Updated on: 2025/08/04 14:03 (UTC)
Overview
Greece, which also is known as the Hellenic Republic, is located in southeast Europe and is a member state of the European Union. Greece is divided into seven decentralized administrations, which are subdivided into 13 regions totaling 325 municipalities, as well as one autonomous area. In addition to its mainland in Europe, Greece includes more than 1,000 islands, the largest and most populous of which is Crete (Kríti), which at its closest point to mainland Greece is about 125 kilometers afar. Most of Greece’s islands are separated from its mainland by the Aegean Sea to the east of Athens, which is the capital city of Greece. The countries that border mainland Greece are Albania, Bulgaria, and North Macedonia to Greece’s north and Turkey to Greece’s east. The Ionian Sea borders mainland Greece to its west, and the broader Mediterranean Sea is to the south of Greece.
The primary spoken and written language used in Greece is the Greek language. The English language is widely used in Greece’s business community.
Greece’s currency is the euro.
Employers in Greece are responsible for withholding and remitting income taxes, social security contributions, an additional solidarity tax from employees, and making additional social security contributions. Employers are also responsible for meeting the minimum compensation and benefits standards set by Greek labor law.
Foreign workers in Greece generally are subject to the same tax and labor regulations as Greek nationals, but must obtain the proper permits to work legally in Greece.
Greek residents working in the United States are covered by U.S. tax law with possible treaty and work status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.
After nearly defaulting on its public debt in 2010, Greece has overhauled much of its fiscal policy to meet the obligations of the European Union’s austerity plan. The reform measures include reduced public pensions, benefits and health expenditures; as well as higher taxes and a reduction in the minimum wage. Fiscal policy changes in Greece are ongoing.
CURRENCY DETAILS
The currency of Greece is the euro (€), which Greece uses because it is part of the euro area, also known as the eurozone, which is a group of countries that adopted the euro as their currency. The European Commission officially recognizes the rendering of the euro currency in Greek as ευρω, with an acute accent mark ( ́) often included over the lowercase letter omega (ω), and with ευρω and its accented variant respectively transliterated as evro and evró. The internationally recognized three-letter currency code for the euro is EUR, which also is one of the currency’s two commonly used currency symbols. The English plural form of euro officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is euros. In Greek, the plural form of ευρω is the same as its singular form, and this also is applicable for the version of ευρω with an acute accent mark ( ́) included over the lowercase letter omega (ω).
When an amount of euro is written using the currency symbol € in accordance with the European Commission’s standard placement treatment of the symbol, which is the placement treatment used for the English language, the symbol precedes the numerical value with no space between the numerical value and symbol. When an amount of euro is written in Greek as used in Greece using the currency symbol €, the symbol follows the numerical value with a space or no space between the numerical value and symbol.
When an amount of euro is written using the currency symbol EUR, the symbol precedes or follows the numerical value with a space or no space between the numerical value and symbol.
One hundredth ( 1 ⁄ 100 ) of a euro is referred to in English as a cent and the English plural form of cent officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is cents. In Greek, one hundredth of a euro is referred to as a λεπτο, with an acute accent mark ( ́) often included over the lowercase letter omicron (ο), and with λεπτο and its accented variant respectively transliterated as lepto and leptó, with Greece’s name for this subdivision also known in English as a lepton. The Greek plural form of λεπτο is λεπτα, with an acute accent mark ( ́) often included over the lowercase letter alpha (α), and with λεπτα and its accented variant respectively transliterated as lepta and leptá.
When amounts of euro are written in Greek, the comma that in English separates the thousands place from the hundreds place instead is rendered as a dot (.), and the dot that in English separates the ones place from the tenths place instead is rendered as a comma.
TAXES
Greek employers are responsible for withholding income taxes, social security contributions, and solidarity tax contributions from their employees and remitting them on a monthly basis. Employers must also make employer mandated social security contributions. Income taxes and solidarity taxes are collected and administered by the Independent Public Revenue Authority, abbreviated as AADE (Ανεξαρτητης Αρχης Δημοσιων Εσοδων, abbreviated as ΑΑΔΕ), while social security is collected and administered by the Unified Social Security Fund, abbreviated as EFKA (Ενιαιος Φορεας Κοινωνικης Ασφαλισης, abbreviated as ΕΦΚΑ).
The tax year in Greece is a calendar year from Jan. 1 to Dec. 31.
Coronavirus (Covid-19) Guidance: The periods from March 18 to June 15, 2020, and from Nov. 9, 2020, to May 14, 2021, generally are not to be taken into account for the purpose of determining whether a Greek nonresident passes the 183-day threshold to become a resident. Whether time spent in Greece between the two periods is taken into account to determine residency is considered on a case-by-case basis.
Effective for 2021 and 2022, employment income is exempted from the solidarity contribution.
According to European Commission guidance, employees who normally work in one European Union member country and live in another are still considered to be insured by the social insurance system of the normal work country while working at home.
Additionally, Greece has extended the payment period for contributions by employers in certain sectors to social tax for February, March, and April 2020 until Dec. 31, 2021.
Income Taxes
Income taxes are administered by the Independent Public Revenue Authority.
Coverage: Greek tax residents are liable to personal income taxation (φορου εισοδηματος φυσικων προσωπων) on their total worldwide earnings. Residency is established when an individual has resided in Greece for 183 days within the calendar year. Residency is assumed unless demonstrated otherwise. Moreover, if tax residents are found to have shifted their residency to a country with a preferential tax policy while retaining a significant financial interest in Greece, then they are considered to be tax residents for up to five years following departure.
Non-Greek tax residents must file with the Non-Greek Resident Tax Office and present documentation denoting the following:
If simultaneously tax resident of a country with which Greece has a double tax treaty, then non-Greek tax residents must file a tax residence certificate form with the other country (exempting the United States and Turkey);
If simultaneously tax resident of a country with which Greece does not have a double tax treaty, then non-Greek tax residents must present an income tax return filed with the home country’s tax office and a certification by the home country of the tax resident’s worldwide income, as well as proof of permanent residence status.
Rates and Thresholds: Income tax rates are levied on a progressive scale, with rates ranging from 22% to 45%.
Effective since Jan. 1, 2020, Greece’s national personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:| Range of Annual Income (Euro) | Income Tax Rate |
|---|---|
| Up to €10,000 | 9% |
| More than €10,000 and up to €20,000 | 22% |
| More than €20,000 and up to €30,000 | 28% |
| More than €30,000 and up to €40,000 | 36% |
| More than €40,000 | 44% |
| Range of Annual Income (Euro) | Income Tax Rate |
|---|---|
| Up to €20,000 | 22% |
| More than €20,000 and up to €30,000 | 29% |
| More than €30,000 and up to €40,000 | 37% |
| More than €40,000 | 45% |
| Range of Severance Pay (Euro) | Income Tax Rate |
|---|---|
| Up to €60,000 | Zero |
| More than €60,000 and up to €100,000 | 10% |
| More than €100,000 and up to €150,000 | 20% |
| More than €150,000 | 30% |
Registration: Employers must apply for a tax identification number by filing Form M1, Application for a Tax Identification Number/Change of Personal Details. Depending on the employer’s type of business, employers may need to file Form M3, Statement of Start/ Change of Employment of Non-Individuals (legal person, or association of persons), Form M7, Declaration of Taxpayer’s Relations, Form M6, Statement of Business Activities and/or Form M8, Statement of Members/Partners of Non-Individuals. All forms may be filed with the municipality’s One Stop Shop, a part of the local Citizen Service Center.
Taxable Amounts: Taxable income generally includes any income derived from wages, employment, severance pay, real estate income, stocks and benefits in kind, including company cars. Generally, income of any type is taxed according to the income tax schedule.
Foreign workers who are residents of other European Union countries and receive more than 90% of their total income in Greece are entitled to additional deductions.
Effective since Dec. 12, 2019, Greece has a program for tax nonresidents who transfer their tax residency to Greece to pay a flat income tax of €100,000 annually for 15 years on income earned outside of Greece, or €20,000 on behalf of each family member participating in the program. To apply for the program, individuals must have been tax nonresidents of Greece for at least seven of the previous eight years and must invest at least €500,000 in the country within three years of applying to participate in the program. The flat income tax generally must be paid by the last business day of July each year, except that the first payment must be made within 30 days of approval to participate in the program.
Effective starting Jan. 1, 2021, Greece has a second program for tax nonresidents who transfer their tax residency to Greece in connection with filling a new job to apply for 50% of their employment income earned in Greece to be exempted from income tax and the solidarity surcharge for seven years. To apply, individuals must have been tax nonresidents of Greece for at least five of the previous six years; must transfer their tax residency from a European Union or European Economic Area member or another country that has a tax information exchange agreement with Greece; and must intend to remain in Greece for at least two years. Applications must be made by July 31 of the year employment in Greece begins.
Withholding Methods: Employers must withhold income taxes from all paychecks and make monthly remittances.
Returns and Remittance: Employers must file returns and remit income taxes withheld to ΑΑDΕ no later than the end of the second month following wage payment.
Employers must file their returns online on the General Secretariat for Information Systems (GSIS) website using the TAXISNET system.
Employee Share Plans: Stock options are generally taxed as employment income unless they are exercised at least 24 months after they are granted, or 36 months if the business is categorized as small or very small and is not listed on a stock exchange. If the option is held for the required period, it is generally taxed at a flat rate of 15% with the special solidarity contribution. The income attributable to the stock option is calculated as the difference between the stock’s closing price on the day of exercise, or the company’s valuation at exercise if the stock is not listed on an exchange, and the price when the option was granted. When the option is exercised, employers must provide the employee a written statement of the income attributed to the option. Income from exercised stock options must be reported on monthly withholding returns for the purpose of providing the information for the employee’s income tax return, but tax does not have to be withheld.
Penalties: Employers who file late taxes or file taxes incorrectly can be subject to a fine and/or criminal proceedings.
Social Taxes
Greece’s Social Security scheme is known as the Unified Social Security Agency (EFKA). EFKA administers retirement, sickness, industrial injury, unemployment, maternity, and parenthood benefits. EFKA also funds the national health insurance system. Employers must file returns, remittances, and payments on a monthly basis. Effective March 1, 2020, EFKA was renamed the Electronic National Social Security Agency, abbreviated as e-EFKA.
The Unified Supplementary Insurance and One-Off Benefits Fund (ETEAP), previously known as the ETEAM fund, is a supplementary pension fund available to all employees, and participation in the fund is based on employees opting into coverage.
Coverage: Employers generally must register, withhold employee contributions and make employer contributions to EFKA for all their workers who are considered dependent employees. Mandatory coverage generally begins on the first day of employment.
Rates and Thresholds: Employers must contribute about 26% of an employee’s gross salary toward social security. The employee rate for social insurance contributions is about 16%. The employer and employee rates vary based on the nature of business activities and the degree of risk involved.
Employer and employee social insurance contributions are subject to a maximum amount of monthly compensation paid to an employee upon which the contributions may be assessed. Effective starting Feb. 28, 2020, the maximum monthly amount of taxable income is no longer tied to the minimum wage, may be adjusted for inflation in 2023 and 2024, and is to be adjusted every year starting Jan. 1, 2025. Previously, the maximum amount of taxable income was 10 times the official monthly minimum wage that was designed to accommodate 14 payments for a year. The maximum amount is commonly known in Greece as the maximum amount of insurable earnings (ανωτατο οριο ασφαλιστεων αποδοχων).
Effective since Feb. 1, 2019, the maximum monthly amount of taxable income upon which employer and employee social insurance contributions may be assessed is €6,500. Effective from Feb. 14, 2012, to Jan. 31, 2019, the maximum monthly amount of taxable income upon which employer and employee social insurance contributions may be assessed was €5,860.80.
Contributions also are subject to a minimum monthly tax base. If an employee’s compensation for a month was less than the minimum monthly tax base, the employee’s compensation for the month would be treated as having been the minimum monthly tax base for social insurance contribution calculations. The minimum monthly tax base applicable to an employee is an amount equal to the monthly minimum wage for which the employee would be eligible.
Effective since July 1, 2020, employers’ social insurance contributions are assessed as follows:
- Pension contribution: 13.33%;
- Supplementary pension contribution: 3.25% (effective starting June 1, 2022: 3%);
- Health care contribution: a contribution for sickness benefits of 4.3% and a contribution for cash benefits of 0.25%;
- Unemployment insurance contribution: 2.69% (effective for 2021 and 2022, 1.2%);
- Professional risk contribution: 1%; and
- High occupational risk contribution (only for industries with high occupational risk): 1.4%.
Employees’ social insurance contributions are assessed as follows:
- Pension contribution: 6.67%;
- Supplementary pension contribution: 3.25% (effective starting June 1, 2022: 3%);
- Health care contribution: a contribution for sickness benefits of 2.15% and a contribution for cash benefits of 0.4%;
- Unemployment insurance contribution: 1.83% (effective for 2021 and 2022, 1.2%); and
- High occupational risk contribution (only for industries with high occupational risk): 2.2%.
Effective until June 30, 2020, the unemployment insurance contribution rate in effect was 3.17% for employers and 1.83% for employees.
Employees insured as of Jan. 1, 1993, also are subject to a one-off benefit contribution of employees’ remuneration.
Reduction for younger employees: Effective since Jan. 1, 2019, the employer’s pension contribution may be reduced by 6.66 percentage points, to match the employee contribution of 6.67%, for employees younger than age 25. For employees who started work on or after Jan. 1, 2019, the reduction is effective from the start of employment with the employer until the month that the employee reaches age 25. If the employee began work with the employer before Jan. 1, 2019, the reduction is effective from Jan. 1, 2019, until the month that the employee reaches age 25.
Registration: Employers must register with the EFKA Registry of Employers upon hiring an employee to a dependent role. Employers must file the Employer Census Statement Application and a Declaration of Change of Employer Information to their local EFKA office.
All workers covered by a Greek insurance plan must possess a Greek social security number (AMKA) and must present a copy of registration to employers. Employees can receive an AMKA from their employers if they do not already possess one.
Effective Aug. 24, 2020, the system of social security numbers (AMKA) was replaced by a system of personal numbers (PA).
Taxable Amounts: Taxable income generally is considered to be all remuneration paid to employees. Government subsidies are available for those paid the minimum wage.
Withholding Methods: Employers must withhold employee EFKA contributions from all paychecks and remit them monthly.
Returns and Remittance: Employers are required to pay all EFKA contributions by the last business day of every month for contributions withheld in the previous month. Payments on Christmas and Easter Bonuses must be paid on the last business day of February and June, respectively. Payments can be made directly to the local EFKA office or at approved banks.
In addition, employers must present monthly returns (Analytical Periodic Report) by the last day of the calendar month following the month in which remuneration was paid. Employers generally must file the Analytical Periodic Report online.
Recordkeeping: Employers must maintain copies of social security returns for at least 10 years.
Penalties: Employers who fail to declare each employee in their returns and payments are subject to a penalty of €10,000.
Late payments are subject to a penalty of 3% of contributions outstanding for the first month, or portion of a month of delinquency and 0.51% of contributions outstanding for each subsequent month.
Employers who fail to file returns, submit late returns, or incorrectly file returns are subject to fines of between 10 and 50% of that month’s contributions.
Other Taxes
Greece imposes a special solidarity contribution (ειδικης εισφορας αλληλεγγυης, abbreviated as ΕΕΑ) on tax-liable individuals with annual income in excess of €12,000. The solidarity surcharge taxes employee pre-deduction income with rates from 2.2% to 10%, with the highest rate applied on those with annual income in excess of €220,000. Employers are responsible for withholding the solidarity surcharge from employee paychecks and remitting them to AADE on a monthly basis.
Effective for 2021 and 2022, employment income is exempted from the solidarity contribution.
Effective starting Jan. 1, 2020, Greece’s special solidarity contribution rates and minimum and maximum amounts of income for each tax bracket are as follows:| Range of Annual Income (Euro) | Income Tax Rate |
|---|---|
| Up to €30,000 | Zero |
| More than €30,000 and up to €40,000 | 2% |
| More than €40,000 and up to €65,000 | 5% |
| More than €65,000 and up to €220,000 | 9% |
| More than €220,000 | 10% |
| Range of Annual Income (Euro) | Income Tax Rate |
|---|---|
| Up to €12,000 | Zero |
| More than €12,000 and up to €20,000 | 2.2% |
| More than €20,000 and up to €30,000 | 5% |
| More than €30,000 and up to €40,000 | 6.5% |
| More than €40,000 and up to €65,000 | 7.5% |
| More than €65,000 and up to €220,000 | 9% |
| More than €220,000 | 10% |
State/Jurisdiction Taxes
Taxes on employment income are not assessed by any of Greece’s administrative regions or local jurisdictions.
COMPENSATION AND BENEFITS
Greece has several labor laws employers must uphold. These laws set out minimum wage, overtime, hours of work, holidays, leave, wage payment, and worker’s compensation.
The Ministry of Labor and Social Affairs is the main regulatory body overseeing labor practices in Greece. The Ministry of Labor and Social Affairs’ mandate is to enforce labor laws, maintain industrial stability, conduct industrial training, and promote the health and safety of employees.
Some wage and hour provisions, including the minimum wage and severance pay, vary depending on whether an employee is considered a blue collar worker, also known as a craftsman, or white collar workers. In general, blue collar workers can be defined as carrying out manual work and white collar workers generally perform nonmanual tasks in an office.
Minimum Wage
Effective starting Feb. 1, 2019, Greece has a standard official monthly minimum wage without there being a separate minimum wage for employees younger than 25 years of age. Effective until Jan. 31, 2019, Greece’s minimum wages were differentiated based on whether employees were younger than 25 years of age or at least 25 years of age.
Greece’s official monthly minimum wage for employees is designed to accommodate 14 payments for a year. There is an unofficial but prorated and commonly accepted monthly minimum wage to accommodate 12 payments for a year that is determined by multiplying the official monthly minimum wage by 14 and dividing the result by 12. The official monthly minimum wage for employees increases by 10% of the standard value every three years of service up to nine years of service. The daily minimum wage for craftsmen increases by 5% of the standard value every three years of service up to 18 years of service. Both increases use years of service completed as of Feb. 14, 2012.
Effective Jan. 1, 2022, the monthly minimum wage for employees in Greece is €663 for salaries paid 14 times per year or €773.50 for salaries paid 12 times per year. The official monthly minimum wage for employees ranges from €663 to €861.90, depending on length of service. Effective Jan. 1, 2022, the daily minimum wage for craftsmen in Greece ranges from €29.62 to €38.51, depending on length of service.
Effective from Feb. 1, 2019, to Dec. 31, 2021, Greece’s official monthly minimum wage designed to accommodate 14 payments for a year is €650, while the unofficial but prorated and commonly accepted monthly minimum wage to accommodate 12 payments for a year is €758.33. The official monthly minimum wage ranges from €650 to €845, depending on length of service. Effective from Feb. 1, 2019, to Dec. 31, 2021, the daily minimum wage for craftsmen ranges from €29.04 to €37.75, depending on length of service.
Effective from Feb. 14, 2012, to Jan. 31, 2019, for employees who were at least 25 years of age, Greece’s official monthly minimum wage designed to accommodate 14 payments for a year was €586.08, while the unofficial but prorated and commonly accepted monthly minimum wage to accommodate 12 payments for a year was €683.76. Effective from Feb. 14, 2012, to Jan. 31, 2019, for employees who were younger than 25 years of age, Greece’s official monthly minimum wage designed to accommodate 14 payments for a year was €510.95, while the unofficial but prorated and commonly accepted monthly minimum wage to accommodate 12 payments for a year was €596.11.
Overtime
Effective since June 19, 2021, overtime is limited to 150 hours per year. Up to five hours of overtime per week for employees on a five-day week and up to eight hours of overtime per week for employees on a six-day week do not count towards the limit, but employees are entitled to pay of 20% above normal wages for these hours. Only hours worked beyond 45 in a week for a five-day week and 48 in a week for a six-day week count towards the 150-hour annual limit, and employees are entitled to pay of 40% above normal wages for these hours. The Ministry of Labor and Social Affairs can grant exceptions to the 150-hour annual limit, and employees are entitled to pay of 60% above normal wages for hours above the 150-hour limit. For overtime worked without permission from the Ministry of Labor and Social Affairs, employees are entitled to pay of 120% above normal wages.
Effective until June 18, 2021, overtime was limited to 120 hours per year.
In lieu of paying overtime rates, employers may provide compensatory time off for up to two hours of overtime per day, so long as the compensatory time off is provided within six hours of the overtime hours.
Employers who require employees to work on Sunday or a public holiday must pay employees 75% above normal wages.
Hours of Work
Effective since June 19, 2021, the normal work week is 40 hours per week, which can be divided into a five-day week of eight hours per day or a six-day week of six hours and 40 minutes per day. Employees may also request a four-day week of 10 hours per day. Effective until June 18, 2021, the normal work week was 40 hours per week, five days a week, although a six-day week of up to 48 hours could be negotiated in an agreement.
However, Sunday is considered an obligatory public holiday. Employers must provide all employees with 11 hours of rest a day between shifts.
Effective since June 19, 2021, employees must be granted a break of at least 15 and up to 30 minutes after four hours of work. Effective until June 18, 2021, a break was required to be granted after six hours of work and did not have a time limit.
Employers may require two additional hours of work per day for up to a four month period provided that employers reduce the workday by the same amount immediately following this period. Employers may also grant employees an additional day of rest instead of providing a period of reduced work. In both cases, employees may reject the change in hours.
Holidays
Effective since June 19, 2021, employees are entitled to the following national holidays per year with pay, although the Ministry of Labor and Social Affairs may determine optional holidays every year.
- Jan. 1: New Year’s Day;
- Jan. 6: Epiphany;
- March 25: Independence Day;
- Easter Monday;
- May 1: Labor Day;
- Aug. 15: Assumption;
- Oct. 28: Ohi Day;
- Dec. 25: Christmas; and
- Dec. 26: Second Day of Christmas.
Additional customary holidays include:
- First day of Lent
- Good Friday
- Whit Monday
Leave
Employers must provide employees with 20 days of annual leave if they are working five-day weeks and 24 days of annual leave if they are working six-day weeks. Employers must provide an additional day of leave per year for every two years each employee has worked, for the initial 10 years of employment. After 10 years of service, employers must provide employees working five days a week with 25 days of annual leave and employees working six days a week with 30 days of annual leave. Effective since June 19, 2021, annual leave provided in a year may be used until March 31 of the following year.
Sickness Leave: Employers must provide employees with a month’s pay of paid sick leave. However, the employer’s obligation to pay sick employees salary is reduced by the amount provided by the employee’s Social Security fund.
Maternity Leave: Employees who have contributed to the social security fund for 200 days and are pregnant or have just given birth are entitled to up to 56 days of paid leave before their expected date of childbirth and 63 days following the birth of their child. Employers are responsible for 15 days of paid leave for employees who have worked for less than a year and up to one month of the paid leave allowance for employees who have worked more than one year, with the remainder being paid by social security. Employers may deduct the amount employees receive from their insurance from employee pay during the initial 15 days of leave.
Employees may take an additional six months of leave, which is paid at the minimum wage by social security. Employees may take this leave while working part-time as well.
In addition, employers must reduce nursing mothers’ working day by one hour for the 30 months after new mothers return from maternity leave.
Unpaid Leave: Effective since June 19, 2021, employees and employers may agree in writing for the employee to take unpaid leave for periods of up to a year. During the period of leave, the employment contract is considered to be suspended and no social taxes are owed. The written agreement must be submitted to the Ministry of Labor and Social Affairs.
Wage Payment
Employers must pay salary at least once a month.
Bonuses and Special Benefits
Mandated Bonuses: Employers must pay all employees bonuses at Easter, when employees take their annual leave, and at Christmas. The Easter and vacation bonuses are typically equal to half a month’s salary, while the Christmas bonus is typically equal to a month’s salary. Employees who did not work for the employer during the entire period of Jan. 1 to April 30, for the Easter bonus, or May 1 to Dec. 31, for the Christmas bonus, should be given these bonuses on a prorated basis. The Christmas and Easter bonuses are generally increased by 1 ⁄ 24 to account for the vacation bonus, which is considered part of the wages used to calculate the Christmas and Easter bonuses.
Termination Pay
Employers must provide employees with severance payments regardless of the type of work performed. Lump-sum severance payments are taxable at rates separate from other employment income. Effective until Dec. 31, 2021, the required severance payment amounts were based on the type of work an employee performed—generally whether an employee was considered a blue-collar worker, also known as craftsmen, or white-collar worker. Starting Jan. 1, 2022, all workers became subject to the provisions previously applicable to white-collar employees, and a craftsman’s monthly wages for the purpose of calculating severance pay is to be considered 22 days of wages, unless they receive a monthly wage.
The required severance pay amounts for all workers, effective since Jan. 1, 2022, or white-collar workers, effective until Dec. 31, 2021, are as follows:
- less than one year of service; no severance pay;
- at least one and up to four years of service: two months of wages;
- at least four and up to six years of service: three months of wages;
- at least six and up to eight years of service: four months of wages;
- at least eight and up to 10 years of service: five months of wages; and
- at least 10 and up to 16 years of service: six months of wages plus one month for each year of service above 10 years, or a maximum of 12 months of wages.
Employees with more than 16 years of service are entitled to an additional month of wages for each additional year of service, up to 12 additional months for 28 years of service, but the maximum monthly wage that may be taken into account for these payments is €2,000.
For craftsmen, effective until Dec. 31, 2021:
- less than one year of service: no severance pay;
- at least one year and up to two years of service: seven days of wages;
- at least two years and up to five years of service: 15 days of wages;
- at least five years and up to 10 years of service: 30 days of wages;
- at least 10 years and up to 15 years of service: 60 days of wages;
- at least 15 years and up to 20 years of service: 100 days of wages;
- at least 20 years and up to 25 years of service: 120 days of wages;
- at least 25 years and up to 30 years of service: 145 days of wages; and
- 30 years or more: 165 days of wages.
The required severance pay is halved if an employee is given a written notice of termination, subject to the following required notice periods:
- At least one and up to two years of service, one month’s notice;
- At least two and up to five years, two months’ notice;
- At least five and up to 10 years, three months’ notice; or
- At least 10 years, four months’ notice.
Workers’ Compensation
Employees are entitled to workers’ compensation—paid by their Social Security fund—when injured during work.
Recordkeeping
Employers must keep records related to employment contracts, leave, overtime hours worked, and pay statements. Records related to overtime hours worked must be kept for five years.
FOREIGN WORKERS
Foreign workers generally are entitled to the same rights as Greek citizens and are generally covered by the same tax and workplace laws, but must obtain the proper work permits to work legally in Greece.
Visas: Foreign workers generally must obtain a visa to enter Greece and a residence permit in order to work legally in Greece. Residence permits for non-EU citizens are sorted into four major categories—permits for dependant employment or provision of services of work, permits for seasonal employment, permits for corporate executives and permits for temporary travel for the provision of services. Citizens of a country of the EU must register at a police station in Greece and obtain specialized residence permits. These permits are valid for five years.
Permits for dependent employment or provision of services of work allow foreign workers to work for a given employer in a given role. They are valid for one year, but are renewable for two year segments. Foreign workers granted these permits generally must be paid €24,000 per year, or €60,000 per year if the foreign workers are especially qualified professionals. In order to apply for a permit, eligible employees must file an application with their Municipality of residence and deposit three months of each of the foreign workers’ salary with the foreign workers’ nearest Greek consulate, which is returned upon the foreign workers’ receipt of a residence permit.
Permits for seasonal employment are granted for periods of up to six months in specific fields relating to temporary or seasonal employment. Employers wishing to employers foreign workers with these permits must first gain approval from the General Secretary of the Region at least three months prior to the intended hire date. In addition, employers must deposit an amount equal to one month’s salary of an unskilled worker at an approved bank or the Loans and Deposits Fund. This deposit is returned to employers after the seasonal workers have left Greece. Residence permits for seasonal employees cannot be renewed.
Permits for corporate executives are provided for members of boards of directors, managers, legal representatives and senior executives, as well as certain specialized scientific personnel and technicians. Up to 5% of a company’s personnel may consist of permit holders. Permits are valid for one year initially and can be renewed in two year segments. Foreign nationals wishing to obtain these permits should submit an application to the Directorate for Aliens and Migration of the Ministry of Interior, Public Administration and Decentralization.
Permits for temporary travel for the provision of services are granted to foreign nationals under a signed contract for the provision of specific services relating to the installation, test operation and maintenance of supplied items, the period of provision of services, the number and speciality of the persons to be employed and the payment of the employees’ travel expenses, medical and pharmaceutical care and returns costs. The permit is issued by the General Secretary of the Region for up to one year, renewable in exceptional cases for up to six additional months.
Taxes: Foreign workers are taxed on their Greek-sourced income according to the same taxation schedule as Greek citizens.
Nonresidents are not eligible to receive deductions under the Greek tax system, unless they are EU residents earning more than 90% of their income in Greece. Additionally, nonresidents only are taxed on their Greek sourced income. Foreign workers who pay social insurance contributions to their country of residence in the EU are exempt from social insurance payments but may still receive some benefits from the Greek social insurance scheme.
Wages/Payments: Employers must adhere to the same regulations when paying Greek nationals and foreign workers. Greece does not impose any restrictions on paying employees in different currencies.
WORKING IN THE UNITED STATES
Foreign workers from Greece must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate
Greece is eligible for the visa waiver program for business visitors, which allows Greek citizens to travel to the U.S. for 90 days or less for business-specific purposes without having to obtain a B-1 business visa. Stays longer than 90 days will require a visa. Individuals may return to the U.S. under the visa waiver program if a “reasonable length of time” has passed. The determination for a reasonable length of time is at the discretion of the Department of Homeland Security.
U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.
For tax purposes, Greek citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes. Greece has a both a tax treaty and a totalization agreement with the U.S.
State and local taxation of Greek workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.
The U.S. labor laws apply to all workers employed and providing services in the country.
Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.
Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the
Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.
Income Taxes: Generally, nonresidents in the U.S. who are from Greece and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.
A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Greece and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.
Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the
Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.
An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the
Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.
Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.
Tax treaties: Greece and the U.S. have a tax treaty with provisions addressing host country taxation of the nonresident workers. A summary of those benefits is listed in the Tax Treaty Exemption Comparison Chart. To claim the treaty benefit, the nonresident must file Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with the employer.
Students, teachers and trainees in particular must include a statement with Form 8233 to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. This statement affirms that the student or trainee is temporarily in the U.S. for purposes of teaching or has accepted an invitation by the U.S. government (or by a political subdivision or local authority) for the purpose of studying or engaging in research for a period not expected to exceed three years for teachers by a university or other recognized educational institution in the U.S. It also must affirm that the individual will receive compensation for services performed in the U.S. There is no limit is placed on the teacher, student and trainee compensation for Greek residents.
Examples of the statements necessary to claim a treaty exemption from U.S. taxes are included in Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens.
Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.
Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.
Totalization Agreements: Social Security totalization agreements can allow foreign workers and U.S. nationals working abroad to avoid paying into two social security systems while being subjected to losing benefits for their home country system. Under totalization agreements, generally, foreign workers will only pay into one of the social security systems, either the home or the foreign system, but not both. Foreign nationals, utilizing a totalization agreement, also can count years of contributions paid to different social security systems to all of the systems they have contributed to in order to be eligible for benefits in one country.
Greece and the U.S. have entered into a totalization agreement and a summary of those provisions is included in
Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.
There are no particular requirements that employees be paid in U.S. dollars.
TREATY ARRANGEMENTS
Greece has entered into more than 50 income tax treaties, including an income tax treaty with the United States. Greece has five totalization agreements for social tax coverage purposes, including an agreement with the United States.
Greece’s tax treaties are available in
RESOURCES
In English unless otherwise noted.
General
Ermis, the National Portal of Public Administration(Greek)
Greece General Commercial Registry (Greek)
Enterprise Greece
U.S. State Department: U.S. Relations With Greece
U.S. Central Intelligence Agency:
- The World Factbook: Greece
- The World Factbook: Languages
U.S. Department of Commerce: Greece - Business Travel
Currency Details
Unicode Consortium: Currency Symbols
International Organization for Standardization: Currency Codes - ISO 4217
United Nations: United Nations Terminology Database: Greece
Taxes
Greece General Secretariat for Information Systems (Greek)
Greece Ministry of Finance (Greek)
EFKA, the Unified Social Security Fund (Greek)
Greece Ministry of Social Security and Labor (Greek)
Law No. 4646 of 2019 (Greek)
ΑΑΔΕ Circular of Dec. 24, 2020, Regarding Tax Treatment of Stock Options (Greek)
ΑΑΔΕ Circular of June 25, 2021, Regarding Tax Residency (Greek)
ΑΑΔΕ Circular of Nov. 15, 2021, Regarding Severance Payments (Greek)
Nomos (2020: 4727) Ψηφιακ διακυβρνηση - Ηλεκτρονικς επικοινωνες [Digital Governance – Electronic Communications] Ephemeris tes Kyvernesos tes Hellenikes Demokratias [E.K.E.D.] 2020:A184 (Greek)
Nomos (2020: 4756) Μετρα ενισχυσης των εργαζομενων και ευαλωτων κοινωνικων ομδων, κοινωνικοασφαλιστικες ρυθμισεις και διατξεις για την ενισχυση των ανεργων. [Measures to assist workers and vulnerable social groups, social security arrangements and provisions to assist the unemployed] Ephemeris tes Kyvernesos tes Hellenikes Demokratias [E.K.E.D.] 2020:A235 (Greek)
Nomos (2020: 4758) Κινητρα για την προσελκυση φορολογικων κατοικων και αλλες διαταξεις [Incentives to attract tax residents and other provisions] Ephemeris tes Kyvernesos tes Hellenikes Demokratias [E.K.E.D.] 2020:A242 (Greek)
Covid-19 guidance on payment postponements - Extension to Dec. 31, 2021 (Greek), of the Ministers of Finance and of Labor and Social Affairs
Compensation and Benefits
EURES, the European Job Mobility Portal: Living and Working Conditions in Greece
Ministry of Labor and Social Affairs:
- Holiday Allowances (Greek)
- Minimum Wages Effective Jan. 1, 2022 (Greek)
- Severance Pay Calculation (Greek)
- Implementing Circular for Law 4808/2021 (Greek)
Foreign Workers
Embassy of Greece in Washington, D.C.
Ministry of Foreign Affairs (Greek)
Working in the United States
U.S. Department of Labor:
- Foreign Labor Certification
- Hiring Foreign Workers
U.S. Internal Revenue Service:
- IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
- IRS Publication 15, Circular E, Employer’s Tax Guide
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
U.S. Department of State, Visa Waiver Program
Treaty Arrangements
General Secretariat for Information Systems, Agreements for the Avoidance of Double Taxation (Greek)