Payroll & Employee Benefits in Greece

Employers in Greece must budget for more than twelve monthly salaries. Greek law requires Christmas and Easter bonuses, an annual leave allowance, paid annual leave and employer social insurance contributions. Sectoral collective agreements can increase the minimum remuneration and benefits payable to particular employees.

The rules changed in 2026. The statutory minimum monthly wage rose to €920 on 1 April 2026, new income tax bands took effect for the 2026 tax year, and Greece expanded the rules supporting collective bargaining. Employers must apply these obligations alongside e-EFKA contributions and the employment-reporting requirements of ERGANI II.

How Payroll Works in Greece

Greek employers calculate gross remuneration, deduct employee social insurance and income tax, account for statutory bonuses and pay employer contributions. The Independent Authority for Public Revenue (AADE) administers tax withholding and reporting; the Electronic National Social Security Fund (e-EFKA) administers insurance contributions; and ERGANI II handles digital employment declarations.

Payroll needs to reflect the agreed working pattern, overtime, absences and applicable collective agreement, not just the headline salary. These requirements sit alongside the wider employment obligations explained in our Global HR Compliance in Greece guide.

Minimum Wage in Greece in 2026

Ministerial Decision 8934/27 March 2026, published in Government Gazette B’ 1759, raised the national minimum salary from €880 to €920 per month from 1 April 2026. The minimum daily wage for manual workers rose to €41.09. These are gross amounts for full-time employment.

Statutory seniority increments also require attention. Under Article 33(3) of Law 5053/2023, qualifying service before 14 February 2012 and from 1 January 2024 counts towards increments: 10% per completed three-year period for salaried workers, up to three periods, and 5% per period for manual workers, up to six periods. An applicable collective agreement may establish higher remuneration.

Fourteen Salary Payments: Christmas, Easter and Leave Allowance

Private-sector Greek payroll commonly involves twelve monthly salaries plus three mandatory allowances equivalent, for a fully qualifying year, to two additional monthly salaries.

The Christmas and Easter bonuses arise under Joint Ministerial Decision 19040/1981, as amended. Employees who do not work throughout the qualifying period receive proportionate amounts. The annual leave allowance is separate from the employee’s ordinary paid leave salary and is subject to its statutory cap.

These payments normally attract applicable tax and social insurance deductions. They also matter when setting offers: a monthly salary of €3,000 ordinarily implies €42,000 in gross remuneration over a full qualifying year, before employer contributions and any extra benefits.

Employer and Employee Social Insurance Contributions

Most private-sector employees contribute to e-EFKA through payroll. For the common insurance category, the standard 2026 rates are 21.79% for the employer and 13.37% for the employee, a combined 35.16%. Rates can differ for specific occupations or insurance arrangements.

The 2026 earnings ceiling applies to the relevant insurable remuneration. Employers should calculate contributions on the components subject to insurance, including statutory bonuses where applicable, rather than assuming that twelve base salaries represent the entire insurable payroll.

Employee Income Tax in Greece: 2026 Rates

Law 5246/2025 introduced revised income tax brackets from the 2026 tax year. The general marginal rates for employment income are:

These are marginal, not flat, rates. Actual payroll withholding also depends on the employee’s circumstances and applicable tax reductions. From 2026, reduced rates apply to certain taxpayers with dependent children, while special concessions apply to younger employees: those aged up to 25 have a zero rate on the first €20,000 under the relevant provisions, and those aged 26–30 benefit from a reduced rate in the second income band.

Employers must use the correct employee tax profile for withholding. The gross salary alone is not sufficient to determine take-home pay.

Collective Bargaining Agreements and Payroll in Greece

Greek employers must check whether a sectoral, occupational or enterprise-level collective agreement applies before fixing salary and benefits. Such agreements can set higher minimum wages, seniority allowances, role classifications, working conditions and supplementary benefits. Hospitality, banking and insurance are among the sectors where negotiated terms have particular practical significance.

Law 5278/2026, published on 16 February 2026, strengthened the reach of collective bargaining. It lowered the coverage threshold for the extension of sectoral agreements from 50% to 40% of employees in the relevant sector and provided a route for extension without that numerical test where the prescribed national organisations are signatories. It also broadened the continuation of normative collective-agreement terms after expiry and the statutory three-month extension period.

Employers should not assume that paying the national €920 minimum is sufficient. Where an applicable agreement requires more favourable pay or conditions, the employer must apply those terms. Our article on collective bargaining agreements in global employment explains why negotiated labour standards can materially change international employment costs.

Statutory Employee Benefits in Greece

Annual paid leave and leave allowance

Paid annual leave accrues from the start of employment. Under the statutory framework, entitlement begins on a pro-rata basis equivalent to 20 working days for a five-day week or 24 days for a six-day week over a full year. Entitlement subsequently increases with service, reaching 22 days for a five-day week or 26 days for a six-day week under the ordinary progression; longer-service rules can provide additional days. Employers also pay the separate annual leave allowance, generally capped at half a monthly salary for monthly-paid staff.

Public holidays and working-time payments

Greece recognises mandatory public holidays, including 25 March, Easter Monday, 1 May, 15 August, 28 October, Christmas Day and 26 December. Pay treatment for work performed on a holiday depends on the legal classification of the holiday, the applicable wage arrangement and any collective agreement. Work on Sundays and public holidays may attract statutory premiums. Employers must also distinguish legally permitted additional hours from overtime, which carries separate approval, recording and premium-pay rules.

Sickness and healthcare

Employees participate in the public social insurance and healthcare system through e-EFKA. Entitlement to sickness-related employer payments and e-EFKA cash benefits depends on length of service, insurance conditions and the circumstances of the absence. Employers must also apply the relevant rules on medical certification and protected leave. Public insurance does not prevent businesses from offering supplementary private health cover.

Maternity, paternity and parental protections

Greek law provides statutory maternity leave, paternity leave and parental rights. The ordinary maternity leave entitlement is 17 weeks, generally divided into eight weeks before and nine weeks after childbirth. Fathers are entitled to 14 working days of paternity leave, subject to the statutory rules. Eligible mothers may also access the special maternity protection benefit administered through DYPA, which extends beyond the core maternity leave period. Parental leave rights are separate and eligibility conditions matter for payment and job protection.

Employers need to distinguish time away from work, statutory wage obligations and state-funded benefits. The wider protections and reporting duties are addressed in Greece’s employment compliance rules.

Termination and severance

Ending employment can create an additional financial liability. Greek rules governing dismissal, notice and severance differ according to the contract, service and circumstances. Employers should also assess outstanding salary, earned bonuses and unused leave when calculating final payroll. A final payslip alone does not establish that a dismissal complies with Greek employment law.

Supplementary Employee Benefits Employers Offer in Greece

Statutory provisions establish the minimum package. Employers competing for experienced professionals may provide supplementary benefits that reflect the role and local market expectations.

Benefits in kind are not automatically tax-free. Their tax treatment depends on Greek Income Tax Code provisions and any available exemptions or thresholds. The same applies to social insurance: the reason for a benefit and how it is provided can determine whether contributions arise. See our discussion of benefits in kind in global employment for the wider compliance implications.

Illustrative Annual Employment Cost in Greece

For an employee earning a base gross monthly salary of €3,000, the statutory bonuses and annual leave allowance add the equivalent of two monthly salaries over a fully qualifying year. Assuming the standard 21.79% employer insurance rate applies to all remuneration in the example:

This calculation excludes benefits above the statutory minimum, collective-agreement supplements, overtime, specific insurance-category adjustments and other employer expenses. It also does not estimate net salary, which depends on the employee’s personal tax circumstances. The broader issues involved in comparing workforce costs are discussed in our employment cost and risk analysis.

Payroll for International Employers Without a Greek Entity

Foreign companies hiring employees in Greece must meet Greek payroll, employment and insurance obligations even when the wider business operates from another country. The appropriate hiring arrangement depends on whether the company has its own Greek employing entity, the nature of the role and the scope of local operations.

Companies that need a locally employed professional without establishing a subsidiary can consider an Employer of Record in Greece. An EOR employs the individual locally and administers payroll and mandatory benefits, while the client directs the employee’s commercial work. Genuine independent professionals can be engaged under contractor arrangements, but the classification must reflect the real working relationship; see Contractor vs Employee in Greece for the relevant legal distinctions.

Frequently Asked Questions About Payroll and Employee Benefits in Greece

Do Greek employees receive 13 or 14 salaries?

Monthly-paid private-sector employees generally receive twelve monthly salaries plus a Christmas bonus equivalent to one monthly salary, an Easter bonus equivalent to half a salary and an annual leave allowance capped at half a salary. Together these are commonly described as fourteen salary payments, assuming full entitlement.

What is the minimum salary in Greece in 2026?

The statutory minimum monthly salary is €920 from 1 April 2026, and the statutory minimum daily wage is €41.09. Qualifying seniority increments and applicable collective agreements can require higher amounts.

What social security contributions must employers pay?

The standard employer rate for common private-sector coverage is 21.79%, with an employee rate of 13.37%. Certain employees and occupations have different rates, and the 2026 monthly insurable earnings ceiling is €7,761.94.

Are private health insurance and meal vouchers mandatory?

They are not generally mandatory benefits for all Greek employees. An applicable collective agreement or employment contract may require particular benefits, and voluntary benefits must comply with tax and social-insurance rules.

Can an international company provide payroll and benefits without a Greek subsidiary?

Yes, an appropriate Employer of Record arrangement can provide local employment and payroll administration without the client setting up its own Greek employing entity. The arrangement must still comply with Greek employment, insurance and reporting requirements.

Payroll and Employee Benefits in Greece with Acumen International

Greek employment costs depend on statutory bonuses, insurance contributions, tax withholding, leave entitlements and any applicable collective agreement. A compliant employment package must reflect all of these obligations from the outset and continue to do so when pay, working arrangements or legislation change.

Acumen International helps international businesses employ and pay staff in Greece through locally compliant Employer of Record arrangements, including employment contracts, payroll administration, mandatory social insurance and employee benefits. Our specialists also help companies assess the employment implications of growing teams and changing workforce requirements across jurisdictions.