Hiring Guide: Key Intel to know before Hiring Greece Employees

With a GDP of 214.87 billion USD in 2021 and witnessing a growth of 5.9% in 2022, Greece has a stable and developed economy primarily based on services. The labor market in Greece is also highly extensive and talented since Greece has one of the highest enrollment rates in tertiary education courses in Europe. All these reasons make Greece a prime location for businesses looking to expand. Regarding employing individuals, Greek laws offer the right conditions for employers to use the resourceful country. 

To know more about how to hire employees in Greece, keep reading. 

Things To Know Before Hiring in Greece

There is a vast talent pool for recruitment and selection in Greece. However, before hiring, keep the following points in mind: 

Employment contract

In Greece, it is not mandatory for employers to prepare employment contracts. Therefore, companies choose to provide written statements to employees. These written documents should be provided within two months of the employee’s joining date and must have the information such as: 

• Identification of employer and employee
• Job description
• Place of work
• Date of commencement
• Working hours
• Annual holidays
• Leave benefits
• Salary and other financial benefits details
• Notice period
• Any other agreement

Working hours

• According to Greek law, employees are not allowed to work more than 48 hours weekly. 
• In most industries, a work week is 40 hours, which can be broken into 8 hours of work every day for five days. 

Rest periods

• Every 24 hours, there should be a provision of 12 hours of continuous rest.
• Employees should be given an uninterrupted break of 24 hours every week. 
• After 6 hours of work, employees are entitled to a minimum of 15 minutes of break. 

Minimum wage

• The minimum wage in Greece is currently set at EUR 831.83 per month (as of February 2023).

Sick leave

• The maximum duration of sick leave depends on an employee’s duration of service in the following way: 

Sick pay

• Employees who have been working for a company for one year get 50% of their usual pay during sick leave. However, employees working for over a year are entitled to their entire month’s salary. 
• The employer covers the first three days of the sick pay, following which the Greece social security scheme pays for it.

Bonus

Employees in Greece get two additional payments each year as bonuses. 

• An extra month of payment on the occasion of Easter
• Half the usual salary before their annual vacation
• Half the usual salary for Christmas

Tax

Social security

Social security contribution covers unemployment insurance, health insurance, pension, and other social insurance. 

• Employers contribute 22.29% of an employee’s salary to social security.
• Employees contribute 13.87% of their salary to social security. 

Annual leave

• 20 days of paid annual leave for employees with five days of work weeks
• 24 days of paid annual leave for employees with six days of work weeks
• Additional one day of leave for each year in service at a company
• After ten years, 25 days of paid annual leave (30 for individuals with six days work weeks)

Maternity leave

• A total of 17 weeks of maternity leave is granted to female employees (eight weeks before the birth of the baby and nine weeks after).
• Employers must pay such employees during the first month of leave.
• Following the first month, the Unified Social Security Fund covers the pay at a rate of 50% of the employee’s usual salary. 
• After the designated maternity leave, employees can opt for an additional leave of six months. During this period, they receive the minimum wage set by Greek laws.
• Instead of additional leave, employees can also opt to reduce their daily working time by an hour for 30 months. 

Parental leave

• Both mothers and fathers are entitled to four months of parental leave each. 
• Social security pays a monthly allowance during the first two months of parental leave. 
• Parents can also get four days of paid parental leave every year for each child they have. 

Public holidays

Additional leave

• Five days of leave for marriage
• Two days of leave in case of the death of a family member
• Education or study leave for employees in service for over a year

Notice period

Severance pay

Dismissed employees with over a year of service and permanent contracts can claim up to 12 months of their salary as severance pay. 

The Cost of Hiring an Employee in Greece

Hiring in Greece has several associated costs, which are as follows:

• Job advertisement costs
• Legal costs
• Traveling costs
• Recruiters costs
• Annual salary and bonus
• Social security contributions
• Training costs

What Does a Company Need to Hire Employees in Greece?

It is pretty simple to set up a business in this country. Following that, companies can start recruitment and selection in Greece. Overall, companies need only two things to operate legally in the country: 

• Greek tax identification number (TIN)
• TAXIS system credentials (treated as the user’s electronic signature)

Once a company has received the credentials mentioned above:

• They can fill out the relevant business form (based on their business structure) and submit it online to be registered in the General Commerce Register (GEMI) and receive a GEMI number. 
• They also receive a tax identification number from AADE, which is the Independent Authority for Public Revenue, and an employee register number. 

For companies wanting to establish a branch or subsidiary in Greece, the requirements are: 

• Company’s articles of association or statutes 
• The decision of the company to open a branch in Greece
• Good standing certificate
• Designation of an authorized person or entity to conduct activities in the branch

After completing either of these processes and receiving the necessary registration numbers, they can start hiring in Greece. 

Various Options For Hiring Employees in Greece

There are two options to hire staff in Greece, which are as follows: 

• Through a legal entity: Companies can go through the process of setting up their business in Greece to hire employees. While it is relatively simple to establish a business in this country legally, it is still considered time and resource-consuming. 
• Through an EOR: An employer of record of EOR performs the tasks of hiring and employee management on behalf of a company. This option is ideal for those who wish to simplify and streamline hiring in Greece.

The Steps to Hiring in Greece

To hire in Greece, the following procedures must be followed:

Step 1: Posting job advertisements

The first step in hiring must be posting job vacancies and welcoming potential candidates to submit their CVs. Employers can use job boards like Kariera, Jobfind.gr, Skywalker.gr, and so on, to post vacancies. 

Step 2: Screening candidates

Once you have received enough CVs, you can screen them individually and shortlist the candidates whose experience will fit best in your advertised positions. You can also arrange telephone interviews at this point and ask a few basic questions. 

Step 3: Conducting interviews

The shortlisted candidates must be called for interviews which can be online or in-person. Employers can use interviews to understand the professional and educational experiences of the candidates better. 

Step 4: Selection and onboarding

The final stage to hire staff in Greece is selecting the best candidates based on their interview performance and concluding all the onboarding procedures. 

Let Multiplier Be Your EOR Platform in Greece

Setting up a business in a foreign country can seem challenging since it is associated with many factors, such as compliance with local labor laws, business culture, and employee expectations. However, with Multiplier, you can easily navigate local guidelines, legalities, etc.
Furthermore, we offer a robust infrastructure to hire the most talented in Greece, payroll management solutions, and easy ways to obtain work permits, all in one platform. Therefore, if you are considering hiring in Greece, think of Multiplier.