Employer of Record (EOR) in Greece
An EOR in Greece allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.
Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Greece.
Quick Overview of EOR in Greece
Expanding into Greece doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Greece's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions, so you can focus on growing your business without the need to set up a costly local entity.
The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Greece can cost anywhere from EUR 10,000 to EUR 50,000 plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.
How an EOR Works
Atlas HXM provide EOR servicesthat ensure your business remains compliant with Greece's labor laws while you focus on growing your operations, free from administrative and legal burdens.
Candidate Selection
Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Greek rules, and configuring payroll and statutory obligations correctly.
Employment Contracts
Atlas HXM drafts and administers employment contracts in compliance with Greek labor law. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:
Job title and responsibilities
Salary, benefits, and working hours
Leave entitlements and notice periods
Payroll & Benefits Management
Payroll is processed in euros (EUR), including:
Accurate tax withholdings and social security contributions
Statutory benefits such as medical insurance and mandatory bonuses
The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Greece's laws.
Ongoing HR Support
Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.
What to Choose: EOR vs PEO
Work Life in Greece
Greece's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:
Employment Types:
Permanent: Open-ended contracts with full statutory benefits.
Fixed-Term: Contracts for specific duration (maximum 3 years) with same rights as permanent employees except severance.
Temporary: Through Temporary Employment Companies for exceptional, temporary, or seasonal needs.
Probation Periods: Employment contracts in Greece include a probationary period of up to 6 months, during which either party may terminate without notice or severance pay unless otherwise agreed. Additionally, under provisions carried over from previous legislation and still in force, employers retain the right to dismiss an employee without notice or severance at any point within the first 12 months of an indefinite contract. The EOR ensures that all terms are compliant with Greek labor law.
Working Hours & Overtime: In Greece, the standard legal workweek is 40 hours (5-day week). Hours worked between 41 and 45 per week are classified as "overwork," a distinct category under Greek law that carries its own statutory premiums. Hours beyond 45 qualify as overtime proper, subject to stricter limits and higher pay rates. The maximum working week, including overtime, is capped at 48 hours. The EOR ensures that all overwork and overtime is calculated correctly and that employee work hours comply with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|---|---|
Annual Leave | 20 working days (5-day week) or 24 days (6-day week), increasing by 1 day per year up to 26/22 days | Paid by employer; pro-rata from start of employment |
Maternity Leave | 17 weeks (8 before, 9 after birth) | 100% of earnings paid by state social insurance fund |
Paternity Leave | 14 days | Paid leave for working fathers |
Sick Leave | 1-6 months depending on service length | 50% of salary; employer pays first 3 days, then social security |
Public Holidays | All statutory holidays | 175% of normal daily wage if worked; handled by Atlas HXM |
Vacation Leave | As per annual leave entitlement | Paid; unused leave typically paid out upon termination |
Payroll & Benefits: Minimum wage is EUR 880 per month for white-collar workers and EUR 39.30 per day for blue-collar workers. Atlas HXM manages payroll in EUR, social security contributions (approximately 40% total), mandatory bonuses (13th month Christmas bonus, Easter bonus, vacation allowance), and private health insurance. Supplemental benefits can include dental, vision, wellness programs, and professional development options.
Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Greece's labor laws while businesses can focus on operations without administrative burdens.
What to Choose: Indirect vs Direct EOR
Taxes & Compliance
Greece operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit monthly payroll tax withholdings by the 20th of the following month, social security contributions by the 15th of the following month, and provide annual reports summarizing employee compensation by February 28th. Personal income tax returns are due by June 30th of the following year.
Category | Details |
|---|---|
Employer Payroll Tax | Social security contributions: 24-25% of gross salary
|
Employee Payroll Tax | Residents: progressive income tax 9%–44%
|
Pension System | Pay-as-you-go system with public and private components
|
VAT & EOR Costs: Greece applies a 24% VAT rate. EOR services are generally subject to VAT, either included in quoted fees or added separately. EU companies may benefit from reverse charge mechanisms, while non-EU companies typically pay VAT on EOR services.
Atlas HXM handles tax compliance, including progressive income tax calculations, social security contributions, year-end filings, and expatriate tax arrangements, ensuring businesses remain compliant with local laws while minimizing administrative burden.
Termination
Employees must give written notice for termination. After the 12-month probationary period, statutory notice periods range from 1 to 4 months depending on length of service. Severance pay is required for indefinite contracts terminated by the employer after 12 months, calculated based on length of service. The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.
Visas & Work Permits
In Greece, EU citizens have the right to work freely without additional permits. Non-EU nationals must obtain residence permits and work authorization before employment.
Once authorization is in place, Atlas HXM can employ the individual under the EOR model and then manage payroll, social security, benefits, and compliant employment administration.
5 Things to Look for in an EOR Provider in Greece
Local expertise and knowledge of Greek labor laws, social security contributions, and regulatory requirements.
Advanced technology for payroll, reporting, and HR system integration.
Experience in your industry.
Strong compliance track record and relationships with Greek government agencies and legal advisors.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
FAQs
How quickly can I hire employees in Greece through an EOR?
With an EOR, you can typically hire employees in Greece within 1-2 weeks, depending on the complexity of the role and completion of required documentation.
What are the mandatory benefits I must provide to employees in Greece?
Mandatory benefits include social security coverage, paid annual leave (minimum 20-24 days), sick leave, maternity/paternity leave, and the 13th month salary (Christmas bonus).
Can I terminate an employee in Greece without cause?
Yes, but you must provide proper notice (1-4 months depending on length of service) and pay severance compensation after the 12-month probationary period.
What is the cost difference between using an EOR and establishing a local entity in Greece?
EOR services typically cost 8-15% of gross salary, while establishing a local entity requires significant upfront investment (EUR 10,000-50,000+) plus ongoing operational costs.
Do foreign employees need work permits to work in Greece through an EOR?
EU citizens do not need work permits. Non-EU citizens require residence permits and work authorization.
How are taxes handled for employees working in Greece?
The EOR handles all tax obligations including income tax withholding, social security contributions, and filing requirements. Greek tax residents pay progressive income tax rates from 9% to 44%.