Looking for an Employer of Record in Greece? Here’s what you need to know

Knowing how best to engage and pay employees in Greece can be complex. To stay aligned with local labor laws, you need to understand your obligations and keep up with changing legislation.

Global companies sometimes use an Employer of Record (EOR) to compliantly onboard talent in a new country. However, using an Employer of Record in Greece may not be applicable.

Instead of using an EOR in Greece, companies can use a workforce management platform, like Payoneer Workforce Management, to simplify the onboarding and employee management process.

Learn more about Payoneer Workforce Management, or keep reading to find out what the Greece payroll involves.

How to hire employees in Greece

There are three options available to a business when hiring employees in Greece.

1. Set up a local entity: A company can register a local subsidiary to hire and pay employees in Greece, but this takes considerable time and effort.

2. Hire independent contractors or freelancers: This offers flexibility and minimizes compliance responsibilities, but there are risks associated with misclassification.

3. Workforce management platform: Companies can use a workforce management platform to engage and pay employees in Greece without a local entity and receive support with onboarding, management, and compliance tasks.

Payoneer Workforce Management enables businesses to seamlessly build, manage, and pay global teams. We help you set up localized benefits as per local laws and requirements, and assist you in mitigating risks related to contractor misclassification.

How to onboard employees in Greece

When welcoming local talent from Greece onto a global team, you need a solid onboarding process. This sets your employee up for success and helps you meet all legal and regulatory requirements.

• Payroll and benefits enrollment: Register new local employees in the payroll system and ensure they are signed up for all mandatory benefits required under local employment laws.
• Delivery and setup of work equipment: Supply local employees with the appropriate devices and tools, and ensure everything is configured so they can begin working efficiently.
• Initial week orientation: Organize an orientation session during the employee’s first week to introduce them to company guidelines, onboarding steps, and the expectations tied to their role.
• Introductions across the team and organization: Plan meetings that allow the newly onboarded talent to get acquainted with their team members and form connections with colleagues throughout the organization.

Payoneer Workforce Management enables companies to compliantly engage talent across borders through its technology platform.

Pay employees in Greece

Employees in Greece are paid in euros (EUR). Typically, pay day falls on the last day of the month, and companies have to pay employees in Greece at least the minimum wage, which is EUR 830 per month.

When you pay employees in Greece, you also pay 2 bonus payments. The 13th-month salary is paid in full by December 21st. The 14th-month salary is divided into 2 payments: ½ at Easter and ½ in the summer.

Taxes and contributions

As part of the Greece payroll process, employers need to deduct income tax (according to progressive tax slabs at rates from 22% up to 45%). Employers and employees also contribute to employee pensions.

Public health insurance is mandatory in Greece and is provided by the Greek National Health System (ESY). 

Payoneer Workforce Management is a unified, all-in-one platform. It gives you a single dashboard to manage a global workforce so you can pay talent in just a few clicks.

Employment laws in Greece

Anyone employing workers in Greece has to comply with all local laws and regulations. Important employment laws to be aware of include:

• Working hours: Employees usually work 40 hours in a standard week.
• Overtime hours: Employees should work no more than 5 overtime hours per week for a 5-day employment system, and no more than 8 overtime hours per week for a 6-day employment system.
• Probation: The probation period in Greece is 6 months. For fixed-term contracts, the probation period can’t exceed ¼ of the expected contract duration, up to a maximum of 6 months.

You can get support to stay compliant with Greece’s payroll and labor laws by using Payoneer Workforce Management’s infrastructure.

Minimum wage in Greece

The minimum wage in Greece is EUR 830 per month. This rate is liable to change, so it’s important to check for updates to the minimum wage regularly.

Employment contracts in Greece

When engaging an employee in Greece, you need to provide a written contract within a few days of the employee starting work.

The employment contract typically includes:

• Names of both the employer and the employee
• Place of work
• Job title and role, plus a brief specification of tasks
• Start date
• Contract duration, probation period, and notice periods
• Salary and remuneration
• Work schedule, including work hours and overtime compensation

Before an employee starts to work, you also need to specify the:

• Number of paid vacation days
• Details of any training provided
• Rules of any collective agreements governing working conditions
• Identity of social security institutions governing contributions

With Payoneer Workforce Management, you can onboard talent quickly and securely with localized contracts and payroll.

Leave policy in Greece

In Greece, employers must offer leave, including vacation time, public holidays, sick leave, and more.

Vacation leave and public holidays

Employees are entitled to a set number of vacation days based on their length of service.

Years of employment	Vacation leave (for a 5-day working week)	Vacation leave (for a 6-day working week)
1st year	20 days	24 days
2nd year onwards	22 days	26 days
10 years with the same employer or 12 years with different employers	25 days	30 days
25 years	26 days	31 days

Employees can carry forward unused vacation days up to March 31st of the following year. If the remaining leave is not used up, it has to be paid to the employee.

Employees are also entitled to 14 public holidays per year.

Sick leave

Employees are entitled to a set number of sick days based on their length of service.

Years of employment	Paid sick leave
1 to 4 years	1 month
4 to 10 years	3 months
10 to 15 years	4 months
15 years+	6 months

Parental leave

Mothers are entitled to a minimum of 119 days of maternity leave. They are to take 56 days before the birth of their child and 63 days afterwards. Partners are entitled to 14 days of paternity leave. Parents are also entitled to up to 4 months of parental leave.

Other leave

Employees in Greece are entitled to compassionate leave (2 working days) and wedding leave (5 working days).

Work permit in Greece

The rules for acquiring a work permit in Greece differ based on the employee’s country of origin. 

You can check government websites for details, including the Ministry of Labour and Social Security and the Ministry of Migration and Asylum.

Background check in Greece

You may like to carry out background checks before engaging a new employee in Greece. Common background checks include a criminal check, confirming a candidate’s employment and education history, and a social media check.

You likely need consent from the employee and have to disclose what background checks you are running before you start the background check process.

Employment termination in Greece

You can terminate an employee contract in Greece in the following scenarios:

• Employee resignation
• Mutual agreement between the employee and the employer
• Termination during the probationary period
• Termination by the employer due to misconduct, performance issues, absence without leave, etc

Notice of termination

Notice periods are as follows:

Years of service	Notice period
1 to 2 years	1 month
2 to 5 years	2 months
5 to 8 years	3 months

During the probation period, notice is not mandatory. However, employers give a few days notice as per policy.

Severance pay

In cases where the employer has to pay severance, the severance payable depends on the duration of employment.

Length of service	Severance payable
1 to 4 full years	2 months’ salary
4 to 6 full years	3 months’ salary
6 to 8 full years	4 months’ salary
8 to 10 full years	5 months’ salary
10 full years	6 months’ salary
11 full years	7 months’ salary
12 full years	8 months’ salary
13 full years	9 months’ salary
14 full years	10 months’ salary
15 full years	11 months’ salary
16 full years+	12 months’ salary

Company registration in Greece

Companies looking to engage and pay employees in Greece can choose to register their company in the country. To do this, you need to understand the business structures available to you and the associated legal obligations. Details on how to register your company in Greece can be found on the government website.

However, using a workforce management platform is a streamlined option. Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries, without having to set up a legal entity.

PEO in Greece

A PEO is designed to help you with HR and admin tasks for employees you already employ through your local entity.

While some countries allow the use of EORs, in Greece, companies should use compliant workforce management solutions. These platforms help manage HR and payroll for companies without a local entity. This is invaluable for international companies seeking global talent.

Explore Payoneer Workforce Management services in Greece

Working with a partner like Payoneer Workforce Management helps support global operations and access local talent. 

Our unified platform offers assistance with:

• Onboarding and offboarding
• Payroll and taxes
• Benefits administration
• Timesheets and more

Book a demo to find out more.

FAQs

1) Are EORs legal in Greece?

Using an EOR in Greece may not be an applicable model. However, you can use a workforce management platform. This can help you onboard compliantly,  engage talent across borders, and offer localized benefits as per local laws and requirements.

2) How much does it cost to hire Greek talent?

Employers can expect to pay around 24.54% on an annual salary of USD 60,000. You can use our cost calculator for an employment cost estimate.

3) Why hire Greek employees through a workforce management platform?

A workforce management platform like Payoneer Workforce Management allows you to onboard and pay employees across the globe in 70+ currencies without setting up a local entity. Get in touch for details.