Payroll 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.

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 Christmas bonus is one month's salary for the full May to December reference period. The Easter bonus is half a month's salary for the January to April period. The annual-leave allowance is capped at half a month's salary and is paid in advance at the start of leave.

Payment Type	Amount	Payment Schedule	Tax Treatment
Christmas bonus	One month's salary	Before Christmas	Taxed as regular income
Easter bonus	Half a month's salary	Before Easter	Taxed as regular income
Annual-leave allowance	Up to half a month's salary	At the start of leave	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.

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. Shorter eligible service is prorated against each bonus's reference period.

How does vacation pay work?

Greek employees earn 20 working days of paid annual leave on a five-day week in their first year, rising to 22 after two completed years. 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.

Holiday pay during vacation

Greece also requires a separate annual-leave allowance, capped at half a month's salary or 13 daily wages. Leave pay and the allowance are paid in advance at the start of leave.

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.

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.

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.

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 income tax is progressive across six brackets following the reform in force since 1 January 2026.

Income tax brackets

Greece applies a progressive income tax system to employment income. The rates in force from 1 January 2026, after the Law 5246/2025 reform, are:

Annual Income (€)	Tax Rate
€0 - €10,000	9%
€10,001 - €20,000	20%
€20,001 - €30,000	26%
€30,001 - €40,000	34%
€40,001 - €60,000	39%
Over €60,000	44%

If your payroll still runs the pre-2026 ladder (22/28/36 in the middle bands, with everything above €40,000 at 44%), you are over-withholding on most salaries.

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.

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 2026 payroll, you'll file by February 28, 2026. Payment must accompany the declaration—there's no separate grace period.

Annual reconciliation happens through Form F1, due by March 31, 2027 for the 2026 tax year. This reconciles total withholdings against actual tax liability. Any underpayment creates immediate employer liability plus interest.

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 2026.

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.

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 that year.

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 offers a 50% income tax reduction for certain foreign tax residents who relocate to Greece and meet the qualifying conditions. 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 applies penalties for late filing, plus interest on unpaid tax. Repeated late filings increase the risk of a 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 heavy penalties. 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.

Not providing employee tax certificates on time results in penalties. The March 15 deadline is firm—employees need these for their personal tax returns.

The biggest employer cost in Greece is social security. Employer contributions to EFKA run at 21.79% of gross salary, and that single rate is the all-in figure — pension, health and unemployment cover are components inside it, not extras stacked on top. Employees contribute a further 13.37% from their own gross pay.

Contribution breakdown

Here's what you'll pay on every salary in 2026:

Contribution	Employer Rate	Employee Rate	Cap
EFKA social security (all-in)	21.79%	13.37%	€7,761.94/month

Greece collects social security as one unified EFKA contribution rather than as separate line items you add together. Pension, health cover and unemployment insurance are all funded from within the rates above, so 21.79% is the total employer cost of contributions on a salary, not a starting point. Any provider quoting you a Greek employer burden above 30% is either double-counting these components or bundling in its own fee.

The social security cap matters more than you'd think. From 1 January 2026, contributions stop accruing on monthly earnings above €7,761.94. This creates a significant cost advantage when hiring senior employees.

Total employer cost example

For a €60,000 annual salary, your actual cost breaks down like this:

• Base salary: €60,000
• Employer EFKA contributions (21.79%): €13,074
• Total employer cost: €73,074
• Cost multiplier: 1.22 (you pay about 22% more than base salary)

Unemployment, health and auxiliary pension cover are funded from inside that 21.79%, so they are not separate line items to add on top. At €60,000 the salary works out to €5,000 a month, well under the €7,761.94 monthly ceiling, so the cap does not reduce the figure here. Statutory bonus pay is separate: Greek employees are owed 14 salary instalments a year, which is the larger driver of total cost at this level.

Contribution caps and ceilings

All mandatory contributions share the same ceiling: €7,761.94 of monthly earnings, from 1 January 2026. The ceiling is applied per pay period rather than as an annual total.

Once an employee's monthly earnings exceed the cap, you stop paying contributions on the excess. For someone on €10,000 a month, €2,238.06 of each month's pay sits above the ceiling, so at the 21.79% employer rate you pay about €488 a month less than you would if contributions ran on the full salary.

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 before 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.

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, 2026.

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 penalties and interest from EFKA.

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.

Maternity leave in Greece is 17 weeks, followed by nine months of special maternity protection for eligible mothers. Here's how it affects your payroll.

The basic entitlement splits into prenatal (8 weeks) and postnatal (9 weeks) leave. If the birth is early, unused prenatal leave moves after the birth. Payments come from e-EFKA and DYPA, assessed separately from your payroll. You don't pay wages during this period, but you do need to coordinate with EFKA and maintain accurate records.

Eligible adoptive and surrogate mothers receive the postnatal portion, and the 2025 reform extended it to qualifying foster mothers of children up to eight.

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 two completed years it rises to 22 days. After 10 years with the same employer, or 12 years' total service, 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.

Sick leave

After at least ten days of work, an employee off sick keeps their wages for up to 15 days in the first year of service, or one month after that, measured by the employment year.

For the first three days of illness, you pay half pay. For the rest of the wage-retention period, the e-EFKA sickness benefit can be offset against what you owe.

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

Once the wage-retention period ends, e-EFKA benefit eligibility and duration are assessed separately from your payroll.

Parental leave

Maternity leave details

The 17-week maternity leave breaks down into specific periods: eight weeks before the expected birth and nine weeks after it.

After it, eligible employed mothers can receive nine months of special maternity protection, paid by DYPA at a benefit linked to the statutory minimum wage. Up to seven of those months can be transferred to the father. 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. He can take 2 days before the expected birth and 12 within 30 days after it, or take the whole allowance after the birth.

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

Each parent has an individual, non-transferable four-month parental-leave entitlement until the child turns eight, normally after one year with the employer. DYPA funds the first two months at the statutory minimum wage, so they do not run through your payroll.

Public holidays

Work performed on a Greek public holiday requires double pay plus a compensatory day off, or triple pay if no compensatory day is given. Several of the dates move each year with Orthodox Easter, which does not track the Western Easter date, so confirm the current year's calendar against the official schedule before you close a payroll run that spans one.

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). Under the ordinary KPK 101 package, auxiliary cover is already inside the 21.79% employer and 13.37% employee rates.

Check your industry's collective agreement to identify which supplementary fund applies. Declare every hire in ERGANI II before work begins.

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 before Christmas. 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 (

Greece requires you to keep payroll records for 10 years. Lose them and face penalties, 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.

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 penalties plus interest.

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.

Penalties for monthly violations

Late APD filing carries penalties from EFKA.

Underpayment or non-payment of social security contributions results in late-payment charges plus potential criminal charges against company directors. EFKA can also place liens on company assets and bank accounts.

Missing the withholding tax payment deadline triggers penalties on the unpaid amount. 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 contributions have been collected on earnings above the monthly ceiling during the year, 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.

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.

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.

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 heavy fines, and repeat offenses are treated more seriously.

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.

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.

Penalties and violations

Penalties apply for late filing, late payment and incorrect withholding. They are set by AADE, EFKA and the Labour Inspectorate, so check the current schedule on its website before relying on a figure.