Greece

Greece is a developed country with an advanced high-income economy. As the largest regional investor in the Balkan region, Greece focuses on the service sector, which comprises 85% of the total economy. Service workers, professionals, technicians, shop and market sales workers are in great demand. Tourism is the most significant sector providing jobs and contributing to Greece's economy.

Major economic hubs:

‍Athens, Thessaloniki, Patras, Heraklion

Skills in demand:

‍Software Engineers, Medical Practitioners, Accountants, Food Processing, Language Teachers, Shipping-Industry Related Skills, Renewable Energy Sector Skills.

Labor laws in Greece follow the basic principle of equal treatment of the employees, and any direct or indirect discrimination is strictly prohibited. Employers planning to hire from Greece need to manage payroll, benefits and compensation, taxes, leaves, and other regulated criteria for their Greek employees.

Employee Contract

Except for some specific cases, it is not mandatory to have an employment contract in writing. The employment details are documented, specifying the employer, employee, tenure, type of employment, and other conditions applicable to the employee during the working term in the organization. The information can be compiled in English and Greek (or any other local language) to ensure transparency and clarity on the terms and conditions.

General Components of Salary Package in Greece

Salaries are one way companies recognize and reward their employees for working hard. Salaries may include both monetary benefits like pay rates, bonuses or profit sharing agreements as well as non-monetary rewards such as health care plans with no deductibles that come straight out of your paycheck every month.

The general components of remuneration in Greece include the following aspects —

Resident Tax Information

Greece has a progressive tax system. Tax rates vary depending on the type of income you have, such as rental or employment related earnings - but all residents are taxed worldwide regardless. The income tax rates on such income are as follows —

The government of Greece additionally introduced real estate taxes that include —

The national income taxes in Greece are progressive. The income taxes is applicable to all  

employees in Greece, that are as follows –

Non-resident individuals are taxed on their income derived in Greece.  

Benefits-in-kind is subject to withholding of taxes.

Social Security

The social security in Greece is extensive and covers

1. Old age benefits (retirement pension)
2. Social solitary allowance
3. Dependents' medical benefits
4. Family allowances
5. Disability benefits (disability pension)
6. Sickness and maternity benefits
7. Work injury benefits
8. Survivors benefits
9. Workers' medical benefits
10. Unemployment insurance
    

The social security contributions that both employers and employees must contribute (as of 2022) towards include —

Statutory Benefits

ll employers must ensure that statutory benefits are provided to employees in Greece.  

The statutory benefits are —  

Social security contributions

All employers must ensure contributions are made to social security. Employers must  make necessary deductions from the employee’s salary and contribute on the employee’s  behalf.

Statutory leaves

As per Greek labor laws, all employers must provide a minimum number of leaves.

Bonuses

As per labor laws in Greece, all employees in the private sector are entitled to Easter,  Christmas, and vacation bonuses.

Fringe Benefits

Employers commonly provide fringe benefits that do not form a part of an employee’s compensation. Fringe benefits are provided to an employee in addition to their regular salary.  

Commonly provided fringe benefits in Greece include –

• Company vehicles
• Housing allowances
• Supplemental insurance
• Transportation stipends
• Gym memberships

Exempt Benefits

All monetary benefits are taxable and subject to withholding of taxes. However, the  exempt benefits include –

• Social security contributions
• Grants and donations

Long-term Incentives

The best way for an employer to show their appreciation of hard work and dedication is through long-term benefits. Employees will often be rewarded with company specific goals, such as stock options or other forms of equity ownership that provide incentives over time horizons greater than one year when they achieve certain performance milestones within the business unit/organization where employed.

Most commonly provided long-term incentives provided to employees in  Greece include —

• Performance-based incentives
• Employee stock options
• Health insurance and dental
• Life insurance
• The long-term incentives must be mentioned in the employment contract and must be  
• agreed upon by both parties.

Termination Process

The employer can terminate the employment contract by giving a notice or paying in lieu of notice. The employee can also terminate the contract by giving notice to the employer.

Notice Period

During the probationary period, the notice period is from 1 to 30 days, and for permanent employees, it ranges from one to four months.

Severance Pay

In Greece, the severance pay depends on the employment term with the company. In case the employer does not give the necessary notice, the pay is doubled.