Minimum Wage

As of 2024, the gross minimum wage in Greece is set at €830 per month, which translates to approximately €37.07 per hour for skilled workers. This adjustment is part of the Greek government’s initiative to gradually increase the minimum wage to €950 per month by 2027. Employers must ensure compliance with this wage standard to avoid penalties.

Minimum Wage Type	Amount (€)
Monthly Minimum Wage	830
Hourly Minimum Wage	37.07

Income Tax

Greece employs a progressive income tax system, where tax rates increase with higher income levels. The individual income tax rates range from 9% to 44%, depending on the income bracket. Below is a breakdown of the tax brackets:

Income Range (€)	Tax Rate
Up to 10,000	9%
10,001 – 20,000	22%
20,001 – 30,000	28%
30,001 – 40,000	36%
Above 40,000	44%

In addition to these rates, income exceeding €12,000 is subject to a special solidarity contribution that ranges from 2.2% to 10%, depending on the total annual income.

Payroll Cost

When calculating payroll costs in Greece, employers must consider both direct salary payments and additional contributions. The main components include:

• Gross Salary: The agreed-upon salary before deductions.
• Employer Contributions: Employers contribute approximately 24.81% of the gross salary towards social security and other benefits.
• Employee Contributions: Employees contribute around 15.75% of their gross earnings towards social security.

For example, if an employee’s gross salary is €2,000:

• Gross Salary: €2,000
• Employer Contribution (24.81%): €496.20
• Employee Contribution (15.75%): €315
• Total Payroll Cost: €2,496.20

Cost Component	Amount (€)
Gross Salary	2,000
Employer Contribution	496.20
Employee Contribution	-315
Total Payroll Cost	2,496.20

Overtime Pay

In Greece, overtime pay is applicable for hours worked beyond the standard workweek of 40 hours. The overtime pay rates are as follows:

• For the first two hours of overtime on a regular working day: 120% of the regular hourly rate.
• For any additional hours worked beyond this: 140% of the regular hourly rate.

For example, if an employee’s regular hourly rate is €10:

• Overtime Rate (first two hours): €12
• Overtime Rate (additional hours): €14

Overtime Type	Rate (€)
First two hours	12
Additional hours	14

Understanding these components—minimum wage, income tax rates, payroll costs, and overtime pay—is essential for employers operating in Greece to ensure compliance with local labor laws and effectively manage workforce expenses.

Regular & Maximum Working Hours

In Greece, the standard working week is defined as 40 hours, typically spread across five working days. This translates to a maximum of 8 hours per day. However, if both the employer and employee agree, the working hours can be extended to 48 hours per week for specific roles or projects.

Working Hours Type	Standard Hours	Maximum Hours
Regular Workweek	40 hours/week	48 hours/week (with agreement)
Daily Maximum	8 hours/day	10 hours/day (with agreement)

Overtime Regulations

Overtime is defined as any work performed beyond the standard working hours. Greek labor law permits up to 120 hours of overtime per year. Overtime compensation varies based on the time of day and is classified into two categories:

• Iperergasia: This type of overtime applies to the first two hours worked beyond the standard hours.
• Iperoria: This applies to any overtime worked after the initial hours of Iperergasia.

Overtime pay rates are as follows:

• For Iperergasia: Paid at 120% of the regular hourly wage.
• For Iperoria: Paid at 140% for the first two additional hours and 150% for any further hours.

Overtime Type	Rate (%)
Iperergasia	120%
Iperoria (first two hours)	140%
Iperoria (additional hours)	150%

Leave

Employees in Greece are entitled to various types of leave, which are essential for maintaining work-life balance. The main types of leave include:

• Annual Leave: Employees are entitled to paid vacation days, typically ranging from 20 to 25 days per year, depending on their length of service and industry.
• Sick Leave: Employees must provide a medical certificate within 48 hours of illness onset. Sick leave entitlements increase with years of service, allowing up to six months of paid sick leave for long-serving employees.
• Parental Leave: Available for parents who have completed one year of service, allowing up to four months of leave until the child reaches eight years old.

Leave Type	Entitlement
Annual Leave	20 to 25 days/year
Sick Leave	Varies by service length
Parental Leave	Up to 4 months

Holidays

Greece observes several public holidays throughout the year. Employees are entitled to time off on these holidays, which include:

1. New Year’s Day (January 1)
2. Epiphany Day (January 6)
3. Annunciation of the Virgin Mary (March 25)
4. Labor Day (May 1)
5. Orthodox Easter Sunday (date varies)
6. Orthodox Easter Monday (date varies)
7. Dormition of the Holy Virgin (August 15)
8. Ochi Day (October 28)
9. Christmas Day (December 25)
10. Synaxis of the Mother of God (December 26)

Holiday Name	Date Observed
New Year’s Day	January 1
Epiphany Day	January 6
Annunciation	March 25
Labor Day	May 1
Orthodox Easter Sunday	Date varies
Orthodox Easter Monday	Date varies
Dormition	August 15
Ochi Day	October 28
Christmas Day	December 25
Synaxis	December 26

Understanding these aspects—working hours, overtime regulations, leave entitlements, and public holidays—is essential for employers operating in Greece to ensure compliance with local labor laws and foster a supportive work environment for their employees.

Termination Requirements

Termination of employment in Greece must adhere to specific legal requirements and procedures. The grounds for termination can vary based on the type of contract (fixed-term or indefinite) and the circumstances surrounding the termination. Employers are required to notify the relevant authorities within four working days of any termination. The following are acceptable grounds for termination:

• Voluntary Resignation: Initiated by the employee.
• Mutual Agreement: Both parties agree to terminate the employment.
• Disciplinary Grounds: Includes misconduct or absence without justification for more than seven days.
• Objective Grounds: Such as redundancy or lack of capability.
• Expiration of Fixed-Term Contracts: Automatically ends when the contract term is completed.

Termination Grounds	Description
Voluntary Resignation	Employee chooses to leave the company.
Mutual Agreement	Both employer and employee agree to terminate.
Disciplinary Grounds	Termination due to misconduct or prolonged absence.
Objective Grounds	Termination due to business needs or capability issues.
Expiration of Contract	Fixed-term contracts end automatically upon expiration.

Notice Period

The notice period required for termination depends on the length of service and the type of employment contract. The following outlines the notice periods for different scenarios:

Fixed-Term Contracts

• No notice is required upon expiration of the contract.
• If terminated by the employer:
  • No notice required for less than one year of employment.
  • 30 days notice for over one year.

Indefinite-Term Contracts

• If terminated unilaterally by the employer, no notice is required.
• If voluntarily terminated by the employee, a 15-day notice is required.
• By mutual agreement, terms can be negotiated.

Contract Type	Length of Service	Notice Period
Fixed-Term	Expiration	No notice
Fixed-Term	Less than 1 year	No notice
Fixed-Term	Over 1 year	30 days
Indefinite	Unilaterally by employer	No notice
Indefinite	Voluntarily by employee	15 days

Severance Pay

In Greece, severance pay is mandatory for employees who are terminated after completing one year of service. The amount of severance pay varies depending on whether the termination was with or without cause. The minimum severance compensation is as follows:

• For terminations without cause:
  • Minimum of 2 months’ salary, increasing up to a maximum of 12 months’ salary after 16 years of service.
• For terminations with cause:
  • Minimum of 1 month’s salary, increasing up to a maximum of 6 months’ salary after 16 years of service.

Severance pay calculations are based on the employee’s gross monthly salary, typically divided by 12 and multiplied by 14 (to include mandatory bonuses).

Termination Type	Minimum Severance Pay	Maximum Severance Pay
Without Cause	2 months	Up to 12 months (after 16 years)
With Cause	1 month	Up to 6 months (after 16 years)

Probation Periods

In Greece, probation periods are commonly included in employment contracts and typically last for a duration of up to six months. During this time, either party can terminate the employment without cause and without any notice requirement.

Key Points about Probation Periods:

• The terms should be clearly outlined in the employment contract.
• Regular evaluations are encouraged during this period to assess performance.
• After probation, standard termination procedures apply.

Probation Duration	Notice Requirement
Up to 6 months	None

Understanding these components—termination requirements, notice periods, severance pay, and probation periods—is essential for employers operating in Greece to ensure compliance with local labor laws and maintain fair employment practices.

Misclassification

In Greece, the distinction between independent contractors and full-time employees is crucial for compliance with labor laws. Misclassification occurs when an employer incorrectly labels an employee as a contractor. This can lead to significant penalties, including fines and the obligation to provide employee benefits retroactively. Understanding the differences between these two classifications is essential for avoiding legal issues.Independent Contractors vs. Full-Time Employees

• Independent Contractors: They operate under a contract for the provision of liberal services, enjoying greater autonomy over their work schedule and methods. They are not entitled to employee benefits such as paid leave or social security contributions from the employer.
• Full-Time Employees: They work under a dependent services contract, where the employer has control over work hours, location, and methods. Employees are entitled to various benefits, including health insurance, paid leave, and severance pay.

Aspect	Independent Contractors	Full-Time Employees
Contract Type	Contract for liberal services	Contract of dependent services
Control	High autonomy; self-managed	Employer controls work conditions
Benefits	No entitlement to employee benefits	Entitled to paid leave, social security
Tax Responsibilities	Responsible for own taxes	Employer withholds taxes

Legal Implications of Misclassification

Misclassifying an employee as a contractor can result in severe consequences for employers. If the Greek authorities determine that a contractor should have been classified as an employee, the employer may face:

• Fines: Significant financial penalties can be imposed.
• Back Taxes: Employers may be required to pay back taxes owed on behalf of the misclassified worker.
• Employee Benefits: Employers may need to provide retroactive benefits such as health insurance, paid leave, and severance pay.

Hiring Independent Contractors

When hiring independent contractors in Greece, it is essential to follow specific legal requirements:

1. Service Agreement: A written contract must be established that outlines the scope of work, payment terms, deadlines, and termination conditions.
2. Payment Terms: Contractors set their own rates and are not subject to minimum wage laws. Payment arrangements should be clearly defined in the service agreement.
3. Tax Compliance: Unlike employees, employers are not required to withhold income tax or social security contributions from contractors’ payments.

Contractor Requirement	Details
Service Agreement	Must detail scope of work and payment terms
Payment Terms	Set by contractors; not subject to minimum wage
Tax Compliance	Employers do not withhold taxes

Termination of Independent Contractors

Independent contractors are not covered by standard termination laws included in Greece’s labor code. Therefore, it is crucial that the service agreement outlines any termination policies and requirements. Key components may include:

• Reasonable Cause for Dismissal: Conditions under which a contractor can be terminated.
• Notice Periods: While not legally required, it is good practice to define any notice periods in the agreement.
• Payment Obligations: Specify any final payments due upon termination.

Termination Component	Details
Reasonable Cause	Defined within the service agreement
Notice Period	Recommended but not legally required
Final Payments	Outline any payments due upon termination