Greece has emerged as an attractive hub for global employers, combining a skilled, multilingual workforce with access to the EU market and a growing technology and services sector. With a GDP of over USD 250 billion (2025), Greece’s economy is anchored in tourism, shipping, energy, finance, and IT services, while Athens and Thessaloniki are becoming vibrant startup and outsourcing hubs.

The Greek workforce is well-educated, cost-competitive compared to Western Europe, and multilingual, with strong participation in engineering, IT, and finance. However, employers must navigate a complex labor code, strict union influence, and a high social contribution burden. Payroll requires precision, as benefits and entitlements are heavily regulated.

Gloroots helps you hire in Greece quickly and compliantly. As your Employer of Record (EOR), we manage contracts, payroll, and benefits, ensuring full alignment with Greek labor laws while you focus on building your team.

What are the key facts about Greece’s economy and workforce?

Economic Highlights

• GDP: ~USD 250 billion (2025).
• Major Industries:
  • Tourism & Hospitality (major global hub).
  • Shipping & Maritime Services.
  • Energy (renewables, oil & gas).
  • Finance & Banking.
  • IT Services & Outsourcing.
• Startup Ecosystem: Growing presence in Athens and Thessaloniki, supported by EU funding and government incentives.

Workforce Characteristics

• Workforce Size: ~4.5 million.
• Median Age: ~45 years.
• Education: Strong STEM graduates from University of Athens, Aristotle University, NTUA.
• Languages: Greek (official), English widely spoken, especially in business and IT.
• Talent Hubs: Athens (finance, IT, shared services), Thessaloniki (engineering, outsourcing), Patras (research & innovation), Crete (tourism and services).

What is the work culture and talent pool like in Greece?

Greek work culture combines hierarchy and relationship-driven decision-making with increasing openness to collaboration and flexibility, particularly among younger professionals. Employees value stability, clear career growth, and competitive benefits, while international companies can attract top talent with opportunities for remote work, professional development, and international exposure.

White-Collar Talent Strengths

• IT & Software Development: Growing outsourcing/nearshoring hub.
• Finance & Accounting: Athens as a financial center.
• Engineering: Mechanical, civil, and electrical expertise.
• Tourism & Hospitality Management: Specialized professionals across the country.

What are the Work Visas in Greece: How Gloroots Helps?

Main Types of Work Visas

1. EU/EEA/Swiss Nationals
   • No visa required; free movement applies.
2. National Work Visa (D-Type)
   • For non-EU nationals with an employer sponsor.
   • Typically issued for 1 year, renewable.
3. EU Blue Card
   • For highly qualified non-EU professionals with higher education.
   • Requires a job offer with salary at least 1.5x the national average.
4. Intra-Company Transfer (ICT) Permit
   • For employees of multinationals relocated to a Greek branch.
5. Seasonal Work Permits
   • For industries like tourism and agriculture (short-term).

Challenges in Employer-Sponsored Work Visas

• Only Greek-registered entities can sponsor visas.
• Applications require employment contracts, proof of qualifications, and compliance with minimum salary thresholds.
• Processing can take 2–3 months, delaying onboarding.

How Gloroots Simplifies Immigration in Greece

• Sponsors employees through its local entity.
• Drafts compliant contracts in Greek/English for visa applications.
• Files applications with the Greek Ministry of Migration and Asylum.
• Manages renewals and residency obligations.
• Enables faster onboarding without entity setup.

Visa Sponsorship: Direct Employer vs. Gloroots

Q: What is the process of setting up an entity in Greece?

Direct Entity Setup

• Common Structures:
  • Société Anonyme (AE) – equivalent to a public limited company.
  • Private Company (IKE) – simplified, flexible for foreign investors.
  • Limited Liability Company (EPE) – traditional form for SMEs.
• Requirements:
  • Minimum share capital: EUR 1 (IKE) or EUR 25,000 (AE).
  • Local tax registration (AFM).
  • Registration with the General Commercial Registry (GEMI).
  • Registration with EFKA (Unified Social Security Fund).
• Timeline: 2–3 months for incorporation, tax ID, and social security registration.
• Ongoing Compliance: Annual reporting, payroll filings, social contributions, VAT, and corporate tax returns.

Using Gloroots EOR Instead

• Hire in 2–5 days without incorporation.
• Contracts, payroll, and benefits managed via Gloroots’ Greek entity.
• Full compliance with Greek labor laws and CBAs.
• No need for capital investment or local directors.

Direct Entity vs. Gloroots EOR in Greece

Q: What are the key employment laws in Greece that employers should know?

Greek employment is governed by the Labour Code, EU directives, and Collective Bargaining Agreements (CBAs). Laws are protective, covering hours, overtime, leave, and severance.

Key Employment Regulations

• Contracts: Must be written; probation up to 12 months.
• Working Hours: 40 hours/week standard.
• Overtime: 120%–140% of base pay depending on hours worked.
• Minimum Wage (2025): EUR 910/month (gross, 14 payments annually).
• Annual Leave: 20 days (increasing with service).
• Public Holidays: 12+ national holidays.
• Sick Leave: Paid leave covered partly by employer (first 3 days) and then EFKA.
• Maternity Leave: 17 weeks (8 before, 9 after birth).
• Paternity Leave: 14 days paid.
• Parental Leave: Up to 4 months unpaid (job-protected).
• Severance: Based on tenure; 1–12 months’ salary if terminated without notice.

Employment Law: Direct Employer vs. Gloroots

Q: What are the risks of misclassification in Greece?

Summary Info Section

Greece enforces strict rules on employee vs. contractor classification. Misclassifying workers to avoid social contributions or benefits can lead to back payments, penalties, and reclassification lawsuits.

Indicators of Employment

A worker is considered an employee if:

• They work fixed hours under employer control.
• They are integrated into company operations.
• They are paid monthly, not per project.

A genuine contractor should:

• Work independently with multiple clients.
• Use own tools and bear business risk.
• Invoice per project/deliverable.

Penalties for Misclassification

• Retroactive EFKA social contributions.
• Unpaid overtime, leave, and benefits.
• Severance liabilities.
• Administrative fines and potential court disputes.

Misclassification: Direct vs. Gloroots

Check your risk with our Misclassification Calculator.

Q: How does an EOR help you run payroll in Greece?

Payroll Compliance Requirements

• Payroll Cycle: Monthly, salaries usually paid by end of month.
• Payslips: Required in Greek; must include gross, net, taxes, and EFKA contributions.
• Withholdings:
  • Income tax (progressive up to 44%).
  • Employee EFKA contributions (~15.75%).
• Employer Contributions: EFKA ~22.54% of gross salary.
• Reporting: Monthly filings with EFKA and tax authorities.

How Gloroots Simplifies Payroll

• Processes gross-to-net salaries with all deductions.
• Issues compliant payslips in Greek/English.
• Remits EFKA contributions and income tax.
• Files monthly declarations with EFKA and tax offices.
• Ensures compliance with CBAs and overtime rules.

Payroll: Direct Employer vs. Gloroots

Q: How does tax compliance work in Greece?

Employee Taxation

• Personal Income Tax (2025, progressive):
  • Up to EUR 10,000 → 9%
  • EUR 10,001 – 20,000 → 22%
  • EUR 20,001 – 30,000 → 28%
  • EUR 30,001 – 40,000 → 36%
  • Above EUR 40,000 → 44%
• Employee Social Contributions (EFKA): ~15.75% (pension, health, unemployment).

Employer Contributions

• Employer EFKA contributions: ~22.54% of gross salary (pension, health, accident, unemployment).
• Occupational Insurance: Required for certain industries via CBAs.
• Severance Funding: Accrued separately as per labor code.

Corporate Taxation

• Corporate Income Tax: 22%.
• VAT: 24% standard rate (reduced rates for islands and essential goods).

Tax Compliance: Direct Employer vs. Gloroots

Q: What benefits and entitlements do employees in Greece receive?

Statutory Benefits

• Annual Leave: 20 days (increasing with tenure).
• Public Holidays: 12+ per year.
• Sick Leave: Paid by employer (first 3 days) and EFKA thereafter.
• Maternity Leave: 17 weeks paid.
• Paternity Leave: 14 days paid.
• Parental Leave: Up to 4 months unpaid (job-protected).
• Severance Pay: Based on tenure, ranging from 1 to 12 months’ salary.
• Health Insurance: Provided through EFKA contributions.

Common Supplemental Benefits

• Private health/dental insurance.
• Meal vouchers or lunch subsidies.
• Transportation allowances.
• 13th and 14th salary payments (common practice, often mandated by CBAs).
• Professional training support.

Benefits: Direct Employer vs. Gloroots

Q: What’s involved in hiring and onboarding employees in Greece?

Key Steps in Hiring & Onboarding

1. Employment Contract
   • Must be in Greek (bilingual versions are acceptable).
   • Must outline role, salary, hours, leave, and probation.
2. Probation Period
   • Up to 12 months, depending on contract type.
3. Registrations
   • Employees must be registered with EFKA (social security).
   • Employer must notify the ERGANI electronic labor system.
4. Onboarding
   • Orientation on policies and health & safety.
   • Equipment and access allocation.
   • Introduction to CBA provisions (if applicable).

Hiring & Onboarding: Direct Employer vs. Gloroots

Q: How do you successfully manage a workforce in Greece?

Key Considerations

• Compliance with CBAs: CBAs influence wages, allowances, and benefits across industries.
• Work Culture: Relationship-driven, hierarchical but collaborative; employees value job security and personal recognition.
• Employee Benefits: Statutory benefits are generous, but supplemental perks (health, transport, 13th/14th salary) are expected.
• Performance Management: Clear feedback, career progression, and professional training are valued.
• Unions: Active across sectors; employers must respect collective agreements.

How Gloroots Supports Workforce Management

• Aligns contracts and payroll with CBAs.
• Helps design benefits packages to attract and retain talent.
• Provides HR expertise for employee relations.
• Ensures compliant tracking of overtime, leave, and severance.
• Supplies devices for remote and hybrid EOR employees.

Q: What are the key steps and requirements in terminating employees in Greece?

Termination in Greece is tightly regulated by the Labour Code and frequently shaped by CBAs. Employers must validate grounds, respect notice rules, file notifications in ERGANI, and calculate statutory severance accurately. Mishandling process or payouts can trigger reinstatement claims, back pay, or fines.

Termination Framework

• Grounds
  • With notice (ordinary dismissal): Role redundancy or business reasons; performance (documented).
  • Without notice (extraordinary dismissal): Serious misconduct; high evidentiary bar.
• Notice Periods (indicative by tenure, white-collar)
  • < 1 year: up to 1 month.
  • 1–2 years: ~2 months.
  • 2–5 years: ~3 months.
  • 5–10 years: ~4 months.
  • 10+ years: 4–6 months (CBAs may vary).
  • Pay in lieu permissible.
• Severance Pay (ordinary dismissal)
  • Tenure-based schedule (months of salary).
  • Reduced or nil where serious misconduct is proven.
  • CBAs may enhance thresholds.
• Procedure & Filings
  • Written notice to employee.
  • ERGANI notification within statutory deadline.
  • Immediate payment of severance and accrued items.
• Probationary Period
  • Up to 12 months; simplified exit, but written notice and ERGANI steps still apply.

Termination: Direct Employer vs. Gloroots

Q: What is the offboarding process in Greece?

Summary Info Section

Offboarding must combine legal formality (notice, ERGANI filings) with financial precision (severance, unused leave, allowances). Employers also need to deregister social security and ensure data/IP handover. Errors can lead to penalties or employment claims.

Key Steps

1. Written Notice & Timeline
   • Confirm grounds, notice length or pay in lieu; issue bilingual (GR/EN) notice.
2. Regulatory Notifications
   • File termination in ERGANI within the statutory window.
   • Update EFKA where required.
3. Final Payroll & Benefits
   • Pay earned salary, severance, unused annual leave, prorated bonuses/allowances per CBA.
   • Deliver compliant final payslip and receipts.
4. Documents to Employee
   • Employment certificate, tax forms, social insurance confirmations.
5. Assets & Access
   • Return of equipment, revoke systems access, confirm IP and data return.
6. Recordkeeping
   • Maintain termination file for audit and dispute defense.

How Gloroots Simplifies Offboarding

• Calculates severance and entitlements exactly per tenure and CBA.
• Files ERGANI and coordinates with EFKA.
• Issues bilingual, compliant documentation.
• Runs structured asset return and secure data offboarding.
• Provides audit-ready files aligned with global compliance.

Offboarding: Direct Employer vs. Gloroots

Q: What costs and financial planning do you need with an Employer of Record in Greece?

Summary Info Section

Greece’s total cost of employment (TCE) layers gross salary with EFKA employer contributions (~22.54%), employee deductions, CBA-driven allowances, and tenure-based severance risk. Budget discipline requires accurate modeling across salary, social security, and benefits. Gloroots consolidates these into a single monthly invoice, aligned with payroll management best practices and transparent EOR fees.

Typical Cost Components (illustrative)

• Base Salary: Market rates vary by city/role (Athens, Thessaloniki).
• Employer Social Contributions (EFKA): ~22.54% of gross.
• Employee Deductions: ~15.75% withheld and remitted.
• CBA Items: Minimums, allowances, overtime premiums, potential 13th/14th salary practices.
• Benefits: Statutory health via EFKA; optional private medical, meal/transport support.
• One-Offs: Equipment, onboarding, training, outplacement.
• Severance Provisioning: Tenure-based; prudent to accrue.

How Gloroots Optimizes Cost Planning

• Predictable monthly invoicing: Salary + statutory + EOR fee.
• Embedded EFKA and tax engines ensure accurate remittances.
• Severance and leave accruals forecasted to avoid surprises.
• Local benefits design to stay competitive without overspend (employee benefits guide).

Cost Planning: Direct Employer vs. Gloroots

Q: What challenges might you face, and how do you solve them using EOR in Greece?

Greece offers strong, multilingual talent and EU access, but hiring can be slowed by entity setup, CBA-driven rules, EFKA social security complexity, and strict termination/severance provisions. Compliance errors often result in back-pay, penalties, and ERGANI issues.
Gloroots, as your Employer of Record, removes these barriers so you can scale confidently and compliantly.

Key Challenges & Gloroots Solutions

Direct Employer vs. Gloroots (Challenge Snapshot)

Conclusion

Greece combines EU market access, competitive labor costs, and multilingual talent—particularly in IT, finance, engineering, and shared services. The flip side is a regulatory-heavy environment: CBAs, EFKA contributions, ERGANI notifications, and tenure-based severance require careful execution.

With Gloroots as your Employer of Record in Greece, you can:

• Hire in days, without opening a local entity.
• Stay compliant with labor law, CBAs, EFKA, and tax obligations.
• Offer statutory and supplemental benefits that attract top talent.
• Simplify payroll, filings, and HR administration with a single partner.

Gloroots makes hiring in Greece simple, compliant, and fast.