How to Hire Employees in Greece

Greece is an EU member state with a well-educated, multilingual workforce and growing international appeal for companies expanding into Europe.

Skilled talent availability, access to the EU Single Market, and competitive employment costs relative to some Western European markets are driving hiring interest in Greece.

Key considerations for companies hiring in Greece:

• Greece's shipping, technology, and professional services sectors offer deep, qualified talent pools
• Greek labour law involves detailed rules on contracts, payroll, social security, and termination
• Choosing between entity setup, EOR, or contractor models shapes your compliance exposure and speed

This guide covers hiring models, employment contracts, payroll obligations, social security contributions, onboarding requirements, and termination rules for foreign employers entering the Greek market.

Building a compliant Greek workforce starts with understanding the employment obligations that apply from day one.

Overview of Hiring Employees in Greece

Greece offers a workforce with strengths across shipping, tourism, technology, and professional services. Recent labour reforms, including Law 4808/2021, have updated rules on working time, telework, and platform work, making compliance more complex for international employers.

Common challenges foreign employers face when hiring in Greece:

• Managing simultaneous obligations under Greek national law, EU regulations, and collective agreements
• Ensuring correct registration with EFKA and timely ERGANI notifications for new hires
• Understanding payroll complexity, including 13th and 14th salary payments and monthly contribution cycles

This guide is a practical hiring roadmap, not a substitute for local legal advice.

Employers will learn how to hire compliantly, structure payroll correctly, and efficiently manage Greek employment obligations.

What Are the Employment Options for Hiring Employees in Greece?

Foreign companies entering Greece have three primary routes to engage workers, each with different compliance requirements, cost structures, and operational trade-offs.

Companies typically select their model based on budget, risk tolerance, and how quickly they need to hire.

Each option is explained in detail below.

Hiring Through a Local Entity

Establishing a Greek legal entity involves registering with the General Commercial Registry (GEMI), obtaining a Tax Identification Number (AFM), and registering as an employer with the social insurance authority, e-EFKA.

Once registered, the entity manages local payroll, withholds income tax, pays employer social security contributions, and ensures employment contracts comply with Greek labour law and applicable collective agreements.

Direct entity setup makes most sense for companies committing to long-term Greek operations, larger teams, or those requiring direct control over employment policies.

Hiring Through an Employer of Record (EOR)

An EOR in Greece becomes the worker's legal employer, while the foreign company directs day-to-day work and assignments.

The EOR signs the local employment contract with the worker, calculates and withholds income tax, remits employer and employee social security contributions to EFKA, administers statutory benefits and leave entitlements, and maintains compliance with Greek labour law requirements.

Foreign employers choose this model to enter Greece quickly and reduce compliance complexity without incorporating locally.

Hiring Contractors in Greece

Companies commonly engage independent contractors in Greece for temporary, project-based, or highly specialised work requiring greater autonomy.

Contractors operate under civil law contracts for services, manage their own tax registration and social security, and typically work for multiple clients.

Misclassifying an employee as a contractor, particularly where fixed hours, close supervision, and economic dependence on one client exist, can result in reclassification by authorities, back-dated social contributions, and retroactive employment entitlements.

What Are the Legal Requirements for Hiring in Greece?

Greek employment relationships are governed primarily by national labour legislation, including the Greek Labour Code and reforms introduced by Law 4808/2021, alongside EU regulations and applicable collective agreements.

Core employer obligations include:

• Written employment contracts or written statements of terms are required before work starts
• Employers must register with e-EFKA and notify new hires to ERGANI via the E3 form before the employee's first day
• Employers must withhold income tax and pay employer and employee social security contributions to EFKA
• Employees are entitled to paid annual leave, public holidays, minimum wage protections, and dismissal safeguards

Employers must manage contracts, tax registrations, and social contributions before running any payroll in Greece.

Employees are protected by working time limits under Law 4808/2021, a minimum of around 20 working days of annual leave per year (increasing with service length), and statutory dismissal procedures. Health and safety obligations also apply to all employers regardless of size.

Non-compliance with Greek labour and tax rules can trigger administrative fines from the Labour Inspectorate, interest charges, and employment disputes.

Employment Contracts in Greece

Written employment contracts or, at a minimum, written statements of employment terms are essential for legal compliance and for clearly documenting the rights and obligations of both employer and employee.

Contract terms must align with Greek labour law requirements and cannot derogate to the employee's detriment from statutory minimums on pay, leave, or working conditions.

Types of Employment Contracts

Greek law recognises three main employment contract types, each subject to specific rules on duration, termination, and working conditions.

Under Law 4808/2021, probationary periods for indefinite-term contracts can last up to 12 months, during which performance can be assessed before full dismissal protections apply.

What to Include in an Offer Letter When Hiring Employees in Greece

Offer letters summarise the proposed employment arrangement and are used by employers before the formal contract is signed.

Key elements to include:

• Job title and primary responsibilities
• Compensation structure, including base salary, bonuses, and any allowances
• Working hours, workplace location, and remote or hybrid arrangements
• Benefits overview and reporting manager
• Proposed start date

Including these details clearly reduces misunderstandings about role expectations and compensation and creates a documented foundation that aligns with the later formal contract.

NDAs and Confidentiality Agreements

Greek employers use NDAs and confidentiality agreements to protect trade secrets, customer data, pricing strategies, and other sensitive business information shared with employees or third parties.

These agreements extend confidentiality protection beyond the implied duty of loyalty in employment, covering intellectual property, business strategies, and proprietary processes.

NDAs must comply with Greek and EU law, including restrictions on overly broad or indefinitely framed clauses, and must respect employees' fundamental rights to remain enforceable.

Employee Compensation, Payroll, Taxes, and Benefits in Greece

Understanding salary structure, statutory bonus obligations, payroll tax withholding, social security contributions, and statutory benefits is essential before making the first hire in Greece. Greek payroll is more complex than a standard monthly salary cycle, with legally mandated additional payments and detailed contribution rules.

Payroll and Salary Structure in Greece

Salaries in Greece are typically expressed as a gross annual amount divided into 14 instalments, 12 monthly payments plus Christmas, Easter, and vacation bonuses mandated by Greek labour law.

Employer payroll calculates gross pay, applies statutory deductions including income tax withholding and social security contributions, and transfers net pay to the employee's bank account.

• Salaries are most commonly quoted on a monthly or annual gross basis with a 14-payment structure
• Bank transfer is the standard and legally preferred payment method for employee salaries

Employer Payroll Obligations

Employers must register with e-EFKA before running payroll and are responsible for calculating and withholding personal income tax from employee salaries, remitting it to the Greek tax authority.

Employers pay social security contributions on employee salaries, withhold the employee share, and submit combined monthly declarations aligned with the payroll cycle.

Employee Tax Contributions

Greece applies a progressive personal income tax system to employment income, with rates ranging from 9 per cent to 44 per cent across income brackets under Law 5246/2025, not a flat rate.

Employee social security contributions are deducted from gross salary at source by the employer and reduce the employee's net take-home pay.

• Greece uses a progressive income tax system with multiple brackets, not a flat rate
• Employee social security and tax deductions reduce the net salary significantly

Social Security Contributions

Employers and employees both contribute to social security based on employment income, with the combined rate around 35 per cent of gross salary. Employer contributions are generally higher than the employee share.

Social security funds provide pension entitlements, healthcare coverage, unemployment benefits, and other statutory insurance programs for employees throughout the employment relationship.

Minimum Wage and Statutory Pay Requirements

Greece sets a national statutory minimum wage by ministerial decision, adjusted periodically. A government announcement confirmed an increase to around 920 euros per month for full-time workers from April 2026.

Overtime work and work on Sundays or public holidays attract premium rates above the standard hourly wage under Greek labour law, with some sources noting premiums at 115 per cent or higher of the regular rate.

• Employers must pay at least the applicable national minimum wage for full-time work
• Over time, Sunday work and public holiday work require additional statutory premium payments

How Employers Pay Employees in Greece

Payment Methods

Bank transfer is the standard method for paying employee salaries in Greece, strongly favoured by labour law and payroll practice.

Employers must maintain accurate payment records to comply with labour authority and tax requirements.

Salary Payment Frequency

Employees in Greece are paid monthly, which is the standard payroll cycle across the private sector.

Most employers follow a predictable monthly pay schedule, but budgeting must account for statutory 13th and 14th salary payments made at Christmas (one full month), Easter (half month), and during the summer vacation period (half month), which form part of the contracted annual compensation.

How to Onboard Employees in Greece

Structured onboarding ensures all legal formalities are completed before work starts and supports early employee retention. Missing compliance steps, particularly ERGANI registration, can result in penalties for undeclared work.

New Hire Onboarding Checklist

Employers should complete the following before or on the employee's start date:

• Sign the employment contract and obtain written acceptance of terms
• File the ERGANI E3 recruitment notification before the employee's first day
• Register the employee with e-EFKA and set up payroll and tax withholding
• Provide equipment and configure system access before Day 1
• Share internal policies, employee handbook, and required training materials
• Introduce the reporting manager and schedule early check-ins

Completing these steps before the start date reduces the risk of ERGANI or EFKA registration violations and creates a more structured, compliant first experience for new hires entering the Greek workforce.

Required Employee Documentation

Employers must collect the following documentation from every new hire in Greece:

• Government-issued identification or passport
• Greek Tax Identification Number (AFM) for payroll and tax purposes
• Social security number for EFKA registration
• Bank account details for salary payments
• Valid residence and work permit if the employee is a non-EU national

All employee documentation must be stored securely and processed in compliance with Greek data protection law (Law 4624/2019) and the EU GDPR.

Interviewing and Hiring Best Practices in Greece

Fair, compliant, and transparent hiring practices protect employers from discrimination claims and data protection violations under Greek and EU law.

• Avoid questions that directly or indirectly elicit information about protected characteristics such as health, religion, political beliefs, or trade union membership
• Clearly explain the recruitment process, stages, and expected decision timelines to every candidate
• Communicate outcomes and next steps promptly to maintain a professional candidate experience
• Collect and store candidate personal data lawfully, transparently, and securely in line with GDPR and Greek Law 4624/2019

Candidates in Greece, as across Europe, expect structured interviews, clear communication of role requirements, and a professional recruitment process that respects their time and privacy.

Employers must follow Greek and EU anti-discrimination law and data protection requirements throughout recruitment, from job posting through final selection.

Work Permits and Right to Work in Greece

The key distinction in Greek hiring is between EU citizens, who have the right to work freely in Greece, and non-EU nationals, who require specific work authorisation before employment can begin.

EU citizens can move and reside freely in Greece under EU freedom of movement rules and can work without a work permit, though residence registration is required for stays beyond three months.

Requirements for non-EU employees include:

• A national visa and residence permit authorising employment in Greece
• Employer sponsorship of the work permit application in many cases
• Additional supporting documents, including job offer, salary evidence, and qualification records

Non-EU nationals must hold a valid residence permit with explicit work authorisation under Law 4251/2014. Employers must verify permit validity before employment begins and retain documentation as part of the employment record.

Employers are responsible for monitoring work authorisation expiry dates and ensuring renewals are completed before existing permits lapse.

Termination of Employment in Greece

Greek termination law is detailed and structured, with prescribed grounds, formalities, notice periods, and severance obligations. Non-compliance creates significant litigation risk.

Lawful Grounds for Termination

Lawful grounds for termination in Greece include poor performance, misconduct, redundancy driven by economic or organisational reasons, and business closure.

Performance-based dismissals and redundancies typically require documented justification and adherence to statutory procedures.

Employers must document termination reasons carefully, including performance records, written warnings, and any investigation outcomes, to withstand potential challenges from employees or labour authorities.

Notice Periods

Greek law provides statutory notice periods for terminating indefinite-term contracts, with the required notice period linked to the employee's length of service.

Notice requirements and amounts vary depending on contract type, length of service, and whether termination is with or without advance notice provided.

Immediate termination without notice may be permissible in cases of serious misconduct, such as theft or violence, subject to proper documentation and due process.

Severance Requirements

Greek law requires severance pay for employees on indefinite-term contracts dismissed without serious misconduct, with the amount linked to length of service and salary level.

Severance is generally higher when termination occurs without the statutory notice period, as the additional compensation accounts for the absence of warning.

Incorrect severance calculations are a common source of employee claims and litigation in Greece, making accurate calculation and documentation essential before any dismissal is executed.

Employee vs Contractor Classification in Greece

Correctly classifying workers as employees or independent contractors is a core compliance requirement under Greek labour law.

Misclassification where a contractor is treated as an employee through fixed hours, close supervision, or economic dependence on a single client can result in reclassification by authorities, back-dated social contributions, tax liabilities, and retroactive employment entitlements.

Compliance Risks When Hiring in Greece

International employers most commonly encounter compliance failures in three areas:

• Payroll taxes and social contributions are filed incorrectly or missing ERGANI registration for new hires
• Weak or incomplete written employment contracts that fail to meet Greek statutory requirements
• Misclassified workers and improperly handled terminations, lacking the required notice or severance

These failures can result in administrative fines from the Labour Inspectorate, tax authority penalties, interest charges, and employee complaints or litigation.

Prevention through correct registration, compliant contracts, and accurate worker classification costs significantly less than correcting violations after they occur.

How an Employer of Record Helps You Hire in Greece

An EOR allows companies without a Greek entity to hire employees compliantly by acting as the legal employer while the client directs day-to-day work.

An EOR typically:

• Handles employer and employee payroll tax and social security contributions to EFKA
• Draft locally compliant employment contracts aligned with Greek labour law
• Manages statutory benefits, leave entitlements, and onboarding formalities, including ERGANI filing
• Reduces multi-obligation compliance risk across registration, payroll, and employment governance

EOR arrangements allow companies to hire in Greece faster and with less legal exposure than entity incorporation, particularly for early-stage market entry or distributed team hiring.

This model works best for international companies entering Greece for the first time or scaling across multiple European markets simultaneously.

Why Use Gloroots to Hire Employees in Greece

Gloroots is a global hiring and employment platform that acts as an Employer of Record across 140+ countries, enabling companies to employ workers in Greece without forming a local entity.

Gloroots provides:

• Local payroll and compliance expertise aligned with Greek labour law and EFKA requirements
• End-to-end hiring support from contract generation through employment lifecycle management
• Fast onboarding with contracts and ERGANI-compliant documentation prepared efficiently
• Scalable employment infrastructure for international teams growing across multiple countries

Gloroots helps companies run employment in Greece with control and predictability, reducing legal complexity and administrative overhead while maintaining centralised visibility across payroll, compliance, and headcount.

FAQs About Hiring Employees in Greece

Can a foreign company hire employees in Greece without setting up a local entity?

Yes. Foreign companies can hire employees in Greece through an Employer of Record without incorporating locally. The EOR registers as the employer, manages ERGANI and EFKA obligations, runs compliant payroll, and ensures Greek labour law compliance. Setting up a local entity becomes more practical for companies planning long-term, large-scale Greek operations or those requiring direct control over employment policies and immigration sponsorship.

What are the legal requirements for hiring employees in Greece?

Key requirements include employer registration with e-EFKA, ERGANI E3 notification before the employee's first day, written employment contracts aligned with Greek labour law, and correct payroll tax withholding. Employers must also comply with minimum wage rules, working time regulations under Law 4808/2021, anti-discrimination obligations, data protection law, and statutory leave entitlements. Failure to meet these requirements can result in fines from the Labour Inspectorate and employment disputes.

What taxes and social security contributions do employers pay in Greece?

Employers in Greece contribute to social security on employee salaries, with the combined employer and employee social security rate around 35 per cent of gross salary. Employer contributions cover pension, healthcare, and unemployment programs. Employers also withhold personal income tax from employee salaries under a progressive system with rates from 9 per cent to 44 per cent and remit both taxes and contributions to the relevant Greek authorities every month.

How long does it take to hire and onboard an employee in Greece?

The timeline depends on the hiring method and documentation readiness. EOR providers report onboarding employees in Greece within days to a few weeks once documentation is complete. For non-EU nationals, obtaining a national visa and residence permit adds significant time. Entity setup for direct employment takes considerably longer. ERGANI and EFKA registrations must be completed before the employee's first day, regardless of method.

What is the easiest way to hire employees in Greece compliantly?

For international companies without a Greek entity, using an Employer of Record is the most straightforward compliant hiring method. The EOR manages ERGANI notifications, EFKA registration, payroll tax obligations, employment contracts, and statutory benefits, removing the need to build local HR and legal infrastructure. EOR providers can typically onboard Greek employees within days, compared with the months required for entity incorporation and employer registration.