Greece payroll and benefits guide
What global businesses need to know about payroll in Greece
Did you know that average wages in Greece are over 60% lower than they are in France or Germany? Combine these potential savings with European Union membership and a well-educated workforce, and it’s easy to see why Greece stands out as a place for foreign expansion.
After some turbulent times economically, Greece has responded well to the additional challenges of the pandemic, with GDP growing by around 18% in just three years between 2021 and 2024. Although it is largely a service-led economy (with tourism a major factor, thanks to its excellent weather and world-famous historical sites), it also has substantial agricultural and industrial sectors, including being a major global player in shipbuilding.
It’s important to be aware that Greek payroll and employment law is complicated, and there have been some major changes in legislation recently around working hours and statutory pay rises. The first step to understanding your requirements and staying on the right side of compliance is to read this guide on the basics of running payroll in Greece.
Getting Started
Much of the company registration process can be done online through the Greek government’s business portal.
The first steps of registering a business in Greece is to check with the Chamber of Commerce that your chosen name is available, and then to draw up your Memorandum of Association to be notarized. These articles should then be delivered to the National Printing Office so that they can be published in the Greek National Gazette. With the help of your notary, you’ll be able to register with the Commercial Registry and obtain a VAT number.
Employment Considerations
Greece’s approach to working hours has undergone significant reform. New legislation took effect in July 2024 that increased the maximum working week from 40 hours to 48, for businesses that operate 24 hours a day with rolling shifts. Employees can choose whether or not to work the extra eight hours, and will receive overtime pay of 140% of salary for them if they do.
Then, in October 2025, the Greek parliament passed a new labor bill that allows working days to be extended up to 13 hours in limited cases, and with employee consent. These long days can only be worked a maximum of 37 times each year, and the existing overtime limit of 150 hours per year still applies.
No notice period is required in the first year of employment in Greece. After a year, entitlement is one month, rising to two months after three years, three months after six years, and four months after ten years. Probation periods can last for a maximum of six months, during which there is no notice period or severance applicable.
Employers are not required to provide written contracts to employees upon hiring, though they are highly encouraged to do so. Using fixed-term contracts for permanent work is prohibited in Greece.
Compensation & Severance
The Greek authorities have made some interesting changes to its wage legislation in recent years. As of 2025, the national minimum wage is €880 per month (approx. £775, $1,025) for white-collar workers, and €39.30 per day (approx. £35, $45) for blue-collar workers.
Additionally, at the start of 2024, Greece reintroduced statutory pay rises linked to length of service. White-collar workers automatically get a 10% increase after every three years of service, and blue-collar workers get an extra 5%. These increases are capped at a maximum of 30%.
Greek employees are also entitled to 13th-month and 14th-month salary bonuses. They should receive one month’s salary for Christmas (no later than December 21), half a month’s salary for Easter, and half a month’s salary as a ‘vacation bonus’ in the summer.
Severance pay varies significantly depending on an employee’s length of service. Starting at two months’ salary after one year of service, it rises to three months after four years, and four months after six years. Employees who resign are not entitled to any severance pay.
Tax and social security in Greece
As is the case in many countries, personal income is taxed on a progressive scale. Employers are required to deduct taxes from the employee’s paycheck and distribute them to the appropriate tax offices. The first €10,000 of an employee’s annual earnings (approx. £8,800; $11,600) is taxed at 9%, with further bands of 22%, 28% and 36% introduced for each following €10,000 band. All earnings above €40,000 (approx. £35,300; $46,600) per year are taxed at the highest rate of 44%.
Social security contributions in Greece are as follows:
- Pension fund: 13.33% employer, 6.67% employee
- Health care: 4.3% employer, 2.15% employee
- Health in Benefit: 0.25% employer, 0.4% employee
- Supplementary insurance: 3% employer, 3% employee
- Unemployment: 1.41% employer, 1.65% employee
- Summer campsite programs: €20 per year employer
Most of these contributions are applied to monthly salary payments up to a maximum of €7,572.62 per month (approx. £6,600, $8,800), meaning any earnings beyond this are exempt.
The corporate tax rate in Greece is 22%. VAT is relatively high at 24%, although there are a number of reduced rates in place.
Holiday and Leave Considerations
Greek paid leave allowance increases according to length of service. For employees that work five-day weeks, the entitlement starts at 20 days in the first year, receiving additional days after certain years of service have been reached. The highest entitlements are 25 days for an employee with at least ten years of service, and 26 days for those with at least 25 years of service. These allowances are increased pro-rata for employees who work six days a week rather than five.
There are 12 days of public holiday in Greece each year, many of which are aligned with the Greek Orthodox faith. Employees should receive paid time off for these days; if they fall on Sundays, then the following Monday should be given as the paid time off instead.
Maternity leave entitlement is 17 weeks – eight before the birth and nine after it. Mothers are entitled to maternity pay at their normal rate from the social security system as long as they have worked at least 200 days in the preceding two years.
Paternity leave is 14 working days, covered by employers at the normal rate. Fathers can choose to take two of these days before the birth if they so wish; in any case, the full entitlement has to be used before the child is 30 days old.
Additionally, any parent with at least one year of service with their current employer is entitled to parental leave. This runs for a maximum of four months, and can be taken at any time until the child turns eight. The first two months of this are paid by social security at the statutory minimum wage. The last two are unpaid, although some employers choose to pay as an employee benefit, and it’s sometimes mandated by collective bargaining.
Paid sick leave entitlement is variable, depending on length of service. Employees are entitled to 15 days in their first year, rising to one month a year after this. The limit then rises to three months per year after four years, four months per year after ten years, and six months per year after 15 years. Production of a medical certificate is required within the first 48 hours of absence.
There are also other leave entitlements for marriage (five days, paid); bereavement of an immediate family member (two days; paid); and care of a sick dependent family member (six days per year, unpaid).
In Summary: Payroll in Greece
As this guide outlines, there has been a lot of change in Greek payroll and employment law in recent years, and further changes in the months and years ahead cannot be ruled out. This makes it even more important to have access to Greek payroll know-how, so that you can adjust your payroll processes and stay on the right side of compliance. The best way to access that expertise—and to do the same in all of the territories in which you operate—is to work with a global payroll partner with a network of in-country payroll experts.
This article is for informational purposes only and not intended to convey or constitute legal or any other advice. It is not a substitute for advice from a qualified professional.