Based on the Greek degree No. 156/1994, an employer should inform in written, a new employee regarding fundamental terms of their working relationship withing the first two months of the hiring. The Greek law is harmonized with the Council Directive 91/533/EEC.
Main Terms of the employment relationship
The main terms governing the contract or the employment relationship should include the following elements:
- the form or type of the business activity
- the identity details of the parties
- the place of work, the registered office or the residential address of the employer
- the employee’s position or specialty in other words, thejob description
- the date of commencement of the employment relationship and its duration, if the relationship has been set for a certain period of time
- the total number of paid leave as well as the way and time of its granting
- the amount of compensation due and the deadlines that must be observed by the employer and the employee, in accordance with the applicable legislation
- notice periods for termination
- all types of remuneration to which the employee is entitled and the periodicity of their payment
- the duration of the employee’s normal daily and weekly employment
- reference to any applicable collective agreements that apply
Working hours
The working hours defined by individual or collective agreements are called contractual hours. In particular, with the National General Collective Labor Agreement(14/02/84)E as well as article 55 of Law 4808/2021, it was set at 40 hours per week, which amounts to 8 hours per day for a five-day work schedule and 6,40 hours per day over a six-day work schedule.
Minimum Wage and Bonus Payments
The current minimum wage in Greece is €830per month in 2024. It became valid on April 1st of 2024. Greek private sector employees should receive two extra monthly salaries as per the Greek legislation, distributed as Christmas bonus (one month’s salary), Easter bonus (half a month’s salary), and Vacation Bonus (half a month’s salary). The provisions for the 2 extra paid salaries annually are not valid for state employees. The payroll cycle in Greece is usually monthly and employees are getting paid the last working day of the month.
Paid time off in Greece
Every employee who is bound by a fixed- or indefinite-term dependent employment contract is entitled to receive annual paid leave from the very beginning of his employment (first year). This leave of 20 days is granted by the employer proportionally (percentage) based on the period of time the employee was employed by that employer. In Greece, for those who follow a 5-day working schedule, the annual leave entitlement is determined as follows:
- 2nd year of employment – allocated holiday time of 21 working days,
- 3rd year of employment – allotted holiday time of 22 working days, with the option to take the entire leave at any time of the year,
- employees who have completed 10 years of service in the same employer or over 12 years in different employers are entitled to 25 working days of holiday time,
- for over 25 years of service, additional paid holiday is provided, resulting in a total of 26 working days of paid time off
Public Holidays in Greece
| New Year’s Day,1 January | Laborday, 1st of May |
| Epiphany, 6 January | Orthodox Whit Monday, day changes, June |
| Orthodox Ash Monday, day changes | Dormition of the Mother of God,15 August |
| Independence day, 25 March | Ochi day, 28 October |
| Orthodox Easter Good Friday (day changes app. within April or May) | Christmas day, 25 December |
| Orthodox Easter Monday (day changes app. within April or May) | 2ndday of Christmas, 26 December |
Termination Process and Severance Pay
In the case of indefinite contracts, the employer should issue a written notice of termination for the working relationship which is defined as follows:
- 1 year of service – no notice during probation period
- Between 3-5 years of service – 2 months’ notice
- Between 1-2 years of service – 1 month notice
- Between 6-10 years of service – 3 months’ notice
- More than 10 years of service – 4 months’ notice
Severance pay in Greece is determined by the duration of the employee’s working relationship. In case the employer will use the written notification process for the termination of the labor agreement then the employee is entitled to half of the amount of the severance pay, as presented below. The employee is entitled to full amount of severance pay under the case that the termination process is without notification:
- 1-4 years of service – 2 gross salaries
- 4-6 years of service – 3 gross salaries
- 6-8 years of service – 4 gross salaries
- 8-10 years of service-5 gross salaries
Tax and Social Contributions
Regarding the primary social security fund (EFKA), social security contributions are withheld at a rate of 13.87% at the level of the employee and contributed at22.29% at the level of the employer. The monthly social security contribution cap for EFKA is set at EUR 7.373,53.
Income tax in Greece follows a progressive tax rate structure. Employees’ monthly remunerations are subject to certain tax deductionswhichdepends on factors such as household status and the number of children.
| Employee’s Tax Income Annually | Tax percentage |
| From 0 EUR up to 10.000 EUR | 9% |
| From 10.001 EUR up to 20.000 EUR | 22% |
| From 20.001 EUR up to 30.000 EUR | 28% |
| From 30.001 EUR up to 40.000 EUR | 36% |
| For Over 40.000 EUR | 44% |
For more information, please feel free to contact us at payroll@privelpartners.gr
