Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
650 € per month and 29.04€ per day.
Monthly, usually by the end of the month.
Employees are entitled to 13th and 14th salaries
Full Time employment is considered 40 hours weekly, and 8 hours daily.
Extra Time (Iperergasia): The maximum time per day is 1 hour and is paid at a rate of 120% of the regular salary.
Overtime (Iperoria): The maximum time per day are 2 hours and 120 hours per year. These hours are paid at a rate of 140% of the regular salary. For more than 120 hours per year, an approval from the Greek Labor of Ministry is required.
In Greece, there are mandatory 13th and 14th salaries which includes Easter (half a month’s salary), vacation bonus (half month’s salary) and Christmas (a full month’s salary).
Employees that are working 5 days a week are entitled to a minimum of 20 prorated days of leave per year at a full pay. For each additional year of work, employees are entitled to an additional day of leave up to a total of 22 days. Employees with 10 years of service for the same employer or 12 years of service with any employer, are entitled to 25 days leave per year.
For 25 years of service or more, employees are entitled to 26 days leave. In addition, employees are entitled to an annual leave bonus equal to the pay for leave, with a maximum of half a salary.
7 public holidays and 4 optional holidays.
In case of sick leaves, the employer is obliged to pay the employee: 13 days only in the 1st year and 25 days from the 2nd year onwards. The days are paid by both the employer and the EFKA.
Maternity leave – 119 calendar days. (Only the 1st month is paid by the employer the rest is paid by the EFKA). 56 calendar days should be taken before the childbirth date and the remaining 63 calendar days after the birth.
In addition to the maternity leave, 6-month leave paid the minimum wage by the labour Employment Office (OAED).
Instead of receiving reduced daily working hours mothers may agree with their employers to receive an extra 3.5 months leave paid by the employer.
Fathers are permitted 2 days of paid leave after the birth of their child.
2 days per childbirth paid by the employer.
Marriage leave: 5 working days
Leave for children’s school grading: 4 working days for each child which is not older than 16 years old. This kind of leave may be used by one of the parents.
Bereavement leave: 2 working days for the death of husband/wife, child, parents, brothers.
Elections leave: the duration is relating to the distance between the polling station and the workplace. Generally, is 1 to 3 working days.
Indefinite employment agreement is considered to be employment with a probationary period for the first 12 months of the agreement, which may be terminated during the probationary period without notice and without severance pay, unless otherwise agreed by the parties.
After the first 12 months the employee cannot be terminated without prior written notice from the employer, which will take effect from the day after the employee is notified.
These provisions apply for all forms of dismissals, including collective dismissals for employees that are not workers. Terminating workers doesn’t require any notice.
A fixed-term contract can be terminated bye the employee or the employer before the end date immediately without notice period for a ‘Significant reason’. Significant reason includes events during the employer employee relation which make it impossible to continue the agreement in good faith. If a significant reason exists, the employer is not obliged to pay compensation.
Furthermore, article 40 of law 3986/2011 mentions that a fixed-term employment contract, which includes a term for early termination in accordance with requires severance calculation is automatically converted into an indefinite-term employment contract upon termination.
If the employment relationship is based on a fixed term contract, it can be terminated immediately without notice by either the employee or employer. However, a reason (i.e. breach of contract, failure to comply with the terms of the contract, etc.) is given. If no reason is given, the employee is able to make claim in court and is able to receive compensation for the wages that would have been received until the contract expiry date.
If the employment contract is for an indefinite period, the length of the notice period depends on the length that the employee has been employed:
Number of Years: 1-2 years
Notice Period: 1 month
Number of Years: 2-5 years
Notice Period: 2 months
Number of Years: 5-10 years
Notice Period: 3 months
Number of Years: 10 years+
Notice Period: 4 months
For non-workers with indefinite employment agreement the severance pay is calculated as follows:
Up to 1 year of service – no severance pay required
From one year of service – the severance changes according to the length of service and can be up to 12 months of severance.
24% standard rate.