Quick facts

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Greece, located in Southern Europe, has a service-based economy that heavily relies on tourism, shipping, and agriculture. The country is part of the European Union and has undergone significant economic reforms over the past decade. Greece provides a highly regulated labor market with strong employment protections, especially in sectors like tourism and seasonal work.

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Employment Contracts

In Greece, indefinite contracts are the most common form of employment, but fixed-term contracts are also widely used, particularly in seasonal industries like tourism. Fixed-term contracts automatically expire upon reaching the agreed end date unless renewed in writing. The renewal of fixed-term contracts is limited to three consecutive renewals within a three-year period. If there is no justified reason for successive contracts, they are considered indefinite.

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Probation Period

Under Greek law, the first 12 months of an indefinite employment contract are considered a probation period. During this time, the employer may terminate the contract without notice or severance pay.

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Working Hours

Employees in Greece typically work 40 hours per week. Work exceeding 9 hours per day or 45 hours per week is considered overtime. Two types of overtime are recognized: overwork (between 41 and 45 hours per week) is paid at 120% of the hourly wage, while legal overtime (over 45 hours per week) is paid at 140%.

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Vacation Days

Employees are entitled to 20 working days of paid leave in their first year of employment. For each additional year of service, they gain 1 extra day, up to a maximum of 25 days after 10 years of service. After 25 years, employees are entitled to 26 days of paid leave.

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Sick Leave

In Greece, employees receive 50% of their salary for the first 3 days of sickness, with the remainder partially reimbursed by the social security system. Sick leave starts after the first 10 calendar days of employment. For extended illness, the employer and social security share responsibility for payments.

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Wages and Salary Payment

The minimum wage in Greece is €830 gross per month for full-time employees, effective at 2024. This amount is typically paid 14 times a year, including Christmas, Easter, and summer holiday bonuses. Employers deduct social security contributions before paying salaries.

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Public Holidays

Greece observes several public holidays, including:

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• January 1: New Year's Day
• March 25: Independence Day
• May 1: Labour Day
• August 15: Assumption Day
• December 25: Christmas

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In addition to these national holidays, some regions have local holidays based on religious or cultural events.

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Employer Taxes

Employers in Greece contribute 22.54% of an employee’s gross salary towards social security, which includes:

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• 13.33% for pensions
• 4.30% for healthcare
• 1.41% for unemployment insurance

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Employee Taxes

Employees contribute 14.12% of their gross salary towards social security, which covers:

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• 6.67% for pensions
• 2.15% for healthcare

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Income tax rates vary based on income levels:

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• 22% for income up to €20,000
• 29% for income between €20,001 and €30,000
• 37% for income between €30,001 and €40,000
• 45% for income over €40,001

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Notice Period

For employees with 12 months to 2 years of service, 1 month’s notice is required for dismissal. This increases to 2 months for 2 to 5 years of service, and up to 4 months for employees with 10 years or more of service. If the employer provides proper notice, severance pay is reduced by 50%.

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Termination and Severance Pay

Employment contracts can be terminated with or without notice. If notice is provided, severance pay is reduced by 50%. For example:

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• After 1 year of employment, the employee is entitled to 1 month's salary as severance.
• After 6 years, the severance pay is 2 months' salary with notice, or 4 months' salary without notice.