Good to know
In Greece, bonus payments include a 13th and 14th salary. Greek employees are officially granted an additional month’s pay during Easter, along with half a month’s salary during the Christmas season and another half-month’s salary during their annual vacation.
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The minimum wage in Greece is 780.00 EUR per month.
Standard Working Hours
The regular workweek consists of 40 hours, with a schedule of 8 hours per day over five days. However, it is possible to extend the workweek to 48 hours with mutual consent between the employer and the employee. The working week Is Monday – Friday.
Any work performed beyond the standard weekly working hours is considered overtime and is governed by employment contracts or collective agreements. When an employee is required to work overtime or during holidays, the maximum allowable hours are capped at 48 hours per week, including the overtime hours, over a period of 4 months.
Employees are entitled to receive 120.00% of their basic salary rate for overtime work and 125.00% for night-time work for the first hour. For the subsequent two hours, the rate is 140% of their salary. Throughout the year, up to 150 overtime hours can be worked by an employee.
In Greece, the payroll cycle typically follows a monthly schedule. Most employers pay their employees on a monthly basis, with salaries paid at the end of each month for the work done during that specific month. Some companies may have variations in their payroll cycles, such as paying their employees bi-monthly or bi-weekly, but the monthly payroll is the most common and widely used in the country.
The 13th and 14th salary in Greece are additional payments made to employees during the year. The 13th salary, often referred to as the “Christmas bonus,” is a mandatory annual payment that amounts to one month’s salary. It is typically paid in December, before Christmas, to help employees with holiday expenses. The 14th salary, known as the “Easter bonus,” is also mandatory and equals one month’s salary.
Paid time off
Employees are entitled to a minimum of 20 days of paid annual leave per year, which may increase with years of service or specific collective agreements.
Sick leave benefits and sick pay in Greece vary according to an employee’s length of service. In the initial year, employees receive sick pay amounting to a maximum of half a month’s salary, whereas those with over a year of service are eligible for up to a full month’s salary during illness.
In the first 3 days of absence due to sickness, employees receive 50% of their regular wages, which is provided by the employer. Starting from the fourth day onward, the Greek Social Insurance Institute (IKA) takes over the compensation.
The amount of annual sick leave entitlement varies based on the length of employment. The breakdown is as follows:
– From 11 days to one year: 15 days
– From 1 year to 4 years: 1 month
– From 4 years to 10 years: 3 months
– From 10 years to 15 years: 4 months
– Over 15 years: 6 months
Pregnant employees are eligible for a maternity leave lasting 119 calendar days. To receive this benefit, the employee must not work during the 56 days before the due date and the 63 days following the child’s birth. During the first month of maternity leave, the employer pays 100% of the employee’s regular salary rate. From the second month onward, both the employer and e-EFKA (the social security organization) jointly pay the benefit at a rate of 50.00% of the regular salary rate, considering the insurance contribution class of the insured person.
Father’s are entitled to 14 working days of paid paternity leave, which must be taken upon the birth of the child.
Termination of Employment
The process of termination varies depending on the employment agreement, collective agreement, type of contract, and the reason for termination. When ending the employment of an individual under an indefinite contract, the employer is required to furnish a written notice of termination, provided that the employee is registered with the Unified Social Security Fund (EFKA).
In Greece, the duration of notice periods is contingent on the length of employment. The breakdown is as follows:
– Between 1 and 2 years of employment: 1 month
– Between 2 and 5 years of employment: 2 months
– Between 5 and 10 years of employment: 3 months
– 10 years or more of employment: 4 months
The duration of the probation period is typically set in the employment contract, but it generally ranges from 1 to 6 months. During this period, either the employer or the employee can terminate the contract with a shorter notice period, often around 3 days.
Non-EU employees planning to work in Greece must obtain a Type D visa before arrival, which allows them to stay for more than 90 days for employment purposes. After arriving in Greece, within 30 days, they must apply for a residence/work permit at the local municipal office or police station. These permits usually have a validity of one year, and renewal should be sought at least 60 days before expiry. For business visitors, a local version of the Schengen C Visa is typically used unless they are visa exempt. The Schengen Area permits a stay of up to 90 days within a 180-day period. Business visits are generally limited to a few days, and the exact duration is determined by Greek authorities on a case-by-case basis.
The standard rate of VAT in Greece is 24%.