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Minimum wage in Greece
Payroll in Greece
Statutory benefits in Greece
Other employee benefits in Greece
Payroll and benefits in Greece
Before employing workers in Greece, it’s essential for employers to understand the country’s payroll obligations. Greek employers are responsible for withholding taxes and social security contributions from employees’ wages and remitting them to the appropriate authorities. Payments to employees are typically made monthly and must be in the local currency, the euro (EUR).
This section will cover the statutory minimum wage, income tax rates, social security contributions, and mandatory benefits that all employees are entitled to. We’ll also discuss other benefits that Greek employers can choose to offer to enhance their employee value proposition. Understanding these aspects of benefits and payroll in Greece will help ensure compliance with Greek labour laws and contribute to a positive employment experience for your team.
Minimum wage in Greece
The minimum wage in Greece is set by government decree and applies across the private and public sectors. It serves as a foundational benchmark for wages, influencing various employment benefits and allowances. Adjustments to the minimum wage are made periodically, taking into account economic indicators and consultations with social partners.
Historically, Greek employment law distinguished between white-collar and blue-collar workers when setting minimum wages. However, the current minimum wage is set uniformly across all sectors and job types.
Minimum wage in Greece in 2025
As of April 1, 2025, the statutory minimum wage in Greece is set at EUR 880 per month or EUR 39.30 per day. These rates apply universally across sectors.
Seniority-based wage increments in Greece
Employees in Greece with relevant work experience are entitled to seniority increments. Specifically, the minimum wage increases by 10% after three years of service, up to a maximum of 30% after nine years. For example, an employee with nine years of experience would earn EUR 1,144 monthly. If the employee is married, they can access a further 10% increase due to a marriage allowance.
What counts towards minimum wage in Greece?
The minimum wage in Greece is defined as a single reference amount, excluding additional benefits and allowances. Bonuses, overtime pay, holiday allowances, and other benefits are calculated separately and do not count towards the minimum wage.
Minimum wage in Greece after tax
The minimum wage in Greece is the gross total an employee is entitled to receive before taxes and social security charges are deducted. Employees must pay income tax, which is charged on a progressive scale with rates from 9% to 44%, and social security contributions, which are charged at 6.67% of gross salary.
Minimum wage in Greece for young workers
There is no distinct minimum wage for young workers in Greece. All employees, regardless of age, are entitled to the standard minimum wage. However, younger employees may not yet qualify for seniority increments, which are based on years of service.
Payroll in Greece
The payroll cycle in Greece is generally monthly, with salary payments made towards the end of the month. The Greek tax year is the same as the calendar year, and the local currency is the euro (EUR).
Income tax in Greece
Employees in Greece are obliged to pay income taxes on their wages from employment, which must be withheld and remitted by their employers. Taxes are charged on a progressive scale with rates depending on income level, as follows:
- Up to EUR 10,000: 9%.
- EUR 10,001–20,000: 22%.
- EUR 20,001–30,000: 28%.
- EUR 30,001–40,000: 36%.
- EUR 40,001 and above: 44%.
A personal tax allowance is available to employees earning less than EUR 12,000 per year. Greek tax residents pay taxes on their worldwide income, while non-residents are only taxed on income earned in Greece. Individuals who spend more than 183 days per year in Greece are considered tax residents.
Social security contributions in Greece
In Greece, social security contributions are due on salary and benefits in cash or in kind granted to employees by an employer. As of 1 January 2025, the social security contribution rate is:
- 21.79% for the employer.
- 13.37% for the employee.
Together, these contributions pay for things like pensions, sick leave, and health insurance. Employers must remit both employer and employee contributions to the Unified Social Security Fund (e-EFKA) by the last working day of the month following the month in which they were collected.
13th and 14th salaries in Greece
Greek labour law mandates the payment of a 13th and 14th salary instalment. Employees receive a payment equivalent to a full month’s salary at Christmas, and half a month each at Easter and during the summer. These must be paid in cash and cannot be replaced by benefits.
Other requirements for running payroll in Greece
Employers in Greece are required to submit an Analytical Periodic Declaration (APD) to the Unified Social Security Fund (e-EFKA) each month. This report details employee earnings and corresponding social security contributions. Employers must also report all new hires and terminations to the Ergani Information System.
In Greece, employers are required to keep comprehensive payroll records, including payslips, employment contracts, and tax filings. These records should be retained for a minimum of five years to comply with audit and inspection requirements. Employees should receive an electronic or physical payslip at the end of each payroll run, detailing their gross remuneration, deductions, and net pay.
Statutory benefits in Greece
Employees in Greece are entitled to various statutory benefits under Greek labour laws. Some of these must be provided by the employer directly, while others are funded through the social security system. Here are some of the most important statutory benefits in Greece.
Annual leave in Greece
All employees in Greece are entitled to at least 20 working days of annual leave if they work a five-day week, and 24 working days if they work a six-day week. Employees are granted an additional day of leave in the second and third year of employment, taking the total entitlement to 22 days of leave. After 10 years of employment with the same employer or 12 years of employment generally, employees are entitled to 25 days of leave (30 days if they have a six-day working week).
Sick leave in Greece
Employees are entitled to paid sick leave, with the duration depending on their length of service. For example, employees with up to four years of employment are entitled to one month of sick leave, while those with more than 15 years are entitled to six months. The employer covers the first three days. After this point, the employee can receive benefits through the social security system.
Severance pay in Greece
Employees in Greece have the right to a lump-sum payment in the case of termination of the employment contract by the employer. The amount depends on the length of employment and the reason for termination. These payments are funded through regular employee contributions to the severance fund.
Pensions in Greece
Employees in Greece have the right to receive a pension when they retire, funded by contributions from both employers and employees. The national pension is a flat-rate amount financed by the state budget, which requires 20 years of contributions and 40 years of residence in Greece. There is also:
- A contributory pension based on years of insurance and pensionable income.
- A supplementary pension based on a defined contribution system.
Healthcare benefits in Greece
Employees are entitled to healthcare for both themselves and their immediate family, paid for through contributions to the Unified Social Security Fund (EFKA) by both the employer and the employee. The employer’s portion amounts to 4.3% of the employee’s gross salary.
Disability benefits in Greece
Employees can also benefit from a lump-sum payment in the case of illness, injury, or death of the employee or their dependents. Again, this is funded through contributions to the social security system.
Unemployment benefits in Greece
Individuals who are temporarily unemployed in Greece can receive unemployment benefits through the social security system. This is a monthly payment payable for a maximum of 12 months, depending on how long the worker was previously employed and the reason for unemployment.
Other employee benefits in Greece
Compliant, seamless payroll and benefits in Greece and beyond
Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.
Thankfully, we know what we’re doing. When you work with CXC to engage workers in Greece, we’ll handle everything from tax withholding to employee bonuses on your behalf.
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