What Should I Know About Hiring in Greece?
There are several considerations to make while hiring in Greece. To begin with, the nation adheres to a stringent set of regulations concerning the selection of new employees.
This means that you should take your time learning the guidelines before beginning your search for the ideal applicant. In addition, before posting an ad for a remote position, it’s wise to ensure that the salary and benefits package you’re offering is competitive.
It is unnecessary to have an employment agreement reduced to writing for it to be legally binding. On the other hand, terms of employment must be communicated to workers in writing. Employees have a right to know about their compensation, schedule, and other benefits under the Labor Code.
Why Is Greece a Good Choice for Finding Remote Employees?
Greece is an excellent location from which to source remote workers for a number of reasons. First, Greece is a great place to recruit remote workers in part because of the country’s relatively low cost of living.
This makes it a desirable choice for businesses trying to cut costs elsewhere. In addition, the government of Greece provides financial incentives to companies that invest and expand in Greece, increasing employment opportunities for Greek citizens.
Greece also has a well-developed network infrastructure, which facilitates communication with distant workers. Finally, hiring Greek remote workers offers significant value because of their high level of technical education and English ability.
How Can Native Teams Help You Hire in Greece
In order to begin hiring Greek remote workers, you will need either a Greek legal organization or the services of a global recruitment solutions provider. Through our employer of record services, Native Teams can assist you in hiring and onboarding your new team members, as well as managing their payroll, taxes, benefits, and overall compliance with Greek law.
Hire your first Greek employee with Native Teams.
Legal Requirements for Hiring in Greece
To calculate the salary and taxes in Greece please click here.
In Greece, the monthly minimum wage is from EUR 29.62 to 31.85 per day, and EUR 663.00 to 713.00 per month.
Contributions & Taxes
How much are the contributions & taxes?
In Greece, employees are taxed between 9% to 44% depending on their income bracket. An employer can expect to be taxed 24.8% on top of an employee’s salary.
Employers are expected to pay a tax rate ranging from 23.33% to 24.74%.
Greek law sets the corporate tax rate at 22% across the board. Some businesses, primarily in the financial sector, must still pay 29%.
It is projected that 22.54% of each employee’s pay goes toward covering the employer’s share of taxes and benefits.
Income tax rates in Greece are progressive up to 44%. It means that they rise in proportion to your earnings.
What is the payroll cycle?
In Greece, paychecks are typically distributed on the same day each month and no later than the last business day of the month.
Is there a 13th salary in Greece?
Workers receive 14 pay periods per year, on top of their yearly salary, they will also receive a one-month Christmas bonus, a half-month Easter bonus, and a full-month annual holiday bonus.
What are the main Labor Rules?
Probation period rules
The longest possible duration of probation is 12 months. In that period, the company can cancel the employment contract without providing any severance pay to the employee.
Within the first 12 months of employment, notification is not required;
One month’s notice is required after one year on the job, two months after two years, and three months after five years.
Three months’ notice is required for employees who have been with the company for five to ten years, and four months’ notice is required for employees who have been with the company for more than ten years.
Employees can expect the following amounts as part of their severance packages:
- Two gross, monthly salaries for 1 year up to 4 years.
- Three total monthly salaries after 4 to 6 years.
- Four total monthly wages for 6 to 8 years.
- Five gross, monthly salary for 8 to 10 years.
On average, Greek workers put in 8 hours per day, 5 days per week, beginning their shifts between 8 and 9 in the morning.
Although most jobs require employees to put in 40 hours a week, some offer the option of putting in an extra five hours at a premium pay rate.
Leave and Benefits
Leave and Benefits rules
There are a total of 12 Greek national holidays: 4 that are not celebrated annually and 8 that are:
- New Year’s Day
- Clean Monday
- Independence War
- Good Friday
- Easter Monday
- Labor Day
- Holy Spirit Monday
- Assumption of the Holy Virgin
- Ochi Day
- Christmas Day
- Day After Christmas
Employees are entitled to sick time based on their terms of employment. However, in most cases, the company will pay for half of the employee’s regular compensation for the first three days they are absent. After three days, the employee will receive sick pay from the Social Insurance Institute (EFKA). In a separate procedure, the professional must declare or request sick leave to EFKA so that EFKA can process the payment in a timely manner.
Maternity leave & Paternity leave
Mothers are protected from termination of their contracts throughout their pregnancies, for 18 months after giving birth, and for medical leave taken during or after giving birth.
There are a total of 17 weeks of maternity leave available, 8 weeks before the delivery and 9 weeks following. After IKA is deducted, an employer may pay some of the professional’s wage for the first month. Still, subsequent payments will always be based on the individual’s yearly income or compensation.
Following the birth of a child, the father is entitled to two days of paid leave.
Other leave (marriage, bereavement, exam leave)
An employee is entitled to within two business days of the death of a spouse, parent, child, or sibling.
When an employee gets married, they are given a 5-day paid vacation.
Leave for school grading purposes.
For each child under the age of 16, 4 working days are permitted.
What are the minimum vacation days?
When a company uses a 5-day workweek, the first year’s total is 20 working days. If the company follows a 5-day workweek schedule, the second year will have a total of 22 working days.
Health Security & Private Insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and Work Permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the Visa / Work Permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in Greece, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for Hiring in Greece?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
*Note: The provided information was accurate at the time of writing.