee's contribution toward the Pension fund
- 2.15% is the Healthcare contribution
- 1.65% is the Additional contribution
- 0.4% is the Supplementary healthcare contribution
- The personal income tax rates are between 9%-44%
- 9% upto EUR 10,000
- 22% upto EUR 20,000
- 28% upto EUR 30,000
- 36% upto EUR 40,000
- 44% over EUR 40,000
Probation
According to Greece law, the initial 12 months of work are regarded as the probationary period and probation should not exceed 12 months duration.
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Termination
In Greece, an employment contract can be terminated by either the employer or the employee.
- Termination with notice: The employer can terminate the contract with notice, which is typically based on the length of service of the employee.
- Termination without notice: The employer can terminate the contract without notice in cases of gross misconduct, a serious breach of contract, or economic reasons.
- Mutual agreement: The employer and employee can mutually agree to terminate the contract.
Severance Pay
- In Greece, employees who have been employed for at least one year are entitled to receive severance pay in case of termination by the employer without a valid reason.
- The amount of severance pay is calculated based on the length of service of the employee, and the maximum amount is set at 12 times the employee's monthly salary.
- However, if the termination is due to gross misconduct, the employee is not entitled to receive severance pay.
Employees or Contractors
- In Greece, an employee is defined as an individual who works under an employment contract with an employer and is subject to their supervision and control.
- On the other hand, a contractor is an individual or company that provides services to another company or individual, typically under a contract for services.
- Employers who misclassify employees as contractors may face penalties and fines, as well as legal action by the employee to claim their rights and benefits.
- Similarly, misclassifying a contractor as an employee can result in claims for employee benefits and compensation by the contractor.
Final Words
In Greece, employment norms are regulated by labor laws that ensure workers' rights and benefits. The country's job market is diverse, with opportunities in industries such as tourism, shipping, and services. Despite challenges in the economy, Greece offers an attractive work-life balance, a vibrant culture, and a strategic location in the Mediterranean.
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