Planning to hire employees in Greece? Here’s a quick guide

Greece has a well-educated and multi-lingual workforce, particularly in shipping, tourism, technology, and professional services. If you are planning to hire employees in Greece, you must have a proper understanding of the employment landscape in the country. 

The employment regulations in Greece are governed by the Ministry of Labor and Social Insurance and monitored by the Hellenic Labor Inspectorate. There are specific legal obligations around social insurance contributions, employment contracts, and other labor laws. 

In this guide, we will look at how to hire in Greece in compliance with the labor laws. Also, we will explore how a workforce management platform like Payoneer Workforce Management can help engage talent in Greece, manage payroll, and support local compliance. 

How to hire employees in Greece?

To hire in Greece, you can choose from the three options mentioned below:

1) Set up a legal entity in Greece

To set up a legal entity in Greece, you have to first choose the entity type (IKE, EPE, or AE) and reserve the company name. Then, prepare all the incorporation documents and register them through GEMI, a one-stop shop service for registration number (GEMI number). 

Open a corporate bank account for payroll and taxation. After incorporation, apply for a Greek tax identification number (AFM). Lastly, register with the social security authority, the Electronic National Social Security Fund (e-EFKA). 

All these processes take time to complete and involve expenses as well. However, businesses have control over their operations with a legal entity in place. 

2) Hire independent contractors

When you are looking for flexibility and lower administrative burdens in the hiring process in Greece, you can hire independent contractors in the country. 

Ensure that you have a strong contractor agreement so that contractors operate as sole traders. They must have a Greek tax ID (AFM). 

Also, beware of misclassification risks, as that might lead to penalties and fines. 

3) Partner with a workforce management platform

One of the streamlined ways to hire employees in Greece is to use a workforce management platform in the country. 

Payoneer Workforce Management assists in the entire process of employment in Greece. It helps handle employee onboarding and termination, payroll management, leave entitlements, navigate compliance with rules and regulations, taxation, and more. 

Where to find employees in Greece

Here are some of the most effective channels to find employees in Greece:

1) Online job portals

In Greece, there are many online job portals and platforms where you can find talent matching the job profile. Some popular options in the country are as follows:

• skywalker.gr
• JobFind.gr
• EURES
• kariera.gr

2) Public and private employment and recruitment agencies

Employment and recruitment agencies in Greece have a great knowledge of the current job market. There are public as well as private recruitment agencies in Greece. 

DYPA, the public employment agency, handles public job postings and unemployment records. Private agencies offer temporary as well as permanent staffing solutions. 

3) University career centers

If you are planning to hire fresh graduates from top institutions in Greece, get in touch with the university career centers. 

4) Recruitment with a workforce management platform’s support

A workforce management platform, such as Payoneer Workforce Management, supports your business with the hiring process in Greece, including onboarding, benefits, compliance with local laws and regulations, payroll, taxation, and more. 

So you can focus on identifying local candidates who meet your requirements.

Onboarding employees in Greece

A smooth onboarding process for employees in Greece helps you stay compliant and sets the right tone for new hires, much like in Denmark. 

Here are the things covered in onboarding:

• Before the joining of the employee, employers have to submit a hiring declaration through the ERGANI information system, the official Greek labor portal. 
• Employees must receive a written employment contract, in English & Greek, from the employer outlining the role, salary, working hours, etc. The contract must be submitted to ERGANI and comply with the Greek labor law. 
• The employee must have a valid AFM (Greek Tax Identification Number) for payroll processing. 
• The employee must be registered with EFKA (e-EFKA) for social security enrolment and coverage. 
• Add the new hire to the payroll system, factoring in Greek income tax brackets and social security contribution rates. 
• There will be orientation and required training for the employees to ensure a productive start. 

Key employment laws in Greece

Employment laws in Greece are heavily codified under Presidential Decree 80/2022 and centered around Law 4808/2021. 

The key regulations include strict working hours, dismissal protections, mandatory 14-day salaries per year, and more. 

Other key employment laws and regulations in Greece are as follows:

• Law 3850/2010 – The Code of Laws for Health and Safety of Workers.
• Law 5239/2025 – Maternity leave for foster parents, new reforms for foreign workers, and 4-day work options.
• Law 4443/2016 – This is equal treatment legislation, prohibiting discrimination on grounds of gender, race, or religion. 

Apart from these employment regulations in Greece, here are some other important things to keep in mind:

Employment contracts

The Ministry of Labor and Social Security governs the employment contracts in Greece. Here are some of the most common kinds of employment contracts in Greece. 

• Definite or fixed-term contracts: It is clear from the name that these employment contracts are for a fixed time, with a fixed starting and ending date. In Greece, a fixed-term contract can only be renewed thrice within three years.
• Indefinite contract: These are open-ended contracts with no set duration, typically used to onboard permanent employees, with terms.
• Part-time contracts: In part-time contracts, employees work fewer hours than full-time employees.
• Short-time employment contracts or project-based contracts: Short-term or project-based employment contracts are usually for completing a particular work or project. There is no fixed timeframe for these contracts. 

Employment contracts in Greece are primarily governed by the Presidential Decree 156/1994. The contract must be in writing and duly signed by the employee and the employer. 

Key components in the employment contract are as follows:

• Details of both parties, including the name and addresses of employees and employers.
• Job description including employee’s roles and responsibilities, job title, and classification. 
• Probation period
• Date of commencement of employment in Greece with contract duration. 
• Remuneration, including components such as bonus, allowances, etc. 
• Working hours and overtime.
• Leave entitlements.
• Termination and notice period

Employee benefits

Employees in Greece are entitled to different benefits. Some of the most important ones are as follows:

Working hours in Greece

As per employment regulations in Greece, working hours in the country are 40 hours per week. 

Overtime in Greece

Employees in Greece get overtime if they work beyond the normal working hours. 

• Employees can work overtime 5 hours per week for a 5-day week.
• They can work overtime for 8 hours per week for a 6-day week. 

Employer’s tax obligations

Employers in Greece have certain social security and taxation obligations. These must be clear when you recruit employees in Greece. 

• The individual income tax in Greece has a progressive tax slab from 22% up to 45%. 
• The social security contributions amount to 13.87% at the employee level. It is 22.29% at the level of the employer. The total contributions stand at 36.16%. 

Termination and severance pay in Greece

Termination of employees in Greece must be based on valid grounds. In case an employee finds the dismissal to be unfair, the employer has to face severe legal consequences. 

The reason for termination varies from one employee to another in the country. Here are some common scenarios where termination is possible in Greece:

• Employee and employer mutually agree on the termination. 
• The employee resigns for some reason. 
• Termination during probationary period.
• The employer can terminate an employee due to misconduct, performance issues, absence without leave, and more. 

Notice period

There is no mandatory notice period during probation. However, after that, the notice period varies depending on the service tenure of the employee. Here are the details:

Severance pay

Severance pay is applicable for employees in Greece. The term of service determines the amount of severance pay in the country. 

Explore Payoneer Workforce Management in Greece

Payoneer Workforce Management can assist you in engaging employees in Greece. The workforce management platform not only streamlines the hiring process in Greece, but it also offers support with navigating compliance in local labor laws and regulations and more. 

Global businesses can hire, pay, and manage employees and contractors in Greece without setting up a local entity.

Book a demo now!

FAQs

1. How does Payoneer Workforce help hire in Greece?

Payoneer Workforce Management is a workforce management platform that assists in engaging employees in Greece without setting up a legal entity in the country. The platform also supports onboarding, termination, payroll management, employee benefits, taxation, time-off management, and more. 

2. Does Greece have a leave carry-forward policy?

Yes, Greece has a leave carry-forward policy. The unused days of leave can be carried forward up to the 31st of March of the following year. If the employee does not use the leave, it will be paid to the employee. 

3. Do employees have to pay income tax in Greece?

Yes, to maintain compliance, employees have to pay income tax in Greece. The individual income tax in Greece has a progressive tax slab from 22% up to 45%. 

4. Are employees in Greece entitled to an annual bonus?

Yes, employees in Greece are entitled to 13th and 14th-month salaries. While the 13th-month salary is paid at Christmas, the 14th-month salary is divided into two payments – one at Easter and the other half in the summer.