Hire employees in Greece using an Employer of Record

Greece requires 14-month salaries, mandatory profit-sharing, and complex termination procedures that can cost €15,000+ if handled incorrectly. Most companies don't discover these requirements until they're already non-compliant and facing penalties.

You've got three options for hiring in Greece, and the math matters more than you think.

Option 1: Set up your own entity

• Cost: €15,000-40,000 upfront, €8,000-15,000 annual maintenance
• Timeline: 4-6 months minimum
• Complexity: Chamber of Commerce registration, tax authority setup, social security enrollment, mandatory audit requirements
• Makes sense when: Hiring 15+ people long-term, permanent market establishment

Option 2: Hire contractors

• Cost: None upfront, but significant misclassification risks
• Timeline: Immediate
• Risks: Penalties up to €25,000 per misclassified worker, back social security contributions, automatic employee conversion
• Makes sense when: Short-term projects under 6 months, highly specialized consulting
• Note: Hire with Columbus also handles compliant contractor agreements and payments

Option 3: Use an employer of record (Recommended for most)

• Cost: $179/month per employee
• Timeline: 2-3 days to hire
• Complexity: Zero - we handle all Greek employment law requirements
• Makes sense when: 1-20 employees, testing the Greek market, multi-country expansion

The math is pretty straightforward. If you're hiring 1-5 people, entity setup costs more than 4+ years of EOR fees ($179/month = $2,148/year per employee vs €15,000+ upfront plus ongoing costs). An EOR handles the 14-month salary calculations, mandatory Christmas and Easter bonuses, complex social security contributions, and termination procedures that trip up most companies.

Ready to hire in Greece without the compliance headaches? Get started with Hire with Columbus and have your team member onboarded within days.

What employment types can you use?

You've got three ways to bring someone onboard in Greece. Here's how the costs and risks compare.

How can you hire in Greece?

Most companies jump straight to contract types, but the real decision is how you'll legally employ someone in the first place. Let's break down your options with actual numbers.

Set up your own entity

This is the traditional route, but it's expensive and slow. You'll need €15,000-25,000 just to get started, covering incorporation fees, legal setup, and initial compliance costs.

The timeline is brutal - expect 4-6 months before you can legally hire your first employee. You'll need Greek tax registration, payroll systems, HR infrastructure, and ongoing legal compliance.

Ongoing costs hit €2,000-4,000 monthly for accounting, legal fees, and administrative overhead - before you even pay a single employee. This makes sense if you're planning 20+ employees long-term, but it's overkill for smaller teams.

Hire contractors/freelancers

Speed is the only advantage here - you can start immediately. But Greece's labor authorities are aggressive about contractor misclassification.

If someone works like an employee (set hours, using your equipment, integrated into your team), they legally are an employee. Misclassification fines start at €10,000 per worker, plus back taxes and social security contributions.

Contractors work for short-term projects under 6 months or highly specialized skills. Think graphic design for a marketing campaign, not your head of engineering.

Use an employer of record (Recommended)

This is where Hire with Columbus comes in. We become the legal employer in Greece while you manage day-to-day work and performance.

You get compliant employment in 2-3 days instead of months. We handle employment contracts, payroll processing, tax compliance, benefits administration, and all legal requirements.

Cost is $179/month per employee - transparent and predictable. For a 5-person team, that's $895 monthly versus €25,000+ in entity setup costs. The ROI is obvious.

Employment contract types in Greece

Once you've decided how to hire (hopefully through an EOR), you need the right contract type. Greece recognizes several employment arrangements, each with specific rules.

Permanent contracts (indefinite duration)

This is your go-to for core team members. No end date, full job security protections, and all statutory benefits.

Greek employees expect permanent contracts for full-time roles. It signals commitment and helps with retention. Termination requires proper notice periods and potential severance - we'll cover that in compliance.

Hire with Columbus handles all permanent contract paperwork, ensuring Greek labor law compliance from day one.

Fixed-term contracts

Use these carefully. Fixed-term contracts can't exceed 24 months total, including renewals. After that, they automatically convert to permanent contracts.

You need legitimate business reasons - seasonal work, temporary project coverage, or replacing someone on leave. "We want flexibility" isn't a valid reason under Greek law.

Maximum of 3 consecutive renewals before mandatory conversion to permanent status. We help structure these properly to avoid accidental permanent conversions.

Part-time contracts

Part-time employees get the same rights as full-timers, just prorated. Minimum 15 hours per week, maximum 30 hours to stay part-time.

They receive proportional vacation days, sick leave, and social security benefits. Overtime kicks in after their contracted hours, not after 40 hours weekly.

Popular for customer service roles or specialized consultants who split time between companies.

Probationary periods

All new hires can include probationary periods - up to 12 months for permanent contracts, shorter for fixed-term roles.

During probation, notice periods are reduced and termination is easier. But you still need valid reasons and proper documentation.

We structure probationary clauses to give you maximum flexibility while staying compliant with Greek employment law.

The bottom line? Most international companies hiring 1-20 employees in Greece benefit from permanent contracts through an EOR. You get the employment relationship you want without the entity setup headaches.

How does payroll and taxation work?

Your €60,000 employee actually costs €83,400 per year in Greece. Employer social contributions alone add 24.56% to base salary, and that's before you factor in the mandatory 14th salary payment and holiday bonuses.

Greece's payroll system runs on strict monthly cycles with zero tolerance for late payments. Miss a deadline and penalties start at €150 per employee, escalating quickly for repeat offenses.

Income tax brackets

Greek employees pay progressive income tax on their gross salary. The rates increased slightly in 2025 as part of ongoing fiscal adjustments.

There's also a solidarity contribution of 2.2% on income over €12,000 annually. Your €60k employee pays roughly €17,040 in income tax and €1,056 in solidarity contribution.

Social security contributions breakdown

This is where it gets expensive. Both employer and employee contribute to Greece's social security system, but employers carry the heavier burden.

Your employee earning €60k pays €7,890 in social contributions. You pay €14,736 as the employer.

Payment schedule and bonuses

Greek employees expect their salary on the last working day of each month. But you're actually paying more than 12 months of salary.

Greece requires a 14th salary payment, typically split between Christmas (half month) and Easter (half month). Some sectors also require summer vacation bonuses.

Annual payment breakdown for €60k salary:

• 12 monthly payments: €60,000
• Christmas bonus: €2,500
• Easter bonus: €2,500
• Vacation allowance: €2,500
• Total gross payments: €67,500

Add employer contributions (€16,575) and your total cost hits €84,075 annually.

Total employment cost example

Let's break down the real cost of that €60k employee:

That's a 40% markup on the base salary. Plan for this from day one.

Payroll cycle and deadlines

Greece runs a tight payroll schedule. You need to know these dates:

Monthly cycle:

• Salary payment: Last working day of the month
• Tax withholding report: 15th of following month
• Social security payments: 15th of following month
• VAT filing (if applicable): 25th of following month

Annual requirements:

• Annual tax return: By March 31st
• Social security reconciliation: By February 28th
• Bonus payments: Christmas (December), Easter (varies), summer (June/July)

Miss any deadline and penalties compound quickly. Late social security payments incur 1.5% monthly interest plus fixed penalties.

Common payroll mistakes

Most companies stumble on these Greece-specific requirements:

Bonus miscalculations: The 14th month isn't just base salary. It includes overtime and regular allowances. Many payroll systems miss this.

Vacation allowance timing: This is due before summer holidays, not when vacation is taken. Employees can legally refuse to take vacation without it.

Social security ceiling errors: Contributions cap at €6,500 monthly income, but the calculation includes all bonuses and allowances, not just base salary.

Public holiday premiums: Working on public holidays requires 75% overtime premium, not standard overtime rates.

Setting up payroll in Greece yourself:

• Local accounting firm: €800-1,200/month
• Payroll software: €150-300/month
• Compliance risk: Fines up to €25,000 for errors
• HR expertise needed: €45k+ salary

With Hire with Columbus: $179/month per employee (USD), fully compliant, zero risk.

We handle all the bonus calculations, deadline management, and regulatory changes so you don't have to become a Greek payroll expert overnight. Your employees get paid correctly and on time, every time.

What benefits and leave are required?

You'll pay salary 14 times a year in Greece, not 12 – that's the 13th and 14th month bonuses hitting in June and December. Beyond that surprise, Greece has some of the most generous leave policies in Europe, and missing mandatory benefits starts penalties at €2,000 per violation.

Here's what you're legally required to provide and what it'll cost you.

Annual vacation leave

Greek employees get 20 working days of vacation minimum after one year of employment. That jumps to 22 days after two years, and 25 days after ten years of service.

Vacation accrues monthly – roughly 1.67 days per month in the first year. Employees can't carry over unused vacation to the next year unless you agree in writing, but here's the kicker: if they don't use it, you must pay them for those unused days at termination.

The payout calculation uses their average daily wage over the last three months. So if someone earned €2,400 monthly and has 5 unused vacation days, you owe them €400 (€80 daily wage × 5 days).

Sick leave entitlements

Employees can take up to 3 days of sick leave without a doctor's note. After that, they need medical certification from a public hospital or Social Insurance Institute (IKA) doctor – private doctors won't cut it.

You pay full salary for the first 3 days. After that, social insurance (EFKA) covers 50% of their daily wage from day 4 onwards, up to 182 days per year for the same illness. You're not required to top up that 50%, but many companies do to stay competitive.

For chronic conditions or serious illnesses, employees can get up to 365 days of sick leave with medical certification. The social insurance continues paying 50% during this extended period.

Parental leave breakdown

Maternity leave: 17 weeks total – 8 weeks before birth and 9 weeks after. Social insurance pays 100% of salary during this time, not you.

Paternity leave: 14 days within the first two months after birth. You pay full salary for the first 3 days, and social insurance covers the remaining 11 days at 100% of salary.

Extended parental leave: Either parent can take up to 6 months of unpaid leave until the child turns 6 years old. They can also work part-time (50% hours) for up to 12 months with proportional pay.

Greece also offers 2 hours of daily nursing leave for mothers until the child turns 12 months old. You pay full salary during these hours.

Public holidays 2025

Greece has 11 public holidays in 2025. If employees work on these days, you pay double their normal wage.

Note that Greek Orthodox Easter dates differ from Western Easter, so don't assume April dates stay the same each year.

Mandatory benefit contributions

Three benefits are non-negotiable: social insurance, unemployment insurance, and occupational accident insurance. Here's who pays what:

Social insurance (EFKA):

• Employee pays: 16% of gross salary
• Employer pays: 24.56% of gross salary
• Covers: Healthcare, pensions, disability, maternity benefits

Unemployment insurance:

• Employee pays: 0.55% of gross salary
• Employer pays: 2.55% of gross salary

Occupational accident insurance:

• Employee pays: 0%
• Employer pays: 0.5-2% depending on industry risk level

Total employer contribution: roughly 27-29% on top of gross salary. For a €3,000 monthly salary, expect to pay an additional €810-870 in mandatory contributions.

13th and 14th month bonuses

This isn't optional – it's required by law. The 13th month bonus (half paid in June, half in December) equals one month's salary. The 14th month bonus, paid before summer vacation, equals half a month's salary.

These bonuses are subject to the same tax and social insurance contributions as regular salary. For a €3,000 monthly salary, you'll pay €4,500 extra annually just in these bonuses.

Optional competitive benefits

Beyond legal requirements, competitive employers in Greece typically offer:

• Private health insurance (€100-300 per employee monthly)
• Meal vouchers (up to €11 per working day, tax-free)
• Transportation allowances
• Mobile phone and laptop provisions
• Gym memberships or wellness programs
• Additional life insurance coverage

Many companies also provide flexible working arrangements, though this isn't legally mandated except for parents with young children.

Common benefit mistakes and penalties

Missing social insurance registration: €2,000-10,000 fine per employee, plus you're liable for all unpaid contributions with interest.

Incorrect vacation calculations: Employees can sue for up to 5 years of unpaid vacation. Courts typically award the full amount plus 20% interest annually.

Late 13th/14th month payments: Labor inspectors fine €1,000-5,000 per violation, and employees can claim the full amount plus damages.

Inadequate sick leave documentation: If you don't accept valid medical certificates, employees can claim wrongful termination. Settlements typically run €10,000-30,000.

The Labor Inspectorate (SEPE) conducts random audits and responds to employee complaints. They can access your payroll records going back 5 years and impose immediate fines for violations.

Administering these benefits correctly requires local HR expertise (€45,000+ annual salary), benefits administration software (€200-500/month), and ongoing legal review (€5,000+ annually). Factor in the risk of calculation errors and compliance mistakes, and you're looking at significant hidden costs.

Hire with Columbus handles all benefit administration, statutory calculations, and compliance monitoring for $179/month per employee. We manage the 13th and 14th month bonus calculations, track vacation accruals, coordinate with Greek social insurance, and ensure you never miss a mandatory payment or filing deadline.

What are the compliance requirements?

Written contracts are mandatory in Greece within 30 days of employment start. Miss this deadline and you're looking at fines starting from €300 per violation, plus the employee can claim whatever contract terms they prefer.

Greece's employment law is built around worker protection. That means detailed processes for everything from probation to termination. Get the paperwork wrong and you'll face penalties, back payments, and potentially having to reinstate employees you thought you'd legally dismissed.

Employment contract requirements

Every employment contract in Greece must be written in Greek and include specific mandatory clauses. You can't just translate your standard US contract and call it done.

Required contract elements:

• Job title and detailed description of duties
• Workplace location (or "various locations" if applicable)
• Start date and contract duration (if fixed-term)
• Salary amount and payment frequency
• Working hours and overtime arrangements
• Annual leave entitlement
• Notice periods for both parties
• Applicable collective bargaining agreement (if any)

Missing any mandatory clause makes the entire contract voidable. The employee can then claim more favorable terms under general labor law. That usually means higher severance and longer notice periods.

Contracts don't need government registration, but they must be provided to the employee within 30 days of starting work. Late delivery triggers automatic fines of €300-€1,500 depending on company size.

Probation periods

Standard probation in Greece is 12 months for most positions, though collective agreements often reduce this to 6 months. You can't extend probation periods beyond what's specified in the original contract.

During probation, either party can terminate with just 20 days' notice (for monthly-paid employees) or 3 days' notice (for daily-paid workers). No severance is required during probation, but you still need to follow proper termination procedures.

Common probation mistakes:

• Trying to extend probation mid-contract (illegal)
• Not specifying probation terms clearly in the contract
• Assuming probation means you can fire without any notice

Working time regulations

Standard working week is 40 hours maximum, typically spread over 5 days. Daily limits are 8 hours, though this can extend to 10 hours if weekly limits aren't exceeded.

Overtime rules:

• First 120 hours per year: 20% premium
• Hours 121-200: 40% premium
• Beyond 200 hours: 60% premium
• Weekend work: 75% premium
• Holiday work: 100% premium

You must maintain detailed working time records for each employee. Missing or incomplete records result in €1,000-€5,000 fines per employee during labor inspections.

Employees need 11 consecutive hours of rest between working days, plus 35 consecutive hours of weekly rest (usually including Sunday).

Notice periods

Notice periods in Greece depend on tenure and whether it's employee or employer-initiated termination:

You can pay in lieu of notice, but you can't reduce these periods. Trying to circumvent notice requirements through resignation agreements often gets challenged successfully in Greek courts.

Termination process

Terminating employees in Greece requires "just cause." You can't fire someone just because business is slow or you don't like their personality. Valid reasons include serious misconduct, repeated performance issues (with documented warnings), or genuine redundancy.

Required termination steps:

1. Document the cause with evidence
2. Provide written warnings for performance issues (except serious misconduct)
3. Give proper notice as outlined above
4. Pay all outstanding wages, unused vacation, and severance
5. Notify social security authorities within 15 days

For redundancies affecting 30+ employees, you need government approval and must follow collective consultation procedures. This process takes 2-4 months minimum.

Wrongful termination penalties are severe: reinstatement plus 3-15 months additional compensation, depending on tenure and circumstances.

Severance pay requirements

Severance is mandatory for all terminations except resignation, serious misconduct, or termination during probation:

This is in addition to notice period payments. So terminating a 5-year employee costs 6 months' notice plus 5 months' severance. That's 11 months total compensation.

Severance must be paid immediately upon termination. Delays trigger 6% annual interest charges plus potential court costs if the employee files a claim.

Data protection obligations

Greece follows GDPR rules strictly, with additional local requirements for employee data. You need explicit consent for processing personal information beyond basic employment records.

Required for all employees:

• Written data processing notice in Greek
• Secure storage of personnel files
• Limited access to sensitive information
• Right to data portability when employment ends

GDPR violation fines reach €20 million or 4% of global revenue, whichever is higher. Greek authorities issued €2.3 million in employment-related data fines in 2025.

Employee monitoring (emails, internet usage, location tracking) requires works council consultation and individual consent. Secret monitoring is illegal and voids any evidence gathered.

Common compliance mistakes

Invalid employment contracts happen when companies use poorly translated templates or miss mandatory clauses. Penalty: €300-€1,500 fine plus the contract becomes voidable at the employee's discretion.

Wrong termination procedures are the biggest compliance risk. Skipping proper notice, failing to document cause, or not following collective agreement procedures can cost you big. Result: €5,000-€50,000 in compensation plus potential reinstatement orders.

Missing working time records during labor inspections. Greek authorities conducted 15,000+ workplace inspections in 2025. Fine: €1,000-€5,000 per employee with incomplete records.

Improper overtime calculations using wrong premium rates or not tracking hours accurately. Back payment obligations can stretch 5 years, plus 6% annual interest.

Penalties for violations

Greece's labor inspection authority has ramped up enforcement in 2025. Common violation penalties:

Employment contract violations:

• Missing written contract: €300-€1,500 per employee
• Late contract delivery: €300-€1,500 per employee
• Missing mandatory clauses: Contract voidable + potential back payments

Working time violations:

• Incomplete time records: €1,000-€5,000 per employee
• Excessive overtime: €2,000-€10,000 plus back payments
• No rest period compliance: €1,500-€7,500

Termination violations:

• Wrongful dismissal: 3-15 months' salary compensation + legal costs
• Improper notice: Full notice period payment + 6% interest
• Missing severance: Full amount + 6% annual interest + court costs

The average wrongful termination case in Greece costs €25,000-€75,000 when you factor in compensation, legal fees, and court costs. Cases typically take 18-24 months to resolve.

Hire with Columbus handles all Greek employment compliance automatically. Every contract includes mandatory clauses in Greek, termination procedures follow local law exactly, and working time tracking meets inspection requirements. When you need to terminate someone, we manage the entire process from documentation to final payments. This helps you avoid the costly mistakes that trip up most international companies in Greece.

What has changed recently?

Greece's employment rules changed quite a bit in 2025, with new regulations that directly impact how you hire and manage employees. The biggest change came in March 2025 when Greece introduced mandatory digital employment contracts through the new "e-Contract" system. All employment agreements must now be registered digitally within 48 hours of signing.

The minimum wage jumped to €830 per month in January 2025, up from €760 in 2024. That's a 9.2% increase that caught many international employers off guard. If you're budgeting based on older data, you'll need to adjust your compensation planning.

New remote work regulations

Greece finally clarified its remote work rules in February 2025 with the "Hybrid Work Framework" law. Employees now have a legal right to request remote work arrangements, and employers must provide written justification if they refuse. The law also requires companies to reimburse remote workers €50 per month for home office expenses.

Cross-border remote work got more complicated too. Greek employees working remotely for foreign companies now trigger specific tax obligations if they work more than 90 days per year from Greece, regardless of where their employer is based.

Updated social security contributions

Social security rates increased across the board in 2025. Employee contributions now range from 13.87% to 16.87% depending on their employment category, while employer contributions range from 22.29% to 28.06%. The previous year's rates were roughly 1-2 percentage points lower.

Beefed up labor inspections

Greece's labor inspection authority (SEPE) received expanded powers in 2025, including the ability to impose immediate fines for undeclared work. Penalties now start at €10,500 per undeclared employee, and inspectors can freeze company bank accounts pending investigation.

The good news? Companies using an EOR like Hire with Columbus don't need to worry about these compliance changes. We handle all the digital contract registrations, social security filings, and regulatory updates automatically, so your Greek employees stay compliant while you focus on running your business.

New data protection requirements

The Greek Data Protection Authority introduced sector-specific guidelines for employee monitoring in 2025. Companies must now obtain explicit consent before using any productivity tracking software, and employees have the right to disconnect outside working hours. This means you can't require responses to emails or messages after 6 PM local time.

These changes make hiring through an established EOR even more valuable, since managing Greece's evolving regulatory environment requires constant attention to detail that most international companies simply don't have bandwidth for.