Greece offers compelling opportunities with its strategic Mediterranean location, well-educated workforce, and significant EU financial support of €61.9 billion. The nation leads global maritime transport with nearly 5,000 vessels and provides favorable policies for remote workers. However, foreign companies face hurdles like entity incorporation, strict labor compliance under Greek employment law, and complex payroll requirements.
An Employer of Record service eliminates these barriers by handling all legal, payroll, and compliance responsibilities while you focus on managing your team.
Greece: Employment laws at a glance
Currency
| Minimum salary
| Working hours |
Overtime 20%–40% above hourly rate; subject to collective agreements | Employer taxes
~21.79% of gross salary | Public holidays
|
Greece’s labor market is governed by clear but stringent regulations. You need to understand the key employment laws if you are looking to expand to the country.
Key considerations and challenges when hiring in Greece
When you hire in Greece, you face compliance obligations and administrative processes that can create delays and legal exposure, which threaten your expansion timeline.
Compliance challenges
- Provide mandatory EFKA health coverage for all employees
- Offer full benefits: pensions, leave, annual bonuses, and sector allowances
- Register as an employer with EFKA and the local tax office (Eforia) before hiring
- Pay ~21.79% in payroll taxes and social security contributions
- Risk fines, litigation, and back payments for noncompliance
Entity setup challenges
- Company incorporation takes 4–8 weeks
- Initial setup costs $5,000–$15,000; annual legal/accounting $2,000–$5,000
- Maintain ongoing compliance: payroll, tax filings, EFKA reporting, labor inspections
- Face rising administrative burden from evolving employment laws
Legal risk challenges
- Misclassifying contractors can trigger reclassification, back payments, and fines over $5,000 per worker
- Risk audits and legal disputes over payroll or benefits
- Face wrongful termination claims requiring severance, notice, and damages
These hurdles slow down hiring and increase operational risk. An EOR removes these barriers by managing compliance, payroll, and HR responsibilities, allowing you to focus on business growth.
What is an EOR in Greece?
An Employer of Record in Greece legally employs staff for clients under Greek law, handling labor, tax, and social security with EFKA and the tax authority. Client retains operational control.
EOR operations:
- Assumes full legal employer responsibilities while the client retains operational management
- Manages payroll processing, EFKA registration, tax filings, and regulatory compliance
- Provides all statutory benefits required under Greek Labor Law, including health coverage, pension contributions, and leave entitlements
- Supports work visa and permit applications for foreign nationals according to immigration regulations administered by Greek consular authorities and the Ministry of Labour
Hiring timeline comparison
Time is a critical factor when expanding into new markets. The comparison below shows how EOR can significantly accelerate your hiring process.
- With an EOR: 2 weeks
- Without an EOR (with entity setup): 6–8 weeks
EOR enables faster, compliant hiring in Greece without a local entity. Local setup offers more control and long-term flexibility for permanent operations.
EOR vs entity: Cost savings and benefits
Here’s a cost comparison of hiring with an entity vs an EOR in Greece. The savings become especially significant when you factor in time, risk mitigation, and ongoing administrative costs.
Cost factor | With entity setup | With EOR |
Company registration fees | $5,000–$15,000 | No setup cost |
Legal and accounting | $2,000–$5,000 annually | Included |
Chamber of Commerce fees | $500 a year | Included |
Payroll vendor fees | $150–$200 a month | Included |
EOR mitigates risks: employee misclassification (treating employees as contractors), tax penalties (>$5,000/violation), and employment disputes. Ensures contract compliance and reduces fines. Below is a step-by-step guide.
Step-by-step: How EOR simplifies hiring in Greece
Here’s how an Employer of Record (EOR) in Greece streamlines every stage of the hiring process.
Step 1: Contracts and compliance
Employment contracts in Greece can be oral or written, but written contracts are strongly recommended for legal protection. Mandatory clauses include probation periods, termination procedures, confidentiality agreements, and terms governed by Greek Labor Law. You must register all employment contracts on the ERGANI platform before the employee starts work. Key requirements include:
Probationary period
| Termination notice
1–4 months, depending on tenure | Severance pay
2–4 months’ salary based on service length |
How an EOR simplifies contracts in Greece: An EOR simplifies contracts in Greece by creating labor law–compliant agreements, updating them for legal or wage changes, and maintaining proper documentation to prevent disputes.
Step 2: Payroll and compensation
Payroll in Greece is strictly regulated, with mandatory contributions and specific payment cycles that must be followed precisely. Errors can result in penalties and employee disputes.
Payroll cycle | Monthly (mandatory) |
Employer social security | ~21.79% of gross salary |
Tax year | Jan 1–Dec 31 |
13th/14th salary | Yes; Christmas (full month), Easter (half month), Summer bonus (half month) — legally required |
Beyond payroll rules, you must also handle mandatory contributions and benefits. Here’s a breakdown:
What are employer costs and mandatory benefits in Greece?
When you hire in Greece, you’ll legally pay approximately 21.79% on top of each employee’s gross salary to cover mandatory social security, health, and welfare contributions.
Here’s what you’ll be paying:
- Pension/EFKA contributions: 13.33%
- Health coverage: Included in social security
- Employee contribution: 6.67%
- Unemployment, maternity, and other benefits: Included in the 21.79% total
- Administrative fee: $21 per employee per year
- Monthly contribution cap: $7,990 (€7,572.62) from January 2025
Total employer cost: ~21.79%
These are baseline rates. Your actual costs may vary based on your industry sector and specific employee circumstances.
For a detailed breakdown, read our guide on employee benefits in Greece. Or use our employee cost calculator to see the exact monthly cost of hiring in Greece.
How an EOR simplifies payroll in Greece: An EOR automates salary, tax, and EFKA contribution calculations, updating in real time to ensure full compliance and accuracy.
Step 3: Benefits, leave, and holidays
You must track and provide statutory leave, manage benefits administration, and ensure proper payment for public holidays as stipulated by Greek Labor Law. Missing these obligations can lead to employee claims and legal penalties.
Annual leave
| Public holidays 12 days per year | Sick leave
|
Maternity leave 119 days (mostly EFKA-paid) | Paternity leave 14 days (employer-paid) | Parental leave 4 months unpaid per child (until age 8) |
Bereavement leave 2–5 days (paid, per relation) | Marriage leave 5 days (paid) | Blood donation leave 1 day per year (paid) |
How an EOR simplifies benefits in Greece: EOR manages statutory leave, coordinates EFKA sick and maternity claims, and handles optional perks like meal or insurance plans.
Step 4: Hiring foreign talent (Work visas)
To sponsor and legally employ foreign workers, you must meet specific sponsorship requirements and follow local compliance procedures.
- Visa types
- National Visa (Type D): For short- to mid-term foreign hires in Greece
- EU Blue Card: For highly skilled roles with a salary ≥1.5× national average
- Digital Nomad Visa: For remote workers; valid 12 months, renewable
- ICT Visa: For intra-company transfers under EU Directive 2014/66/EU
- Seasonal Work Visa: For agriculture, tourism, and other seasonal sectors
- Sponsorship requirements
- Employer registration: Must register with EFKA and the local tax office (Eforia)
- Compliant payroll: Maintain accurate payroll, tax, and social security records
- Employment contracts: Provide written, Greek Labor Law–compliant contracts
- Processing times: Usually 3–8 weeks based on visa type and documentation quality
How an EOR simplifies visas in Greece: EOR streamlines visa management by handling sponsorships, permits, and compliant contracts through its local entity, allowing legal employment without setting up a company.
Step 5: Termination
- Greece does not recognize at-will employment.
- Just cause is required for summary dismissal.
- Otherwise, employees are entitled to advance notice and severance payments.
- Notice periods range from 1–4 months, depending on tenure.
- Severance pay equals 2–4 months’ salary based on years worked.
- Wrongful termination triggers substantial fines, back pay obligations, and potential litigation for damages.
How an EOR simplifies termination in Greece: EOR calculates notice and severance, prepares compliant documents, and files with EFKA, ensuring risk-free, lawful exits.
Key considerations when choosing an EOR in Greece
Choosing the right Employer of Record (EOR) partner in Greece requires assessing both their local expertise and operational reliability.
Employment in Greece: Recap of key terms
Familiarity with key employment terms provides valuable context for evaluating a provider’s competence and compliance strength.
- EFKA (Unified Social Security Fund): Social Security authority managing health, pension, and payroll administration
- Christmas, Easter, Summer Bonuses: Mandatory additional salaries totaling 2 months paid throughout the year
- Greek Labor Law: Core legislation outlining minimum standards for pay, leave, and contracts
- Severance: Legally required severance for unfair dismissal, calculated by a statutory formula
Tips for choosing an EOR provider in Greece
- Verify strong local HR and legal expertise
- Assess compliance record in labor law, tax, payroll, and benefits
- Review clear contracts, indemnities, and financial stability
- Evaluate the platform for payroll, contracts, and leave management
- Check reputation via client testimonials and reviews
Why choose Multiplier EOR in Greece?
Greece presents significant opportunities in technology, financial services, and maritime sectors, supported by a stable political environment and skilled workforce. However, you face substantial challenges, including complex payroll compliance, benefits administration, labor law hurdles, and lengthy entity setup processes.
With Multiplier, you bypass entity setup, reduce compliance risks, and start hiring in days:
- Speed: Onboard employees in 24–72 hours
- Compliance by design: Automated alignment with Greek Labor Law, EFKA regulations, and tax requirements
- Cost efficiency: No incorporation fees; avoid legal penalties exceeding $5,000 and compliance costs
- All-in-one platform: Manage contracts, payroll, benefits, and leave from one dashboard
- Local expertise: Greek HR and legal specialists who track wage reforms and labor law changes
What G2 users say about Multiplier
“The platform makes it simple to onboard employees quickly, manage payroll across multiple countries, and stay compliant with local regulations — all within an intuitive, user-friendly system. It has significantly reduced the complexity of managing our international operations.”
– David G.
Ready to learn more and expand your business in Greece?
Book a demo with Multiplier today and let us take care of your compliance hurdles.
FAQs
What is the minimum wage in Greece?
As of April 2025, the monthly minimum wage is $927 (€880), subject to sector-specific adjustments.
How long does it take to hire in Greece via an EOR?
You can onboard employees in 2 weeks with an EOR; entity setup takes 6–8 weeks.
Are foreign employees allowed to work in Greece?
Yes, with valid work visas sponsored by compliant employers or EORs.
What social security payments must employers make?
Employers contribute approximately 21.79% to EFKA for pension, health, and other statutory costs.
