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Employer of record in Greece: costs, rules and how to hire

Everything you need to know about hiring employees in Greece through an employer of record.

Picture the first Monday of your new Greek hire. Before that person sits down at their desk, you were legally required to file an electronic notification with Greece's ERGANI labour information system, declaring the hire, the agreed working hours, and the employment terms. Not within a week, not on the first payroll run: before work begins. That single procedural reality shapes the entire experience of employing someone in Greece, because ERGANI is not a one-time registration. Every change to hours, every overtime shift, every schedule adjustment requires its own filing, often in advance. Foreign employers used to informal flexibility find this the sharpest adjustment.

The underlying employment relationship is also more structured than many expect. Greece mandates a thirteenth salary payment, requires written employment terms from the outset, and sets employer social contributions at 21.8 percent of gross on top of whatever salary you agree. The average monthly wage runs around €1,978, and the statutory minimum sits at €1,073 per month as of 2026, so you are working within a market that is mid-range by European standards but carries a compliance architecture that is firmly in the high-effort tier. The total tax wedge on labour reaches 39.3 percent, which means the gap between what you pay and what the employee takes home is meaningful and worth modelling carefully before you commit.

Annual leave starts at 20 days, public holidays add up to 9 days under national government figures, and maternity leave runs to 56 weeks. Greece also provides paternity leave of just over 11 weeks. These are not negotiable floors you can substitute with a global policy: Greek law treats them as distinct statutory entitlements, calculated and paid according to local rules.

How should you hire in Greece?

Employer of Record (EOR)
Time to first hire
Days
Upfront cost
None
Ongoing cost
From $99–$699/employee/month
Best when
You want 1–5 hires fast, without a local entity or in-house payroll expertise.
Your own legal entity
Time to first hire
Months
Upfront cost
Incorporation, registrations, local counsel
Ongoing cost
Payroll, accounting, filings, benefits administration
Best when
You are building a long-term team (roughly 10+ employees) and want full control.
Independent contractor
Time to first hire
Immediate
Upfront cost
None
Ongoing cost
Contractor invoices only
Best when
Genuinely project-based, independent work. Misclassifying an employee as a contractor carries real penalties.

Rule of thumb: an EOR wins on speed and simplicity for the first handful of hires; once a team in Greece passes roughly ten people, running your own entity usually starts to win. Treat that as a risk-adjusted rule of thumb rather than a calculation. Registration and accounting are the cheap part; the costs that decide it are payroll software, local employment-law advice, pension administration and the statutory sick-pay and termination exposure you take on directly once you are the employer.

EOR pricing in Greece: providers covering Greece publish base fees from $99 to $699 per employee per month, before statutory employer costs. How EOR pricing works.

Companies that should think carefully before defaulting to an Employer of Record (EOR) here are those planning to hire a team of ten or more people in Greece over a two-to-three year horizon, or those whose Greek operation will involve significant client-facing activity, local contracts, or physical premises. At that scale and visibility, the cost of an EOR fee per head compounds quickly, and the ERGANI compliance infrastructure an EOR provides is something a properly resourced local entity can replicate. Setting up a Greek entity takes roughly three to six months, which is not trivial, but the corporate tax rate is 22 percent and the legal framework, while protective of employees, is well-documented. If you are building something permanent, the entity route deserves a genuine cost comparison rather than a reflexive EOR decision.

For companies hiring one to three people in Greece, testing a market, or moving quickly on a specific role, an EOR is the more practical structure. The ERGANI filing obligations alone, which require pre-hire notification and ongoing schedule declarations, are genuinely difficult to manage without local payroll expertise. An EOR absorbs that operational burden and gets a hire live in three to five days rather than months. In my view, the ERGANI complexity is the single strongest argument for EOR in Greece specifically: it is not just about payroll, it is about real-time labour reporting that has no equivalent in many other European markets. The providers listed below vary in how well they handle Greek-specific filings, so that is worth probing directly before you sign.

On contractors: Greece's employment protection index sits at 2.5 on a zero-to-six scale, which places it in the stricter half of OECD countries. Greek courts and labour inspectors look at the actual working relationship, and a contractor who works fixed hours, uses company equipment, and takes direction from a manager is likely to be treated as an employee regardless of what the contract says. The consequences include back social contributions at the employer rate of 21.8 percent, plus potential fines. If the role involves ongoing, directed work, a contractor arrangement carries real legal exposure here.

Greece employment facts at a glance

Minimum wage (monthly)920 EURNational government · 2026
Employer social contributions21.8% of grossOECD · 2025
Employee social contributions13.4% of grossOECD · 2025
Contribution ceilings (employer)EFKA 7,761.94 EUR/monthPwC Tax Summaries · 2026
Total tax wedge39.3%OECD · 2025
13th salaryMandatoryNational government · 2026
Paid annual leave (minimum)20 daysNational government · 2026
Public holidays (national)9 daysNational government · 2026
Paid maternity leave56 weeksOECD Family Database · 2024
Paid paternity leave11.1 weeksWorld Bank WBL · 2026
Paid parental leave8.7 weeksOECD Family Database · 2024
Average weekly hours actually worked37.8 hoursILOSTAT · 2025
Statutory retirement age62Employ Borderless research · 2024
Trade union membership13.4% of employeesOECD/AIAS ICTWSS · 2020
Collective bargaining coverage13.1% of employeesOECD/AIAS ICTWSS · 2017
Maximum probation period60 daysEmploy Borderless research · 2024
Statutory notice period (employer)30–150 days, by tenureEmploy Borderless research · 2024
Statutory severanceYes, from 2 months of salary per year of service (1–4 years)Employ Borderless research · 2024

Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since.

World Bank WBL measures paid leave available to mothers and fathers, which can include mother-eligible or father-eligible parental leave on top of dedicated maternity or paternity schemes.

Statutory notice in Greece is zero: what you agree in the contract is what applies, per our employer burden ranking.

Average salary in Greece by occupation

Gross monthly earnings of employees per ISCO-08 occupation group, in EUR, from the ILO's official labour statistics. These are the latest published survey figures for Greece(reference year 2025), refreshed automatically when the ILO releases newer data. Survey earnings, not the statutory minimum wage above. Use them to benchmark an offer before an EOR quote turns it into total employer cost.

All occupations1,934$2,185
Managers · ISCO 13,981$4,498
Professionals · ISCO 22,276$2,572
Technicians and associate professionals · ISCO 32,064$2,332
Clerical support workers · ISCO 41,806$2,041
Service and sales workers · ISCO 51,703$1,925
Skilled agricultural, forestry and fishery workers · ISCO 61,379$1,558
Craft and related trades workers · ISCO 71,926$2,176
Plant and machine operators and assemblers · ISCO 81,906$2,154
Elementary occupations · ISCO 91,558$1,760

Source: ILOSTAT, the International Labour Organization's statistics database (average monthly earnings of employees, both sexes), reference year 2025.

What it costs to employ in Greece

Mandatory employer contributionsOECD · 2025
Employer social contributions21.79% · $7,063/yr
Total employer cost on top of gross salary21.79%

Worked example: at the average Greece wage of $32,412/year (OECD, 2025), mandatory employer contributions add $7,063/year, bringing the true cost of employment to $39,475/year, or $3,290/month.

Calculate it for your salary
🇬🇷Greece
EUR
🇬🇷
Greece
Employer cost breakdown · OECD 2025 data
+21.8% overhead
Gross annual salary€50,000
Employer contributions
+ Employer social contributions (21.8%)€10,895
Total employer cost€60,895
What your employee pays (deductions)
Employee social contributions (13.4%)€6,685
− Income tax (est. 12.7%)€6,374
Your employee's estimated take-home€36,941

Based on OECD 2025 aggregate data for a single earner at average wage.

Termination and severance in Greece

Greece requires just cause for termination of permanent employees after the probation period, providing strong employment protection. Employers must provide substantial notice periods and severance pay based on tenure, with both increasing significantly over time. The system emphasizes employee security with mandatory compensation for dismissals without serious misconduct.

Statutory notice period by tenure
TenureEmployer notice
Under 1 years30 days
1–2 years60 days
2–5 years90 days
5–10 years120 days
10+ years150 days
Statutory severance by tenure
TenureSeverance per year of service
1–4 years2 months of salary
4–10 years3 months of salary
10–20 years4 months of salary
20–30 years5 months of salary
30+ years6 months of salary

Source: Employ Borderless research · 2024. Statutory minimums; collective agreements and contracts can set higher terms. During the probation period (up to 60 days) shorter or no notice may apply.

What catches employers out in Greece

Greece has several compliance requirements that are easy to miss if you are applying a standard European hiring template. Each of the points below has caught foreign employers out in practice.

ERGANI pre-hire registration is mandatory and time-sensitive

Every new hire must be registered in the ERGANI electronic system before the employee starts work. This is not a payroll formality: it requires specific forms (including the E3 form for new hires) and is entirely separate from social insurance registration. Late or missing filings trigger administrative fines. Foreign employers who assume that a signed contract and payroll enrolment are sufficient often discover the ERGANI obligation only after the fact.

Source

Overtime and schedule changes must be reported to ERGANI in advance

Greek law does not just set limits on working hours: it requires employers to notify ERGANI of fixed schedules and any changes, including overtime, often before the additional hours are worked. Employers accustomed to recording overtime after the fact and adjusting payroll accordingly will find this system unfamiliar. Allowing informal extra hours without the correct ERGANI filing exposes the employer to fines even if the employee is paid correctly.

Source

Holiday allowance is a separate statutory entitlement, not a PTO policy

Greek employees receive statutory annual leave that increases with service, plus a holiday allowance paid on top of normal salary. These are distinct legal entitlements with prescribed calculation methods and timing. A global PTO policy cannot substitute for them. Foreign employers who try to roll everything into a single leave allowance typically find themselves non-compliant with both the leave days and the allowance payment.

Source

Hiring without a Greek entity creates permanent establishment and reclassification risk

Greek law does not contain an outright prohibition on a foreign company employing someone in Greece directly, but doing so creates real exposure in employment, tax, and social security law. Greek practice expects a local employer presence capable of meeting ERGANI, social insurance, and payroll obligations. A foreign-law contract alone is not sufficient, and the arrangement may be treated as creating a de facto permanent establishment.

Source

Changing employment terms unilaterally is legally risky

Greek law requires employers to provide written employment terms at the outset and makes it difficult to change essential terms, such as hours, place of work, or pay, without employee consent. In many cases, changes also require a prior ERGANI notification. Foreign employers used to broad managerial discretion over role scope and working arrangements are often surprised to find that unilateral changes can be invalid and expose them to employee claims.

Source

Your next step

39 EOR providers can employ for you in Greece. Compare them independently, or tell us about your hire and get a shortlist matched to your situation.

Common questions about hiring in Greece

What does it cost an employer to hire someone in Greece on top of gross salary?
Employer social contributions run at 21.8 percent of gross salary, and the total tax wedge on labour reaches 39.3 percent. You should also budget for the mandatory thirteenth salary payment, which is an additional month's pay required by law.
Is the thirteenth salary really mandatory in Greece?
Yes. Greek law requires a thirteenth salary payment for all employees. It is not a discretionary bonus or a company policy: it is a statutory entitlement, and failing to pay it exposes the employer to legal claims.
How long does it take to hire someone in Greece through an EOR versus setting up a local entity?
An EOR can have a hire live in three to five days. Establishing your own Greek entity typically takes three to six months, accounting for registration, tax enrolment, and social insurance setup.
What are the notice and severance obligations when terminating a permanent employee in Greece?
Greece requires just cause for termination of permanent employees after the 60-day probation period. Notice periods range from 30 days for employees with under a year of service up to 150 days for those with over ten years, and severance pay is calculated in fixed monthly amounts that increase with tenure. Both obligations apply on top of each other, so termination costs rise significantly with long-serving employees.
What is the minimum wage in Greece?
The statutory minimum wage is €1,073 per month as of 2026, based on both Eurostat and ILOSTAT figures. The average monthly wage across the workforce runs considerably higher, at around €1,978.
How much annual leave are Greek employees entitled to?
The statutory minimum is 20 days of annual leave per year, plus 9 public holidays under national government rules. Employees also receive a separate holiday allowance paid on top of normal salary, which is prescribed by statute and cannot be absorbed into a general PTO policy.
Can a foreign company hire employees in Greece without setting up a local entity?
There is no outright legal prohibition, but doing so creates significant exposure in employment, tax, and social security law, including the risk of being treated as having a permanent establishment in Greece. In practice, meeting ERGANI registration and payroll obligations without a local presence is very difficult, which is why most foreign employers use either a local entity or an EOR.
Can I use a PEO in Greece?

Not in the US sense of the word. A PEO (professional employer organization) is a co-employment model under US law and needs your own local entity; Greece has no equivalent. When a provider offers a "PEO in Greece", it is in practice an employer of record: the provider is the legal employer and you direct the work. That is the route this guide describes. EOR vs PEO explains where the two models differ.