How to Use An Employer of Record in
Greece

Greece requires mandatory employer social security contributions of 24.81% in 2026, split across multiple funds including IKA-ETAM, plus additional obligations under sector-level collective bargaining agreements that are binding even when no union is present. An Employer of Record in Greece becomes the legal employer of your staff, handling all statutory obligations, payroll filings, and contract compliance so you can hire in 10 business days without incorporating a local entity. The EOR removes your exposure to the Greek Labour Inspectorate, which conducts unannounced workplace audits and imposes fines starting at €10,500 for contract violations or missing social security filings.

What Is an Employer of Record in Greece?

An Employer of Record in Greece is a third-party organisation that becomes the legal employer of your staff under Greek law, handling all statutory obligations, payroll, and compliance while you retain full operational control. The EOR issues employment contracts in its name, remits taxes and social contributions to the Greek tax authorities and social security funds, and ensures every hire complies with Greek Labour Law, collective agreements, and data protection rules. You direct the work, set performance goals, and manage day-to-day operations exactly as you would with your own employees.

Greece employment law is governed by Law 4808/2021 and earlier codified provisions under the Labour Code. Every employment relationship must comply with mandatory collective agreements negotiated at national or sector level, which set minimum wage floors, annual leave entitlements, and working hour limits that often exceed statutory minimums. Fixed-term contracts cannot exceed 24 months including renewals without converting to indefinite contracts, and all termination decisions require documented just cause or payment of statutory severance. Employers must also register every hire with ERGANI, the electronic labour inspection system, before the first day of work or face immediate penalties.

The EOR owns the legal employment relationship, meaning it signs the contract, runs payroll in euros, withholds income tax and social contributions, and files all mandatory reports with the Greek tax authority AADE, social security body e-EFKA, and ERGANI. You retain complete control over hiring decisions, job responsibilities, performance management, promotion, and termination requests. The EOR executes those decisions in compliance with Greek law, ensuring every step meets statutory deadlines and procedural requirements.

How Does an Employer of Record Work in Greece?

When you hire through an Employer of Record in Greece, the EOR takes on the legal employer role under Greek law while you manage the employee's work and performance. The process follows a structured sequence that ensures compliance with Greek Labour Law, collective agreement obligations, social security registration, and tax withholding from day one. Here is how it works step by step.

Step 1: Define Role and Terms

You provide the EOR with the job title, salary, location, and proposed start date. The EOR checks which collective agreement applies to the role based on sector and occupation, because Greece has binding national and sector-level agreements that set minimum wage floors, overtime rates, and annual leave entitlements. If the role falls under a sector agreement, the contract must meet or exceed those terms even if the employee is not unionised. The EOR confirms that your proposed salary and benefits package complies with the applicable collective agreement and statutory minimums before drafting the contract.

Step 2: Compliance Check

The EOR verifies that the employment terms meet Greece's 2026 statutory requirements. The gross monthly minimum wage is €913.43 for full-time employees, set by ministerial decision and adjusted annually. Standard working time is capped at 40 hours per week and 8 hours per day under Law 4808/2021, with overtime requiring premium pay at 120% for the first 120 hours per year and higher rates beyond that. The EOR also confirms the correct employee classification, whether indefinite, fixed-term under the 24-month limit, or part-time, because misclassification triggers automatic conversion to indefinite status and exposes the employer to back pay and fines.

Step 3: Employment Contract

The EOR prepares a written employment contract in Greek, which is mandatory under Greek Labour Law for all hires. The contract must specify the employer name, workplace address, job title and duties, start date, salary and payment frequency, working hours and schedule, duration if fixed-term with justification, applicable collective agreement, probation period if any, and notice periods. Fixed-term contracts require objective justification such as seasonal work or project-based need and cannot exceed 24 consecutive months including renewals without converting to indefinite. Probation periods are typically one month for non-managerial roles and can extend to 12 months for managerial positions under collective agreements, but must be explicitly stated in the contract. The EOR issues the contract in its name as the legal employer, and the employee signs electronically or in hard copy.

Step 4: Government Registrations

Before the employee's first working day, the EOR submits the mandatory ERGANI notification to the Greek Labour Inspectorate. ERGANI is the electronic system that tracks all employment relationships in Greece, and employers must register every new hire at least 24 hours before work commences or face penalties starting at €10,500. The EOR also registers the employee with e-EFKA, the unified social security fund, to activate health insurance, pension contributions, and unemployment coverage. Late or missing registrations result in automatic fines, denial of social security coverage, and potential suspension of business operations during Labour Inspectorate audits.

Step 5: Payroll in Local Currency

The EOR processes payroll in euros on a monthly cycle, which is standard practice in Greece. Gross salary is subject to progressive income tax withholding under the Greek Tax Code, with 2026 rates ranging from 9% on income up to €10,000 to 44% on income exceeding €40,000. The EOR withholds income tax and the employee's social security contributions, currently 15.99% of gross salary covering pension, health, and unemployment insurance. The EOR remits income tax to the AADE tax authority by the 20th of the following month and remits both employer and employee social contributions to e-EFKA by the last working day of the month. The EOR issues a compliant Greek payslip showing gross pay, all deductions, net pay, and employer contributions.

Step 6: Ongoing Compliance

The EOR manages all recurring statutory obligations throughout the employment relationship. This includes filing monthly payroll summaries and social contribution returns with e-EFKA, submitting quarterly and annual income tax reports to AADE, maintaining up-to-date employment records in ERGANI whenever contract terms change, and ensuring compliance with working time limits and mandatory rest periods under Law 4808/2021. The EOR monitors changes to national and sector collective agreements, which are negotiated annually and published in the Government Gazette, and adjusts salary and benefits when new agreement terms take effect. The EOR also ensures adherence to the Greek GDPR implementation law (Law 4624/2019), managing employee data processing agreements and data subject rights.

Step 7: Termination

Greek law requires just cause for dismissal or payment of statutory severance to avoid unfair dismissal claims. Just cause includes serious misconduct, repeated performance failures after written warnings, or business restructuring with documented economic necessity. Notice periods depend on tenure and are set by collective agreements, typically ranging from one month for employees with under one year of service to four months for those with over 10 years. Severance is mandatory for terminations without just cause and is calculated at half a month's salary per year of service for the first four years, plus one month's salary per year thereafter, capped at 24 months of salary under Law 4808/2021. The EOR calculates the severance amount, issues the termination letter, files the mandatory ERGANI termination notice, processes final pay including accrued leave, and manages any employee disputes or Labour Inspectorate inquiries. Failure to follow proper termination procedures exposes the employer to reinstatement orders, damages claims, and fines for non-compliance.

Employment Laws and Compliance an Employer of Record Handles in Greece

When you hire through an Employer of Record in Greece, the EOR assumes full legal responsibility for employment compliance, so you do not need to build an in-country HR team or legal function. The EOR ensures every aspect of the employment relationship meets Greek Labour Law, collective agreement obligations, and government filing requirements.

• Employment Contracts: Every hire requires a written contract in Greek under Greek Labour Law, specifying job title, salary, working hours, duration, applicable collective agreement, and notice periods. The EOR drafts, issues, and stores all contracts in compliance with Law 4808/2021 and ensures fixed-term contracts do not exceed 24 months without conversion to indefinite status. Missing or non-compliant contracts trigger fines starting at €10,500 from the Greek Labour Inspectorate.
• Income Tax Withholding: The EOR withholds progressive income tax from gross salary at 2026 rates ranging from 9% to 44%, files monthly returns with the AADE tax authority, and remits withheld tax by the 20th of the following month. Failure to withhold or remit on time results in penalties, interest charges, and personal liability for the legal employer.
• Social Security Contributions: The EOR registers every employee with e-EFKA, the unified social security fund, and calculates employer contributions at 24.81% and employee contributions at 15.99% of gross salary in 2026. Contributions cover pension, health insurance, and unemployment insurance and must be remitted by the last working day of each month. Late or missing payments result in automatic penalties, loss of employee coverage, and exclusion from public procurement tenders.
• Statutory Leave: Employees are entitled to a minimum of 20 working days of paid annual leave under Greek Labour Law, rising to 22 days after one year and 25 days after 10 years. Many sector collective agreements provide more generous entitlements. The EOR tracks accrual, approves leave requests in coordination with your management, and ensures leave balances comply with statutory and contractual minimums. Denying statutory leave or failing to pay accrued leave on termination exposes the employer to damages claims.
• Termination and Severance: Greek law requires just cause for dismissal or payment of statutory severance, which is calculated at half a month's salary per year for the first four years plus one month per year thereafter, capped at 24 months under Law 4808/2021. The EOR manages the entire termination process, calculates severance, issues compliant termination letters, files the mandatory ERGANI notice, and defends against unfair dismissal claims. Improper termination results in reinstatement orders, damages equal to up to 12 months of salary, and Labour Inspectorate sanctions.
• Working Time Limits: Law 4808/2021 caps standard working time at 40 hours per week and 8 hours per day, with overtime requiring premium pay at 120% for the first 120 hours per year and higher rates beyond. The EOR tracks working hours, ensures overtime is properly authorised and paid, and maintains time records for Labour Inspectorate audits. Violations result in fines starting at €10,500 and back pay claims.
• Health and Safety: Employers must assess workplace risks, provide safety training, appoint a safety officer for workplaces with over 50 employees, and maintain accident logs under Law 3850/2010. The EOR coordinates with your local operations to ensure compliance with Greek health and safety regulations, manages safety documentation, and responds to inspections by the Labour Inspectorate. Non-compliance results in fines, work stoppages, and criminal liability in case of serious accidents.
• Data Protection and Privacy: Greece implements the GDPR through Law 4624/2019, requiring lawful basis for processing employee data, employee consent for sensitive data, data processing agreements with third parties, and response to data subject access requests. The EOR acts as data controller or joint controller for employee data, maintains GDPR-compliant data processing records, and ensures all payroll and HR systems meet Greek Data Protection Authority requirements. Violations result in fines up to €20 million or 4% of global turnover.
• Collective Agreement Compliance: Greece has binding national and sector-level collective agreements that set minimum wage floors, overtime rates, annual leave, and other benefits that exceed statutory minimums. The EOR identifies which agreement applies to each role, ensures employment terms meet or exceed collective agreement standards, and adjusts contracts when new agreements are published in the Government Gazette. Failure to comply with collective agreements results in back pay claims, fines, and potential criminal sanctions for underpayment.
• ERGANI Electronic Notifications: The ERGANI system requires employers to notify the Greek Labour Inspectorate of every hire, contract change, and termination. New hires must be registered at least 24 hours before the first day of work, and terminations must be reported within 5 business days. The EOR submits all ERGANI notifications on time and maintains the electronic employment record. Missing or late notifications result in automatic fines starting at €10,500 per violation, and repeated failures can lead to business suspension.

How Much Does It Cost to Use an Employer of Record in Greece?

The total cost of using an Employer of Record in Greece has two components. First, statutory employment costs fixed by Greek law, including employer social security contributions, leave accruals, and other mandatory benefits. Second, the EOR service fee, which covers contract drafting, payroll processing, government filings, compliance monitoring, and ongoing HR support. Playroll's EOR service fee starts from $399 per employee per month and is billed separately from payroll.

Let's look at an example that includes a base salary and the EOR service fee.

The EOR service fee covers all employment administration: drafting Greek-language contracts that comply with Law 4808/2021 and applicable collective agreements, processing monthly payroll in euros, withholding and remitting income tax to AADE and social contributions to e-EFKA, submitting all ERGANI notifications for hires and terminations, managing statutory leave accruals and public holiday entitlements, maintaining GDPR-compliant employee records, and providing ongoing support for contract amendments, terminations, and Labour Inspectorate inquiries.

Employer of Record vs Setting Up an Entity in Greece

The decision between using an Employer of Record and establishing your own legal entity in Greece depends on your hiring scale, timeline, and administrative capacity. Foreign companies typically incorporate a private company (Ιδιωτική Κεφαλαιουχική Εταιρεία or IKE) in Greece, which is the most common limited liability structure. Registration involves appointing a local legal representative, drafting articles of association, depositing minimum share capital of €1, registering with the General Commercial Registry (GEMI), obtaining a tax identification number from AADE, registering with e-EFKA as an employer, and opening a corporate bank account. The process takes 8 to 12 weeks and costs between €3,000 and €6,000 in legal, notary, and registration fees.

For companies hiring fewer than 10 employees in Greece, an Employer of Record is almost always the faster and more cost-effective route.

Playroll also supports your long-term growth through its Global Entity Setup product, which handles entity incorporation and local payroll in 120+ countries, so you can transition from EOR to your own compliant entity in Greece when the time is right, without switching providers or rebuilding your HR processes.

How Long Does It Take to Hire Someone in Greece Through an Employer of Record?

You can hire an employee in Greece through an Employer of Record in 10 to 15 business days from the moment you agree on terms with your candidate.

• Stage 1: Contract preparation and signing (2 to 3 business days): The EOR drafts a Greek-language employment contract that complies with Law 4808/2021 and the applicable national or sector collective agreement. Timing depends on how quickly you provide final job details and approve the draft, and whether the candidate requests any negotiation on contract terms.
• Stage 2: Government registrations (1 to 2 business days): The EOR submits the mandatory ERGANI pre-hire notification to the Greek Labour Inspectorate and registers the employee with e-EFKA to activate social security coverage. Greek law requires ERGANI registration at least 24 hours before the employee's first working day, and failure to file on time triggers automatic fines starting at €10,500.
• Stage 3: Payroll configuration and first cycle (3 to 5 business days): The EOR sets up the employee in its payroll system, configures income tax withholding based on the employee's tax residency and allowances, and calculates employer and employee social security contributions at the 2026 rates. Greece uses monthly payroll cycles, and the first payslip is generated at the end of the employee's first working month.
• Stage 4: Greece-specific requirements (2 to 3 business days): If the role requires occupational health clearance or specific certifications under Greek health and safety law, the EOR coordinates medical examinations or document submission, which can add 2 to 3 business days. This typically applies to roles in construction, manufacturing, or food service and can run in parallel with contract signing if initiated early.

The timeline can extend if the employee does not hold a Greek tax identification number (AFM) and needs to apply for one, which adds 5 to 10 business days, or if the role is covered by a sector collective agreement with specific contract clauses requiring union notification. Delays in candidate document submission, such as proof of identity or tax residency certificates, also push back the start date.

In comparison, incorporating a local IKE entity in Greece and setting up compliant payroll takes 8 to 12 weeks, meaning the Employer of Record route is six to eight times faster.

How Playroll's Employer of Record Process Works in Greece

Playroll handles the entire employment lifecycle in Greece, from contract drafting to payroll and compliance, so you can onboard employees without setting up a local entity.

1. You Define the Role and Terms

You tell Playroll who you want to hire, their job title, salary, location, and proposed start date. Playroll reviews the role against Greece's 2026 statutory minimum wage of €913.43 per month and the applicable national or sector collective agreement to confirm the terms meet all legal and contractual requirements.

2. Playroll Prepares the Employment Contract

Playroll drafts a compliant Greek-language contract in its name as the legal employer, including all mandatory clauses under Law 4808/2021 such as job duties, working hours, applicable collective agreement, and notice periods. The contract specifies probation periods where applicable and ensures fixed-term contracts meet the objective justification requirement and do not exceed the 24-month limit.

3. Employee Onboarded and Payroll Goes Live

Once the contract is signed, Playroll submits the mandatory ERGANI notification to the Greek Labour Inspectorate and registers the employee with e-EFKA for social security coverage. The entire onboarding process takes 10 to 15 business days, and Playroll processes the first monthly payroll in euros with full income tax and social contribution withholding.

4. Playroll Manages Ongoing Compliance

Playroll handles all recurring statutory obligations including monthly payroll, tax and social security filings with AADE and e-EFKA, updates to ERGANI for contract changes, compliance with collective agreement changes published in the Government Gazette, and GDPR-compliant employee data management. If your hiring in Greece grows to the point where a local entity makes sense, Playroll can handle that too through its global entity setup service, so you can transition without switching providers or rebuilding your processes.