Easily manage employment in Greece

Payroll services in Greece

Greece has a developed economy with key industries in tourism, shipping, and agriculture. With specific labor laws and tax regulations, employers in Greece must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Greece

Employers in Greece must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: The national minimum wage in Greece is €920 per month.
• Payroll frequency: Salaries are typically paid monthly, at the end of each calendar month.
• Standard working hours: The standard workweek in Greece is 40 hours, spread over five days.
• Overtime: Employees who work beyond the standard 40-hour week are entitled to overtime pay. The first five hours of weekly overtime are compensated at 120% of the regular hourly rate, with further overtime paid at 140% of the regular hourly rate (applicable for urgent and exceptional activities only).

Taxation and social security contributions

• Personal income tax: Greece operates a progressive income tax system ranging from 9% to 44%, depending on income levels.
• Employer contributions:
• Social security (e-EFKA): 21.79% of the gross salary.
• Employee contributions:
• Social security (e-EFKA): 13.37% of the gross salary.
  
• Corporate tax: The corporate income tax rate in Greece is 22%.
• Tax reporting: Employers must submit payroll tax filings and social security contributions to the Independent Authority for Public Revenue (AADE) and the Unified Social Security Fund (e-EFKA) on a monthly basis.

Payroll compliance in Greece

• Employment contracts: All employees must have a written employment contract. Contracts must be registered with the ERGANI information system before the employee's first working day.
• Payroll deductions: Employers are responsible for deducting and remitting income tax and social security contributions on behalf of employees.
• Compliance with wage laws: Employers must adhere to minimum wage requirements, overtime rules, and any applicable collective bargaining agreements, which may set higher standards than the statutory minimums. Employers should also stay informed about updates to Greek labor law, tax rates, and EU employment regulations to avoid penalties and ensure ongoing compliance.

Run payroll in Greece with Remote

Managing payroll in Greece requires careful attention to social security obligations, tax reporting requirements, and evolving labor legislation. Employers must stay up to date on contribution rates, wage laws, and filing deadlines to ensure smooth payroll processing.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.