Employer of Record (EOR) Greece

An Employer of Record (EOR) in Greece acts as the legal employer for your workforce, playing a vital role in ensuring compliance with local labor laws and regulations. As a reputable Global Professional Employer Organization (Global PEO), our EOR services go beyond basic legal representation. We oversee key employment aspects such as payroll management, tax handling, benefits administration, and the drafting of essential employment contracts.

Choosing our Global PEO services with an Employer of Record in Greece offers your business a streamlined expansion solution that eliminates the complexities of establishing a local entity. Our EOR guarantees legal presence, compliance with local laws, and protection of intellectual property, allowing you to focus on your core business functions. Moreover, our services support efficient global mobility and work visa processes, fostering the development of a diverse and effective international workforce.

Things you need to know before hiring in Greece

Employment Contracts in Greece

Employment contracts in Greece are governed by specific labor laws that ensure the rights and responsibilities of both employers and employees are upheld. The legal framework includes multiple provisions designed to protect employment security, employee benefits, and fair working conditions.

Dependent Employment Contracts

A dependent employment contract is characterized by a relationship of personal dependence. Under Greek law, employees working under such contracts must adhere to the employer’s instructions and control. This contract type is required for applying many protective labor law provisions, like mandatory salary and working conditions. Greek labor law mandates that the existence of such a contract necessitates employer compliance with set legal standards, including specified wages, work hours, location, and the provision of necessary work equipment.

Employment Contract Types

• Open-Ended Contracts: These have no fixed duration, continuing indefinitely until terminated by either party. Termination rules and severance obligations are regulated by Greek labor law.
• Fixed-Term Contracts: Fixed-term contracts automatically expire when their agreed period ends. However, repeated renewals without an objective reason may lead to reclassification as open-ended contracts under Greek and EU-derived employment rules.
• Project and Independent Services Contracts: Contracts for specific projects or independent services lack the dependence characteristic of an employment contract, with contractors working independently and without direct employer supervision. They are not covered by standard labor protections for dependent employees.

Probationary Period

For open-ended contracts, a probationary period of up to six months is permitted under the current Greek framework. During this period, the employment relationship is treated as a trial phase, subject to the applicable rules for notice and fixed-term proportionality where relevant.

Employer’s Managerial Rights and Limitations

The employer’s right to manage encompasses the authority to organize and operate their business and to determine employment terms, provided these do not contravene labor laws or contractual terms. The law (Article 281, Greek Civil Code) restricts this right from being exercised abusively, requiring good faith and consideration of the employee’s personal circumstances, such as family needs or mobility limitations.

Misclassification and Circumvention

In economic challenges, it is not uncommon for dependent contracts to be misclassified to save on labor costs, bypassing insurance contributions and avoiding statutory dismissal rights. Greek courts assess the real nature of the relationship based on the facts, not merely the title of the contract.

Legal Recourse for Employees

Employees have the right to assert the true nature of their employment, especially in cases of misclassified contracts. Greek courts assess contract character based on criteria like regular working hours, employer instructions, and dependency, regardless of the contract title.

Working Hours

Article 58 of Law 4808/2021 amended the working time framework in Greece. Under the current rules:

• Statutory Weekly Working Time: 45 hours for a five-day work week and 48 hours for a six-day work week.
• Contractual Weekly Working Time: 40 hours per week, meaning 8 hours per day for a five-day week and 6 hours and 40 minutes per day for a six-day week.
• Daily Limits: In a five-day system, work up to 9 hours per day may apply within the statutory framework. In a six-day system, the statutory daily limit remains 8 hours.
• Breaks: Whenever daily working time is longer than 4 hours, a break of at least 15 minutes and not more than 30 minutes must be granted.

Probation Period

When entering into an indefinite employment contract, employers may establish a probationary period lasting up to six months. During this time, the contract or employment relationship is treated as a trial phase, allowing both parties to evaluate the fit of the employment arrangement.

This provision is often intended to give employers the opportunity to assess the employee’s skills and compatibility with the workplace, while also providing employees a chance to gauge their suitability for the position.

13th Month Salary

In Greece, additional mandatory holiday allowances apply in the private sector. Employees are entitled to a Christmas bonus, an Easter bonus, and a holiday allowance. In practice, this is commonly described as a 13th and 14th salary structure, with the Christmas bonus corresponding to one monthly salary and the Easter and summer holiday allowances making up the additional amount.

Termination, Severance Pay and Notice Period

In Greece, the termination of indefinite-term employment contracts can occur in two primary forms:

• Regular Termination (with Notice): This process is specifically applicable to white-collar employees.
• Irregular Termination (without Notice): This form does not necessitate any advance notification.

The notice period for regular termination is determined by the employee’s length of service with their employer, as outlined in Greek law:

• No notice required for employment lasting up to 12 months
• 1 month notice for 1 to 2 years of service
• 2 months notice for 2 to 5 years of service
• 3 months notice for 5 to 10 years of service
• 4 months notice for employment exceeding 10 years

Employers who issue the appropriate written notice are also responsible for providing the dismissed employee with half of the severance pay that would typically be granted in cases of termination without notice.

Severance Pay in Greece

Under Greek law, severance pay is mandated for the validity of dismissals in cases where it applies, both for those made with and without notice.

For dismissals with notice, the severance amount is reduced by 50%. The calculation follows the statutory framework based on the last regular remuneration and the employee’s years of service.

Treatment Based on Length of Service as of 12 November 2012

Employees with Less Than 17 Years of Service

For employees with less than 17 years of service as of 12 November 2012, severance pay is subject to the statutory caps and transitional rules.

Employees with More Than 17 Years of Service

Employees with more than 17 years of service as of 12 November 2012 remain subject to the transitional framework that preserves additional severance rights based on service frozen as of that date.

Employees vs Independent Contractors

In Greece, the distinction between employees and independent contractors hinges on the nature of the working relationship. An employee operates under a dependent service agreement, which stipulates that services will be rendered in exchange for a salary. This arrangement is characterized by a significant level of dependence, as the employer has the authority to issue binding commands regarding how, when, and where the services are performed. Additionally, the employer is responsible for monitoring the employee’s compliance with these directives.

Conversely, an independent contractor provides services autonomously, free from any employer control. They are not obligated to follow specific instructions or directives. There is no formal statutory checklist to differentiate between dependent employment and freelance services; rather, this classification is determined by courts on a case-by-case basis. Judges evaluate the specific terms and conditions of the work, considering the type and nature of the tasks involved.

Misclassifying a worker can expose an employer to significant risks, including administrative penalties and potential claims arising from a terminated employment relationship. Proper classification is crucial to mitigate these legal and financial liabilities.

Social Security in Greece

Social security contributions in Greece are required on salary and benefits, whether in cash or kind, provided by employers to their employees, subject to the applicable contribution rules and exceptions. The applicable social security contributions depend on the specific fund and coverage category to which the employee is registered.

As of 1 January 2025, the principal social security contribution rates are generally 13.37% for employees and 21.79% for employers, for a combined rate of 35.16%. For 2026, the monthly cap on social security contributions for the primary social security fund is €7,761.94.

Payroll in Greece

• Minimum Wage: As of 1 April 2026, the statutory minimum monthly salary in Greece is €920.00 for salaried employees, while the statutory minimum daily wage is €41.09 for blue-collar workers.
• Payroll Cycle: The payroll cycle typically operates on a monthly basis. Employers are required to make salary payments on the same date each month, ensuring that payments are completed no later than the agreed payday for the month.
• Overtime Compensation: Work beyond 40 hours per week up to 45 hours in a five-day system or up to 48 hours in a six-day system qualifies as extra work and is compensated at the hourly rate plus 20%. Work beyond 45 hours in a five-day system or beyond 48 hours in a six-day system qualifies as overtime and is compensated at the hourly rate plus 40%, subject to the legal formalities and procedures.

Mercans’ payroll capabilities

• Payroll Cycle: Mercans ensures seamless payroll processing, enabling businesses to pay employees and contractors in the local currency. Our payroll cycle is designed to be efficient and compliant with Greek regulations, ensuring timely payments that align with local practices.
• Payroll Setup, Processing, and Administration: At Mercans, we offer comprehensive payroll setup, processing, and administration services tailored to the unique requirements of businesses operating in Greece. Our team manages every aspect of payroll with meticulous attention to detail, ensuring accuracy and compliance with local laws. This allows you to focus on your core business operations without the worry of payroll management.
• Statutory Filings and Payments: Navigating the regulatory landscape in Greece can be complex. Mercans simplifies this process by handling all necessary statutory filings and payments on your behalf. Our dedicated team ensures that your business remains compliant with all legal obligations, delivering peace of mind through timely and accurate submissions.

Personal Income Tax in Greece

In Greece, individual income tax is levied on all individuals earning income within the country, irrespective of their nationality or permanent residency status. Permanent residents are liable to pay taxes on their worldwide income.

Taxation of Benefits in Kind

Benefits in kind provided to employees are generally subject to payroll withholding taxes rules, but the taxation mechanics depend on the benefit category and the timing of annual tax assessment.

Personal Income Tax Rates

Personal income tax rates in Greece vary depending on the income source, including employment, pensions, business income, and rental income.

Tax Scale for Employment Income, Pensions, and Business Profits

The income tax scale for employment income, pensions, and business profits is as follows:

Rental Income Taxation

The tax scale for rental income remains separate from the employment income scale.

Incentives for Building Upgrades

There was an incentive for building upgrades for certain qualifying expenses incurred between January 1, 2020, and December 31, 2024. The availability of any successor measure should be checked separately under the current tax rules.

Greece Employee Hiring Cost

Employing individuals in Greece entails various employer costs, including social security contributions and mandatory benefits. Here’s an indicative breakdown of the employer costs for an employee with a gross annual salary of €100,000:

Social Security Contributions

In Greece, employers are generally required to contribute to social security programs. Using the current principal employer contribution rate of 21.79%, the employer social security cost on gross salary is subject to the monthly insurable earnings cap. Because the annual salary of €100,000 exceeds the cap, the actual annual employer social security cost must be calculated by reference to the capped monthly insurable earnings and the relevant contribution categories.

Income Tax Withholding

Income tax in Greece is progressive, with rates applied according to specific income brackets. For employment income, the current scale remains:

• First €10,000: 9%
• Next €10,000: 22%
• Next €10,000: 28%
• Next €10,000: 36%
• Above €40,000: 44%

The final withholding outcome also depends on deductions, allowances, and payroll-specific factors.

Total Annual Cost

When combining social security contributions and gross remuneration, the total annual employer cost for an individual with a gross salary of €100,000 must be calculated with reference to the current social security cap and payroll settings. Additional expenses such as private pension contributions, private health insurance, allowances, or bonuses may further increase the overall cost.

Employee Benefits in Greece

In Greece, the employee benefits landscape is designed to provide support and enhance the well-being of employees across various life events. Here’s an overview of the key benefits available to employees:

• Sickness Allowance (eEFKA): Employees are entitled to sickness allowances provided by the social security system, subject to the applicable insurance conditions.
• Parental Leave Allowance: Greece offers parental leave allowances to eligible parents, helping them balance work and family responsibilities.
• Book Purchase Vouchers: These are not a standard universal statutory employee benefit and should not be treated as a general mandatory entitlement.
• Spectacle Checks: These are not a standard universal statutory employee benefit and depend on the specific legal or employer policy basis.
• Social Tourism Programs (STPs): Certain social tourism programs may be available through public schemes, subject to eligibility rules and annual program terms.
• Social Tourism Programs for eEFKA Pensioners: Specific programs may also be available for pensioners under the relevant public schemes.
• Programs of a Public Interest Nature: Public employment or social support programs may be available depending on the applicable scheme and eligibility conditions.
• Maternity Benefits: Special maternity benefits are available under Greek law and the social security framework, subject to eligibility rules.
• Providers of Voucher Services: Voucher-based benefits may exist in specific public or employer programs, but they are not universal statutory employee entitlements.
• Social Tourism Providers: A network of providers may support social tourism programs where applicable.

Work Permit in Greece

Obtaining work authorization in Greece is a necessary step for third-country nationals wishing to work legally in the country. The process is regulated and requires immigration compliance, employer sponsorship or invitation where relevant, and the appropriate visa or residence status.

Types of Work Permits

In Greece, work authorization is primarily categorized based on the applicant’s nationality and immigration status:

• Work Access for EU/EEA Citizens: Citizens from EU or EEA countries do not require a work permit to work in Greece.
• Work Authorization for Non-EU Citizens: Third-country nationals must hold a visa with the right to work, a residence permit with the right to work, or a certificate of submission of supporting documents for the issue or renewal of a residence permit with the right to work, depending on the case.

Application Process

The process of obtaining work authorization in Greece generally involves the following steps:

• Job Offer: Applicants must first secure a job offer from a Greek employer.
• Invitation and Immigration Process: For many long-term dependent employment cases, the employer must initiate the required invitation or employment process with the competent Greek authorities before the worker enters the country.
• Required Documentation:
  • Completed application forms under the applicable immigration procedure.
  • Valid passport.
  • Employment contract or binding job offer.
  • Supporting professional or educational documents where required.
  • Health insurance or healthcare coverage documents where required.
  • Any additional immigration, residence, or labor documents required by the specific route.
• Processing Time: The processing time can vary depending on the route, the authority, and the completeness of the application.
• Validity and Renewal: Residence permits for employment are generally granted for a defined validity period and may be renewable, provided the legal conditions continue to be met.

Important Considerations

• Sector-Specific Rules: Certain sectors or categories of work may have additional requirements, quotas, or special procedures.
• Language Proficiency: While not always mandatory, proficiency in Greek or English can enhance employment opportunities and may be required by some employers.
• Compliance with Labor Laws: Employers are responsible for ensuring that the working conditions comply with Greek labor laws, including salary standards and working hours.

EOR Solutions in Greece

Mercans provides efficient Employer of Record (EOR) solutions for businesses that have already identified their ideal candidates in Greece. Our services cover all aspects of the employee lifecycle, ensuring compliance with Greek labor laws and regulations.

• EOR + Recruitment: For companies seeking help with talent acquisition, our combined EOR and recruitment services offer a comprehensive solution. We leverage our extensive network and expertise to assist you in finding, onboarding, and retaining top talent, facilitating your entry into the Greek market.
• Visa Sponsorship and Global Mobility: Navigating the complexities of expatriate employment becomes easier with our visa sponsorship and global mobility services. We streamline the relocation process for your international workforce, ensuring adherence to Greek immigration and employment laws.
• AOR for Contractor Payments: Businesses facing challenges with contractor payments can utilize our Assistance on Record (AOR) services. We manage the intricacies of contractor payments, ensuring accuracy and compliance with local regulations.
• Converting Freelancers to Employees: Mercans supports the transition from independent contractors to permanent employees in Greece. Our expertise ensures a smooth conversion process while maintaining compliance with legal requirements.
• HCM Integration: Seamlessly integrate Mercans’ EOR services with your Human Capital Management (HCM) system in Greece for real-time data exchange, enhanced compliance, and cost-efficiency. Rely on our expertise for a unified, compliant, and efficient approach, improving your workforce management and payroll operations.

Best Employer of Record Greece

Why Mercans is the Leading Employer of Record in Greece:

• Regulatory Compliance: Mercans ensures full compliance with the Ministry of Labour and Social Security and other relevant authorities, adhering to all regulatory requirements and local labor laws, providing businesses with peace of mind in their employment practices.
• Independent Entity: Operating as a standalone entity, Mercans delivers reliable and customized employment services, allowing businesses to focus on their core operations while we manage their employment needs.
• Versatile Employment Management: Mercans effectively handles various forms of employment, including full-time employees, freelancers, contractors, and expatriates. This flexibility enables us to cater to diverse business requirements.
• Tailored for Large Enterprises: Our services are specifically designed to support large enterprises, offering scalable solutions that can adapt to complex organizational structures and evolving needs.
• Multi-Currency Payroll Management: Mercans simplifies financial operations for global and multinational companies by managing payroll in multiple currencies, ensuring seamless transactions across different regions.
• Global Reach with Multi-Country Payroll Capabilities: With an extensive international network, Mercans excels in managing payroll across multiple countries, facilitating smooth operations for businesses operating on a global scale.
• Data Protection and Compliance: Mercans prioritizes data security, adhering to stringent standards such as GDPR certification and compliance with SOC 1 and SOC 2, ensuring the highest level of data protection.
• Quality Certifications: Holding ISO 20000 and ISO 27001 certifications, Mercans demonstrates its commitment to excellence in IT service management and information security, providing peace of mind to clients.
• Robust Security Practices: Compliance with OWASP ASVS 3.0 standards ensures that Mercans implements strong security measures in application development and management, safeguarding client data.
• HRBlizz: Our proprietary HRBlizz platform offers a global payroll and talent management SaaS solution that streamlines payroll processes while ensuring compliance with local regulations. With a team of over 1,000 in-country specialists, we provide expert insights into labor laws and business protocols.
• G2N Nova: G2N Nova stands out as the world’s most advanced native payroll engine, providing global gross-to-net payroll processing in over 100 countries. Available as a SaaS or service delivery platform, it can operate independently or integrate seamlessly with major Human Capital Management (HCM) and Workforce Management systems.