Hiring in Greece: EOR Guide & Compliance Overview

Overview

If you plan to hire in Greece in the next 30 days, start with an EOR for your first 1-5 employees and revisit entity setup once you reach 15+ local staff.

Greece is re-emerging as a serious destination for international hiring. Post-crisis reforms, a growing tech scene in Athens and Thessaloniki, and a digital nomad visa that’s actually functional have put Greece back on the map for companies hiring remote European talent. Senior developers earn €2,500–€4,500/month gross — roughly 40–50% below comparable roles in Germany or the Netherlands. The talent pipeline is strong in engineering, with the National Technical University of Athens and Aristotle University of Thessaloniki producing graduates who’ve historically exported to London and Berlin but are increasingly staying home as remote work eliminates the need to relocate.

The employment law side is where Greece earns its reputation for complexity. The mandatory 13th and 14th month salaries are statutory, not just market practice — every employee is entitled to them. The 13th salary (Christmas bonus) equals one month’s gross; the 14th is split between an Easter bonus (half a month’s gross) and a summer vacation bonus (half a month’s gross). These are paid on specific dates, prorated for partial-year employment, and cannot be negotiated away. Your annual salary cost is 14 months, not 12. Employer social security contributions add approximately 22.29% on top of gross salary. Combine the two and your effective employer burden reaches 40–45% above the base monthly salary — squarely in line with France and Austria.

Entity formation in Greece requires a single-member IKE (Ιδιωτική Κεφαλαιουχική Εταιρεία, private company) or a Monoprosopi EPE. The IKE is the preferred vehicle: no minimum capital requirement (technically €1), formation through the One-Stop Shop (e-YMS) in 3–5 business days, and total costs of €800–€2,000 in professional fees. But monthly tax and social security filings, Ergani platform reporting for every employment action, and collective agreement compliance create ongoing administrative burden that makes EOR attractive for teams under 10.

Key Employment Facts

Employer Cost

Greece’s employer EFKA (social security) contribution rate is 22.29% of gross salary: pension 13.33%, health 4.30%, supplementary 3.16%, unemployment 0.25%, workers’ housing 0.25%, and other levies 1.0%. Pension contributions are capped at a monthly salary ceiling of €7,126.94 gross; health insurance contributions have no cap.

The mandatory 13th and 14th month salaries add 16.67% to annual payroll: Christmas bonus (1 month’s gross, paid by December 21), Easter bonus (half a month’s gross, paid before Easter), and summer vacation allowance (half a month’s gross, paid with annual leave). These are statutory entitlements under Law 1082/1980, not market practice — they cannot be replaced by a higher monthly salary.

For a developer at €4,000/month gross: EFKA employer = €891/month (22.29%), 13th/14th salary provision = €667/month (amortized). Total monthly employer cost: approximately €5,558 — 39% above gross. Adding an EOR fee of $499–$599/month, all-in monthly cost runs approximately €6,000–€6,200. For higher earners (above the €7,127 pension ceiling), the effective EFKA rate falls, making Greece more cost-efficient for senior-level hires.

Statutory Benefits

Social Security (EFKA). Employer contributes 22.29% of gross salary: 13.33% pension, 4.30% health, 3.16% supplementary, 0.25% unemployment, 0.25% workers’ housing (OEK), and 1.0% other levies. Employee contribution: 13.87%. Contributions are capped at a monthly ceiling of €7,126.94 gross for pension contributions. The health insurance contribution has no cap.

13th and 14th Salary. Christmas bonus (Δώρο Χριστουγέννων): 1 month’s gross salary, paid by December 21. Easter bonus (Δώρο Πάσχα): half a month’s gross salary, paid before Easter. Summer vacation allowance (Επίδομα Αδείας): half a month’s gross salary, paid with annual leave. These are statutory entitlements under Greek labor law and apply to every employee regardless of contract terms. Total annual cost: 2 additional months’ salary per year, increasing your effective annual payroll by approximately 16.7%.

Annual Leave. 20 working days in the first calendar year, increasing to 21 days from the second year and 25 days after 10 years with the same employer (or 12 years of total employment). Leave pay includes a vacation bonus equal to the leave pay itself (the “summer vacation allowance” — part of the 14th salary calculation).

Sick Leave. Employer pays full salary for the first 3 days. For days 4–15: employer pays half salary, EFKA pays the other half. For days 16–25: EFKA pays the full benefit. Duration depends on tenure: employees with under 1 year of service get 13 days employer-paid sick leave; this increases with tenure up to 26 days for 15+ years. Employer costs for extended illness are limited but managing the complex split between employer and EFKA payments requires proper payroll setup.

Maternity Leave. 17 weeks total: 8 weeks before expected delivery and 9 weeks after. EFKA pays maternity benefit at full salary (subject to a cap). Additional 6-month parental leave is available at minimum wage level. Fathers receive 14 days of paternity leave at full pay from the employer.

Termination Rules

Greek termination law is employee-protective and expensive for employers — especially for long-tenured white-collar employees. The key features:

During probation (first 12 months): Either party can terminate without severance. The employer must still provide written notice via the Ergani platform.

After probation: The employer can terminate without cause by providing notice and paying severance. This is an at-will-with-severance model, not a cause-required model like Germany. However, the severance costs scale steeply with tenure and are among the highest in Europe for senior employees.

Severance calculation for white-collar employees (salaried): Based on monthly salary including prorated 13th/14th salary. Ranges from 1 month’s severance for 1 year of service to 12 months for 16+ years. If the employer provides advance notice, the severance amount is halved. Most employers pay in lieu of notice (full severance) rather than making the employee work out the notice period.

Ergani platform reporting. Every hire, termination, overtime authorization, and schedule change must be reported through the ERGANI electronic system (operated by the Ministry of Labor). Terminations must be reported within 4 working days. Late or missing ERGANI filings trigger fines of €300–€5,000 per violation.

Procedural requirements. Written termination notice delivered to the employee, Ergani filing, and payment of severance within a short window. Failure to pay severance on time can make the termination voidable, forcing reinstatement plus back pay.

Work Visas and Immigration

EU/EEA nationals have free movement rights and can work in Greece without a work permit — EOR onboarding for EU/EEA nationals takes 3–7 business days. Non-EU nationals require a residence permit for the purpose of paid employment.

The digital nomad visa applies only to people employed by foreign companies who do not work for Greek clients — it does not suit EOR employment, where the EOR’s Greek entity is the legal employer. For EOR purposes, non-EU nationals need the residence permit for paid employment, filed by the EOR as the employing entity with the relevant Decentralized Administration. A labor market test may apply, demonstrating no qualified EU national was available. Start immigration at least 8–10 weeks before the intended start date. The Ergani platform requires pre-hire registration before the employee’s first day, even while the permit is being processed — coordinate timing with your EOR carefully.

Frequently Asked Questions

How do the 13th and 14th month salaries actually work in practice?

Three separate payments: the Christmas bonus (1 full month) paid by December 21, the Easter bonus (half a month) paid before Easter Wednesday, and the summer vacation allowance (half a month) paid with annual leave. All are calculated on the employee’s regular gross monthly salary. If the employee works part of the year, each bonus is prorated. These are mandatory under Law 1082/1980 and cannot be replaced by a higher monthly salary — the law specifically requires these as separate payments on the specified dates. Social security contributions apply to these bonuses. Budget for 14 months of total salary cost plus social contributions on all 14 months.

Is Greece’s 12-month probation period really that long?

Yes. Greece has one of the longest probation periods in the EU. During the first 12 months of employment, the employer can terminate the relationship without severance, though written notice and Ergani reporting are still required. After 12 months, termination triggers mandatory severance that scales with tenure. This long probation period is actually favorable for employers — it gives you a full year to evaluate the hire before severance obligations kick in. Some collective agreements may set shorter probation periods for specific roles.

Can I avoid the high severance costs by using fixed-term contracts?

Fixed-term contracts are permitted for legitimate temporary needs (project work, seasonal demand, replacement). However, successive fixed-term contracts are limited — three renewals within 3 years, with total duration not exceeding 3 years. After that, the contract automatically converts to indefinite. Using fixed-term contracts to circumvent termination protections is well-understood by Greek labor courts and will result in reclassification. For ongoing roles, plan for indefinite employment and budget for the severance exposure.

What does the Ergani platform mean for day-to-day employment management?

Ergani is Greece’s mandatory electronic employment reporting system, and it’s more intrusive than anything in Western Europe. You must report: every new hire (before the employee’s first day), every termination (within 4 working days), every overtime request (before the overtime occurs), and changes to work schedules. Fines for non-compliance range from €300 to €5,000 per violation. Your EOR handles all Ergani filings, but you should understand that spontaneous overtime — common in tech companies — requires advance Ergani authorization, which means your EOR needs real-time responsiveness, not batch processing.

To connect this guidance with live hiring demand, see hiring your first international employee and remote jobs by country.

Further Reading

• Best EOR for Greece — Provider comparison for Greece hiring
• Hiring in Europe Guide — Regional compliance patterns and market comparisons
• EOR vs PEO — When EOR is the better fit
• Top EOR reviews
• Hiring your first international employee

Anchal Katyal · Founder, eorHQ

Anchal has spent over a decade in product strategy and market expansion across Asia and the Middle East. She evaluates EOR providers on compliance depth, entity ownership, payroll accuracy, and in-country support quality.

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