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Payroll in Greece
You've just hired your first employee in Greece. You know about the salary, but then you discover the 13th and 14th salary payments, the complex social security system split between multiple funds, and the Greek labor law requirements that don't quite match what you're used to. Greece payroll isn't just about getting the numbers right. It's about understanding a system where Christmas bonuses are mandatory by law, Easter payments are separate calculations, and summer vacation allowances follow their own formula.
Greek payroll stands out for its multiple mandatory salary components beyond base pay. Every employee receives a 13th salary (Christmas bonus) and a 14th salary (split between Easter and summer vacation allowances). These aren't optional perks—they're legal requirements calculated as percentages of monthly salary. You'll also work with a social security system that combines contributions to EFKA (the unified social security fund) with separate unemployment and housing funds. The tax system uses progressive brackets, and both employees and employers contribute significant amounts to social insurance.
Greece payroll at a glance
What makes Greece different
Greek employees expect payment at the end of each month, typically by the last working day. The 13th salary gets paid in two installments: half before Christmas and half before Easter. The 14th salary (vacation allowance) is paid when the employee takes their main annual leave, typically during summer months.
Social security contributions in Greece are among the highest in Europe. For 2027, total employer contributions reach approximately 24.81% of gross salary, while employees contribute around 15.33%. These rates cover pension, health, unemployment, and other mandatory insurances through EFKA.
The Greek tax year follows the calendar year, but payroll tax is calculated and withheld monthly based on annual income projections. Employees must file annual tax returns by June 30 of the following year, which can result in adjustments to what was withheld during the year.
Quick compliance snapshot
Key employer obligations:
- Register with EFKA before hiring your first employee
- Submit monthly analytical statements (APA) by the last working day of the following month
- Pay social security contributions by the last working day of the following month
- Withhold and remit income tax monthly by the last working day of the following month
- Maintain detailed payroll records for at least 5 years
- Issue electronic payslips (e-payslips) through the government's Ergani system
Standard employment costs beyond salary:
- 13th salary: One full month's pay (typically 50% in December, 50% at Easter)
- 14th salary: One full month's pay (paid with vacation, usually summer)
- Employer social contributions: 24.81% of gross salary
- Annual leave: Minimum 20 working days (increases with tenure)
Budget for the real cost
When budgeting for a Greek employee earning €3,000 monthly, plan for approximately €4,200 in total monthly cost including employer contributions, plus the equivalent of two extra months for 13th and 14th salaries spread across the year.
One Global Payroll manages your Greece payroll compliance end-to-end, from EFKA registration to monthly submissions, so you can focus on your team while we handle the 13th salary calculations, contribution filings, and deadline management.
How does payroll work in Greece?
Greece employers are required to pay employees monthly. The standard pay date is the last working day of each month.
Most companies process payroll between the 25th and the last day of the month. You'll need to factor in bank processing time – typically 1-2 business days – to ensure employees receive payment on time.
Monthly payroll cycle
Collect timesheets
By 20th of monthGather attendance, overtime, and leave records
Calculate payroll
20th-25th of monthProcess gross pay, deductions, and contributions
Submit declarations
By last working dayFile social security and tax reports
Process payments
Last working dayTransfer salaries to employee accounts
Legal payment requirements
Greek labor law requires payment by the end of each month. Late payment can result in penalties and potential employee claims for compensation.
Employers must pay salaries in euros, even for international companies. You can't pay Greek employees in other currencies without proper authorization.
What about 13th and 14th salary payments?
Greece mandates both 13th and 14th salary payments. These aren't bonuses – they're legally required components of annual compensation.
The 13th salary (Christmas bonus) equals 1/12 of annual earnings. You'll pay half in December and half before Orthodox Easter. The 14th salary (holiday bonus) equals 1/24 of annual earnings and is paid in two installments before summer holidays (typically June and August).
| Payment Type | Amount | Payment Schedule | Tax Treatment |
|---|---|---|---|
| 13th salary | 1/12 annual earnings | 50% in December, 50% before Easter | Taxed as regular income |
| 14th salary | 1/24 annual earnings | Split into two payments (June, August) | Taxed as regular income |
Both payments include all regular salary components – base pay, allowances, and regular bonuses. They're subject to standard income tax and social security contributions.
Budget for mandatory bonuses
When calculating total employment costs in Greece, add approximately 54% to base salary for 13th/14th payments, employer contributions, and other statutory costs.
Calculating the payments
Calculate these bonuses based on the employee's gross monthly salary during the reference period. Include any regular allowances or supplements that form part of normal pay.
For new employees, prorate the amounts based on months worked. An employee who joins in July receives half the 13th and 14th salary amounts in their first year.
How does vacation pay work?
Greek employees earn 20 working days of paid annual leave (24 days after one year of service). Vacation pay equals regular gross salary during leave periods.
You'll pay vacation days at the employee's current daily rate. Calculate this by dividing monthly gross salary by 25 (the standard working days per month in Greece).
Employees can't waive their vacation entitlement for additional pay, except upon termination. When employment ends, you must pay out all accrued unused vacation days at the current daily rate.
Vacation accrual timing
Employees earn vacation days throughout the year. Track accruals monthly to ensure accurate calculations for mid-year terminations or leaves.
Holiday pay during vacation
Greece requires an additional holiday allowance equal to 50% of regular pay for vacation days taken. This means employees receive 1.5x their normal daily rate during vacation periods.
Pay this allowance together with regular salary in the month vacation is taken. Include it in gross pay for tax and social security calculation purposes.
What payment methods are allowed?
Bank transfer is the only acceptable payment method for Greek payroll. Cash payments aren't permitted for regular employees under standard employment contracts.
You must transfer salaries to Greek bank accounts in euros. Employees need to provide their IBAN and bank details before their first pay date.
Set up transfers 2-3 business days before the payment deadline to account for bank processing time. Most Greek banks process domestic transfers within 24 hours, but build in buffer time for potential delays.
Payment setup requirements
- Employee IBAN (Greek bank account)
Required before first payment
- Bank transfer authorization
Set up recurring monthly payments
- Payment reference format
Include employee ID and month/year
- Processing lead time
Initiate 2-3 days before deadline
International company considerations
International companies without a Greek bank account must establish local banking relationships or use an Employer of Record. You can't process Greek payroll from foreign accounts due to regulatory requirements.
Consider foreign exchange timing if converting from another currency. Lock in rates before the payment deadline to avoid currency fluctuation impacts on net pay amounts.
What must payslips include?
Greek payslips must show detailed breakdowns of gross pay, all deductions, and net pay. Employees have the legal right to receive itemized payslips each pay period.
Required payslip elements:
- Employer and employee identification details
- Pay period dates
- Gross salary breakdown (base pay, allowances, overtime)
- Employee social security contributions (detailed by type)
- Income tax withheld
- Any other deductions (loans, garnishments)
- Net pay amount
- Employer social security contributions (for transparency)
- Year-to-date totals
Payslips must be in Greek. If you operate in English internally, you'll still need Greek-language payslips for compliance.
Electronic payslip requirements
Electronic payslips are acceptable in Greece, but employees must have secure access to download and store them. Keep digital records for at least 5 years.
Delivery and record-keeping
Provide payslips by the payment date each month. You can deliver them electronically through secure employee portals or email, or provide paper copies.
Maintain payslip records for five years minimum. Greek labor inspectors can request historical payroll documentation during audits, and employees may need past payslips for loan applications or disputes.
Store copies securely with appropriate data protection measures. Payslips contain sensitive personal and financial information subject to GDPR requirements in Greece.
What taxes apply in Greece?
Before your first payroll run in Greece, you'll need a tax identification number (AFM) and registration with the tax authority (AADE). The employer handles all withholding, and Greek tax rates for 2027 remain progressive across five brackets.
Income tax brackets
Greece applies a progressive income tax system to employment income. The rates for 2027 are:
| Annual Income (€) | Tax Rate |
|---|---|
| €0 - €10,000 | 9% |
| €10,001 - €20,000 | 22% |
| €20,001 - €30,000 | 28% |
| €30,001 - €40,000 | 36% |
| Over €40,000 | 44% |
There's no separate tax-free allowance in Greece. The 9% rate applies from the first euro earned. For monthly payroll calculations, divide these thresholds by 12 to get the applicable rate per pay period.
A solidarity contribution applies on top of income tax for higher earners. This ranges from 2.2% on income over €12,000 annually to 10% on income exceeding €200,000. Most employers calculate this monthly alongside income tax withholding.
Monthly vs annual calculation
While tax brackets are annual figures, you'll withhold based on cumulative year-to-date income each month. This ensures employees pay the correct progressive rate throughout the year.
Withholding requirements
Employers must withhold income tax and solidarity contributions from every paycheck. You're legally responsible for calculating, deducting, and remitting these amounts to AADE.
Monthly tax declarations (Form F2) are due by the last working day of the following month. For January 2027 payroll, you'll file by February 28, 2027. Payment must accompany the declaration—there's no separate grace period.
Annual reconciliation happens through Form F1, due by March 31, 2028 for the 2027 tax year. This reconciles total withholdings against actual tax liability. Any underpayment creates immediate employer liability plus interest at 1.17% monthly.
Employees receive an annual tax certificate (Form Misthodosia) by March 15, 2028. They'll use this for their personal tax returns, due by June 30, 2028.
Tax registration
New employers need an AFM (tax identification number) before hiring anyone. If you're a foreign company without a Greek entity, you'll need to register through AADE's online portal (TAXISnet) or appoint a fiscal representative.
Registration typically takes 5-10 business days. You'll need:
- Company registration documents
- Proof of business address in Greece
- Authorized signatory identification
- Bank account details for tax payments
Once registered, you'll receive TAXISnet credentials for electronic filing. All payroll tax submissions must be electronic—paper filing isn't accepted for employers in 2027.
Register each employee through the Ergani system within one business day of their start date. This links their AFM to your payroll and enables tax withholding reporting.
Tax registration checklist
- Obtain employer AFM
5-10 business days processing
- Register for TAXISnet portal
Required for all electronic filings
- Register employees in Ergani
Within 1 business day of hire
- Set up monthly payment method
Direct debit recommended
Special tax considerations
Non-resident employees
Greek-source employment income is taxable for non-residents working in Greece, even temporarily. You'll withhold at the same progressive rates, but non-residents can't claim certain deductions available to residents.
Tax residency depends on where someone spends more than 183 days in a calendar year. If an employee becomes tax resident mid-year, you'll need to recalculate withholding from their first day of work in 2027.
Non-residents from EU countries can often claim tax treaty benefits. This requires a certificate of tax residence from their home country, submitted before you process payroll. Without it, withhold at full Greek rates.
Tax treaty implications
Greece has tax treaties with over 50 countries. These typically prevent double taxation but don't eliminate Greek withholding obligations. The employee claims relief through their home country tax return.
For short-term assignments (under 183 days), some treaties allow exemption from Greek tax if the employer is foreign and doesn't have a Greek permanent establishment. You'll need legal confirmation before applying this—AADE audits these cases closely.
Remote workers and digital nomads
Remote workers physically present in Greece trigger Greek tax withholding obligations, regardless of where the employer is based. The 183-day rule applies here too.
Greece introduced a 50% income tax reduction for certain foreign tax residents who move to Greece in 2027. This applies for seven years but requires specific documentation before the employee's first payroll. Standard withholding applies until approval.
Common tax mistakes
Missing the monthly filing deadline happens more than it should. AADE assesses a €100 penalty per late F2 form, plus 1.17% monthly interest on unpaid tax. Three consecutive late filings can trigger a full payroll audit.
Incorrect solidarity contribution calculations are frequent. Many employers forget to include bonuses and 13th/14th salary payments in the annual income base. This creates underpayment that surfaces during annual reconciliation, with the employer liable for the shortfall.
Failing to register employees in Ergani before their start date carries penalties of €10,500 per unregistered employee. AADE cross-references tax withholding reports against Ergani registrations automatically.
Misclassifying tax residency for international hires leads to incorrect withholding. If someone becomes resident mid-year and you've been withholding as a non-resident, you'll need to recalculate and remit the difference immediately.
Audit trigger alert
AADE's automated systems flag discrepancies between F2 monthly filings and F1 annual reconciliation. Differences over 5% typically trigger desk audits within 90 days.
Not providing employee tax certificates on time results in €100 penalties per employee per month of delay. The March 15 deadline is firm—employees need these for their personal tax returns.
Employer contributions in Greece
The biggest employer cost in Greece? Social security contributions at 24.81%. That's before you add pension, unemployment, and other mandatory contributions that push your total burden well above 30% of gross salary.
Contribution breakdown
Here's what you'll pay on every salary in 2027:
| Contribution Type | Employer Rate | Employee Rate | Cap (if any) |
|---|---|---|---|
| Social Security (IKA) | 24.81% | 16.00% | €7,945.92/month (€95,351/year) |
| Unemployment Insurance | 1.33% | 0.43% | Same as social security |
| Employment Housing Fund (OEK) | 0.45% | 0.50% | Same as social security |
| Auxiliary Pension (ETEA) | 6.67% | 6.67% | Same as social security |
| Total Mandatory | 33.26% | 23.60% | - |
The social security cap matters more than you'd think. For 2027, contributions stop accruing on monthly earnings above €7,945.92. This creates a significant cost advantage when hiring senior employees.
| Employee pays | Employer pays | |
|---|---|---|
| Social Security | 16.00% | 24.81% |
| Unemployment | 0.43% | 1.33% |
| Housing Fund | 0.50% | 0.45% |
| Auxiliary Pension | 6.67% | 6.67% |
Total employer cost example
For a €60,000 annual salary, your actual cost breaks down like this:
- Base salary: €60,000
- Social security (24.81%): €14,886
- Unemployment (1.33%): €798
- Housing fund (0.45%): €270
- Auxiliary pension (6.67%): €4,002
- Total employer cost: €79,956
- Cost multiplier: 1.33 (you pay 33% more than base salary)
This 33% burden applies consistently across most salary levels. The contribution cap only kicks in at €95,351 annually, so it won't affect your mid-level hires.
Contribution caps and ceilings
All mandatory contributions share the same ceiling: €7,945.92 per month or €95,351 annually in 2027.
Once an employee's earnings exceed this cap, you stop paying contributions on the excess. For someone earning €120,000 annually, you'll only pay contributions on €95,351. This saves you approximately €8,155 in employer costs.
High earners still receive the same social security benefits as those at the cap. There's no proportional increase for higher contributions because you're not making them.
Registration requirements
You'll need to register with three agencies before your first payroll:
EFKA (Unified Social Security Fund) - Register within 8 days of hiring your first employee. You'll need your Greek tax registration number, business registration documents, and employment contracts. EFKA issues your employer insurance number, which you'll use for all contribution payments.
OAED (Manpower Employment Organization) - Register simultaneously with EFKA. This covers unemployment insurance and requires the same documentation. You'll receive a separate OAED employer number.
ELKE (Auxiliary Insurance Fund) - Registration happens automatically through EFKA for most employers. You'll use your EFKA credentials to access the ELKE system.
Registration documents needed
- Greek tax registration number (AFM)
From tax authority
- Business registration certificate
From GEMI registry
- Employment contracts
Signed originals
- Company bank account details
For direct debit setup
- Authorized signatory documentation
Power of attorney if applicable
Payment deadlines
All contributions are due by the last working day of the month following the pay period. Pay January salaries? Contributions are due by February 28, 2027.
EFKA operates a unified collection system. You'll make one payment that covers social security, unemployment, housing fund, and auxiliary pension. The system automatically allocates your payment across all funds.
Late payments trigger immediate penalties. You'll pay 2% interest for the first month, then 1% for each additional month. These penalties compound monthly and aren't negotiable.
Critical payment timing
Submit your monthly declaration (APA) by the 10th of the following month. Payment is due by the last working day. Missing either deadline triggers penalties and potential inspection.
EFKA requires monthly declarations (APA forms) by the 10th of the following month. This declaration precedes your payment and details each employee's earnings and contribution calculations. You can't make your payment without filing the declaration first.
Set up direct debit through EFKA's Ergani system. Manual payments often fail due to incorrect allocation codes, and EFKA won't accept "we paid the wrong way" as an excuse for late payment penalties.
Skip the complexity. We manage tax calculations, contributions, and compliance in 150+ countries.
Leave and benefits in Greece
Maternity leave in Greece is 43 weeks at varying rates of pay. Here's how it affects your payroll.
The basic entitlement splits into prenatal (8 weeks) and postnatal (35 weeks) leave. Employees receive 50% of their daily earnings from social security (EFKA), not from your payroll. You don't pay wages during this period, but you do need to coordinate with EFKA and maintain accurate records.
For multiple births, add 14 extra days per additional child. Adoptive mothers get 43 weeks from the date of adoption if the child is under 6 years old.
Annual leave
Greek employees get a minimum of 20 working days of paid annual leave per year. That's four weeks you need to factor into your payroll planning.
The entitlement increases with service length. After one year with the same employer, it jumps to 21 days. After 10 years, employees get 25 days. After 25 years of service (with any employer), they're entitled to 26 days.
How vacation pay is calculated
Vacation pay equals the employee's regular daily wage. Calculate it by dividing their monthly gross salary by 25 (the standard number of working days per month in Greece).
For employees with variable pay, use the average daily earnings from the previous 12 months. Include all regular payments like bonuses and allowances that would normally be paid during that period.
Carryover and payout rules
Employees must take their annual leave within the calendar year. Carryover to the next year requires written agreement between employer and employee, and the carried-over days must be used within the first four months of the following year.
If employment ends, you must pay out all unused annual leave. Calculate the payout at the employee's current daily rate, regardless of when the leave was earned. This payment appears as a separate line item on the final payslip and is subject to normal tax and social security contributions.
Track leave accurately
Unpaid leave claims are common in Greece. Keep detailed records of leave requests, approvals, and actual days taken. Your payroll system should flag when employees haven't used their minimum entitlement.
Sick leave
Greek employees can take sick leave for up to 12 months within a two-year period. The payment structure shifts between employer and social security depending on the duration.
For the first three days of illness, you don't pay anything. These are unpaid waiting days. From day 4 to day 15, you pay 50% of the employee's regular wages. After day 15, EFKA takes over and pays sickness benefits directly to the employee.
Certification requirements
Employees need a medical certificate from day one of absence. For absences up to three days, a certificate from any registered doctor works. For longer absences, they need certification from a social security doctor (IKA doctor) or a hospital.
Submit the medical certificate to EFKA within three working days of receiving it. Late submission can delay or invalidate the employee's claim for social security sickness benefits.
Impact on payroll calculations
During days 4-15, calculate 50% of the employee's daily wage and include it in your regular payroll. This payment is subject to normal tax withholding but exempt from social security contributions.
After day 15, remove the employee from your payroll calculations entirely. EFKA handles all payments directly. Keep them on your records as on sick leave, but don't process any wage payments unless they return to work.
Parental leave
Maternity leave details
The 43-week maternity leave breaks down into specific periods. Eight weeks must be taken before the expected birth date. The remaining 35 weeks follow the birth.
EFKA pays 50% of daily earnings for the first 43 weeks. For the next 8 weeks (weeks 44-51), mothers can take unpaid leave with job protection. Some collective agreements provide better terms, so check applicable agreements for your industry.
Submit the maternity notification to EFKA at least 8 weeks before the expected birth date. Include the medical certificate confirming pregnancy and expected delivery date.
Paternity leave
Fathers get 14 working days of paid paternity leave. You must take 2 days within the first week after birth. The remaining 12 days can be taken anytime within the first year.
You pay the full salary during paternity leave. This appears on your regular payroll and is subject to all normal tax and social security contributions. There's no reimbursement from EFKA for paternity leave costs.
Parental leave
Both parents can take up to 4 months of unpaid parental leave per child until the child turns 8 years old. This leave can be taken in blocks of at least one month. It doesn't affect payroll calculations since it's unpaid, but you need to maintain employment records accurately.
Special parental provisions
Single parents get double the parental leave entitlement (8 months instead of 4). Parents of children with disabilities can take extended leave with specific certification from medical authorities.
Public holidays 2027
Greece has 12 official public holidays in 2027. Work performed on these days requires double pay plus a compensatory day off, or triple pay if no compensatory day is given.
| Date | Holiday | Notes |
|---|---|---|
| January 1 | New Year's Day | Fixed |
| January 6 | Epiphany | Fixed |
| March 1 | Clean Monday | Movable (Orthodox Easter) |
| March 25 | Independence Day | Fixed |
| April 16 | Good Friday | Movable (Orthodox Easter) |
| April 18 | Easter Sunday | Movable (Orthodox Easter) |
| April 19 | Easter Monday | Movable (Orthodox Easter) |
| May 1 | Labour Day | Fixed |
| June 7 | Whit Monday | Movable (50 days after Easter) |
| August 15 | Assumption of Mary | Fixed |
| October 28 | Ochi Day | Fixed |
| December 25 | Christmas Day | Fixed |
| December 26 | Glorifying Mother of God | Fixed |
Regional and local holidays
Some regions observe additional local holidays, particularly patron saint days. Athens celebrates June 29 (Saints Peter and Paul), Thessaloniki celebrates October 26 (Saint Demetrios). Check with local authorities for your specific location.
These local holidays don't create a legal obligation for time off, but many collective agreements include them. If your collective agreement covers regional holidays, treat them the same as national public holidays for payroll purposes.
Holiday pay calculations
Calculate holiday pay at the employee's regular daily rate. For shift workers or those with variable schedules, use the average daily earnings from the previous month.
If a public holiday falls on a weekend, employees don't get a substitute day off unless specified in their employment contract or collective agreement. The holiday pay obligation only applies if the employee would normally work that day.
Mandatory benefits affecting payroll
Social security coverage
EFKA coverage is mandatory and funded through the payroll contributions covered in the employer contributions section. This provides healthcare, pensions, unemployment benefits, and sickness pay. You don't make separate deductions beyond the standard social security contributions.
Supplementary pension funds
Many industries require membership in supplementary pension funds (Tameio) on top of basic EFKA contributions. These vary by sector and collective agreement.
Common supplementary funds include ETEAM (retail employees), TEADY (bank employees), and TSMEDE (engineers). Contribution rates typically range from 3% to 6% of gross salary, split between employer and employee.
Check your industry's collective agreement to identify which supplementary fund applies. Register employees within 8 days of their start date.
Christmas, Easter, and summer bonuses
Greek law requires three mandatory bonuses each year, calculated as portions of monthly salary. These aren't optional perks—they're legal obligations that affect your annual payroll costs.
Christmas bonus: One month's salary, paid by December 31. For employees who worked less than a full year, prorate based on days worked.
Easter bonus: Half a month's salary, paid before Greek Orthodox Easter (
Compliance requirements in Greece
Greece requires you to keep payroll records for 10 years. Lose them and face penalties up to €10,000 per audit violation, plus potential criminal liability for the employer's legal representative.
The country's labor inspectorate (SEPE) conducts both scheduled and surprise audits, with particular focus on undeclared work and social security compliance. Here's what you need to file and when.
Record retention is serious
Greece mandates 10-year retention for all payroll documentation. This includes contracts, payslips, attendance records, and social security filings. Digital storage is acceptable if records remain accessible and unalterable.
Monthly filing requirements
You'll submit the Analytical Periodic Declaration (APD) to EFKA (the unified social security fund) by the last working day of each month for the previous month's payroll. This filing reports all employees, their earnings, and calculates social security contributions due.
The APD must be filed through the EFKA online portal (www.efka.gov.gr). You'll need a valid TaxisNet account with appropriate authorization. The system generates payment vouchers that you'll use to pay contributions.
Payment of social security contributions is due by the same deadline as the APD filing. Late payment triggers automatic penalties of 0.73% per month (8.76% annually) plus interest calculated daily.
Monthly withholding tax on employee salaries must be paid to the tax authority by the last working day of the following month. You'll use the myAADE portal (www.aade.gr) for electronic payment. There's no separate monthly filing - just payment based on your payroll calculations.
Monthly compliance cycle
Process payroll
Throughout the monthCalculate gross pay, deductions, and net pay
Issue payslips
Payment dateProvide to employees before payment
Submit APD to EFKA
Last working dayReport all employees and contributions
Pay social security
Last working dayTransfer EFKA contributions
Pay withholding tax
Last working dayTransfer employee tax to myAADE
Penalties for monthly violations
Late APD filing carries penalties starting at €500 per month of delay, regardless of company size. If you file more than 30 days late, the penalty increases to €1,000.
Underpayment or non-payment of social security contributions results in the 0.73% monthly surcharge plus potential criminal charges against company directors for amounts exceeding €50,000. EFKA can also place liens on company assets and bank accounts.
Missing the withholding tax payment deadline triggers penalties of 1.5% of the unpaid amount for the first month, then an additional 0.73% for each subsequent month. Tax authorities can issue immediate collection orders and freeze bank accounts for repeated violations.
Annual reporting
The Annual Reconciliation Declaration (ARD) must be submitted to EFKA by March 31, 2027 for the 2026 payroll year. This reconciles all monthly APD filings and adjusts for any annual caps on social security contributions.
You'll also file the Annual Employer Declaration through myAADE by March 31, 2027, reporting total compensation paid to each employee during 2026. This includes salaries, bonuses, benefits-in-kind, and any other taxable payments.
Employee tax certificates (Form E1) must be issued to all employees by March 1, 2027. These certificates detail total earnings, tax withheld, and social security contributions for the employee's personal tax return. You'll submit copies electronically to the tax authority through myAADE.
The deadline for employees to file their personal income tax returns is June 30, 2027. While this isn't your direct responsibility, employees will need the certificates you provide to complete their returns.
Year-end adjustments
If annual social security contributions exceed the maximum insurable earnings cap (€93,720 for 2027), you'll calculate refunds or adjustments through the ARD. EFKA typically processes these adjustments within 60-90 days of filing.
Any errors in monthly filings discovered during year-end reconciliation must be corrected through amended APD submissions. You can file amendments for up to three years, but late payment penalties still apply to any additional contributions owed.
Year-end compliance checklist
- Complete annual payroll reconciliation
Verify all monthly filings match actual payments
- Issue Form E1 to all employees
Deadline: March 1, 2027
- Submit Annual Employer Declaration
Due March 31, 2027 via myAADE
- File Annual Reconciliation Declaration
Due March 31, 2027 via EFKA portal
- Calculate and process contribution adjustments
For employees exceeding annual caps
- Archive all payroll records
10-year retention requirement
Employee documentation
Every employment relationship in Greece requires a written employment contract signed by both parties. The contract must be in Greek (translations are acceptable for foreign employees, but the Greek version is legally binding) and registered with ERGANI, the labor ministry's electronic system, before or on the employee's first day of work.
Contracts must specify: job title and duties, workplace location, salary and payment frequency, working hours, probation period (if any), notice periods, and applicable collective bargaining agreement. Missing any mandatory element can invalidate the contract and expose you to fines of €3,000-€5,000 per employee.
Payslips must be issued to employees before or on the payment date each month. Greece mandates specific payslip elements: employer details (name, tax number, EFKA registration), employee details (name, tax number, social security number), pay period, gross salary breakdown, all deductions itemized, net pay, and employer social security contributions.
You must provide payslips in Greek. Electronic payslips are acceptable if employees can access, download, and print them. Failure to provide compliant payslips carries penalties of €1,000 per violation per employee.
ERGANI system requirements
Beyond contract registration, you'll report several events through ERGANI:
Hiring notifications must be submitted before the employee starts work. Late notifications trigger fines of €10,500 per employee for first violations, doubling to €21,000 for repeat offenses within three years.
Contract modifications (salary changes, position changes, hour adjustments) require ERGANI updates within five working days. You'll also report contract suspensions, terminations, and returns from leave.
Overtime and flexible working arrangements must be declared in ERGANI before employees work the hours. Pre-declaration is mandatory - retroactive reporting isn't accepted and results in fines plus potential undeclared work penalties.
Record retention requirements
Keep all payroll records for 10 years from the end of the calendar year they relate to. This includes: employment contracts and amendments, payslips, time and attendance records, leave records, social security filings, tax withholding calculations, and payment proof.
Records must be available for inspection within 24 hours of a labor inspectorate request. Inability to produce records during an audit results in penalties of €2,000-€10,000 depending on the severity and number of missing documents.
Digital storage is acceptable but records must be maintained in unalterable format. You'll need to demonstrate data backup procedures and ensure records remain accessible throughout the 10-year period.
Foreign language contracts
While contracts must be in Greek, you can provide translated versions for foreign employees. However, only the Greek version has legal standing in disputes. Consider having foreign employees acknowledge they understand the Greek terms or have received professional translation.
Penalties and violations
| Violation | Penalty | Notes |
|---|---|---|
| Late APD filing (social security) | €500-€1,000 | €500 for delays under 30 days; €1,000 after 30 days |
| Late social security payment | 0.73% per month | Compounds monthly; criminal charges possible over €50,000 |
| Late withholding tax payment | 1.5% first month, then 0.73% monthly | Plus daily interest calculation |
| Missing/invalid employment contract | €3,000-€ |
Managing Greece payroll compliance in-house? See how we simplify it
Recent changes in Greece
Using 2026 tax brackets? You're withholding incorrectly. Here's what changed.
Greece updated its tax structure and minimum wage for 2027, affecting how you calculate take-home pay. If you haven't adjusted your payroll system yet, you're likely under-withholding taxes.
Minimum wage increase - Effective January 1, 2027
The gross monthly minimum wage increased to €830, up from €810 in 2026. That's a 2.5% increase, which translates to €9,960 annually for full-time employees.
This applies to all employees working standard 40-hour weeks. Part-time employees receive proportional amounts based on hours worked.
Action required: Update your payroll system to reflect the new minimum. Review all salaries below €900 monthly to confirm compliance, especially for part-time staff whose hourly rates may need adjustment.
Tax bracket adjustments - Effective January 1, 2027
Greece modified its personal income tax brackets for 2027, slightly increasing the thresholds for the middle brackets:
| Annual Income (€) | Tax Rate | Change from 2026 |
|---|---|---|
| Up to €10,000 | 9% | No change |
| €10,001 - €20,000 | 22% | No change |
| €20,001 - €30,000 | 28% | Threshold increased from €28,000 |
| €30,001 - €40,000 | 36% | New bracket |
| Over €40,000 | 44% | No change |
The new €30,001 - €40,000 bracket provides modest relief for middle-income earners. Previously, income above €28,000 jumped directly to the 36% rate.
Impact on employers: Recalculate withholding for all employees earning between €20,000 and €45,000 annually. The changes are small but affect net pay calculations.
Payroll system update deadline
Configure new tax brackets before your first 2027 payroll run. Most systems require manual updates—automatic tax table updates don't always capture Greece-specific changes on time.
Social security contribution rates - No changes
Good news: employer and employee social security contribution rates remain unchanged for 2027. Employers still contribute 24.81% of gross salary, and employees contribute 15.33%.
The contribution ceiling stays at €7,126.07 monthly (€85,512.84 annually). You won't pay contributions on earnings above this threshold.
Digital payslip mandate - Effective March 1, 2027
All employers must now provide payslips through the government's myDATA digital platform. Paper payslips no longer satisfy legal requirements, even if employees request them.
This extends the myDATA system beyond invoicing to include mandatory payroll reporting. Each payslip must be uploaded within three business days of payment.
Action required: Register your company on the myDATA platform if you haven't already. Confirm your payroll software can generate compliant XML files for automatic upload. Manual uploads work for small teams but become impractical above 15 employees.
Penalties: €500 per unreported payslip for the first offense, doubling for subsequent violations. The Labour Inspectorate cross-references bank transfers with myDATA submissions during audits.
myDATA payroll compliance checklist
- Register company on myDATA portal
Requires TAXIS credentials
- Verify payroll software supports myDATA XML export
Contact your vendor for compatibility
- Test upload process with January 2027 payroll
Allow 5 business days for troubleshooting
- Train payroll staff on upload procedures
Designate a backup person
Upcoming changes - Summer 2027
Greece plans to introduce mandatory electronic time tracking for all employees by July 1, 2027. The legislation passed in December 2026 but implementation was delayed to give employers time to adopt systems.
You'll need to record daily start times, end times, and breaks through an approved digital system. Manual timesheets won't comply. The government will publish a list of approved vendors by April 2027.
Preparation needed: Budget for time tracking software if you don't have it. Expect costs between €3-€8 per employee monthly for basic systems. Enterprise solutions with advanced features run higher but may integrate better with existing payroll software.
Frequently asked questions about payroll in Greece
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Regulations change frequently, so always consult with local experts and official government sources for your specific situation.