Companies typically use an Employer of Record for fast entry, payroll management for existing entities, and entity setup for durable presence. Greece's three statutory extra salary payments (Christmas, Easter, and summer bonuses) and the ERGANI reporting system are the features requiring the most careful planning.

Employer of Record in Greece

An EOR removes the need to register with EFKA (the unified social security fund) and manage the extra statutory salary payments built into Greek compensation structures. It suits early hires and companies testing the Greek market; it is less suited to established entities. The ERGANI reporting system — which requires near-real-time registration of employment relationships and schedule changes — is another area where an EOR's existing infrastructure provides immediate compliance.

How payroll works in Greece

Greek payroll withholds income tax at progressive rates and both employer and employee contribute to EFKA, covering pension, health, and unemployment insurance. By law, employees receive extra payments beyond twelve monthly salaries: a Christmas bonus (full month's salary, paid by December 21st), an Easter bonus (half month's salary, paid by Holy Wednesday), and a summer/holiday bonus (half month's salary, paid by July 15th). Together these function like a 14th-month structure and are firm statutory requirements, not discretionary payments. Payroll is monthly.

Payroll frequency and reporting obligations

Monthly payroll is standard, with EFKA contributions remitted monthly through the ERGANI system, which also tracks employment relationships and working time. The Christmas, Easter, and summer bonuses are paid at their respective statutory deadlines. ERGANI requires employers to register new employment relationships, terminations, and schedule changes in near-real-time — delays or inaccuracies in ERGANI reporting result in penalties. Annual tax reconciliation is required for most employees.

Key payroll nuances

The three extra statutory payments (Christmas, Easter, and summer bonuses) are a firm legal requirement equivalent to roughly two extra monthly salaries per year combined, and must be budgeted as certain annual cost rather than discretionary bonuses. Employer EFKA contributions are substantial — over 22 percent on top of gross salary — and when the extra payments are included, total employer cost is materially above a simple twelve-times-salary calculation. ERGANI reporting requires accurate, near-real-time tracking of employment relationships and schedule changes, making payroll administration more time-sensitive than in many other markets.

Pay components and employer costs

Typical pay components include base salary plus the three statutory extra payments (Christmas, Easter, and summer bonuses). Employer EFKA contributions commonly add over 22 percent on top of gross salary. When the extra payments are factored in, total employer cost is equivalent to approximately 14 months of salary plus the EFKA load — a significant budget item that needs explicit modelling rather than a simple percentage estimate.

Benefits and leave entitlements

Statutory annual leave is 20 working days (5-day week), rising with tenure. Sick leave is covered by EFKA after the first three days, which are employer-funded. Maternity leave is 17 weeks. Paternity leave is a separate statutory entitlement. Public holidays number around 12 to 13 nationally, with some regional variations. The EFKA system provides Greece's core pension, health, and unemployment insurance coverage.

Hiring and employment contracts

Written contracts are standard and must be registered through ERGANI before the employee starts work. Probation periods are capped at 12 months by recent labour reform — a notably long window by European standards. Fixed-term contracts are capped in duration and renewal count before conversion risk arises. Termination of indefinite-term employees requires notice (calculated by tenure) and must follow the Labour Code's specific procedural requirements.

Entity setup in Greece

The Ιδιωτική Κεφαλαιουχική Εταιρεία (IKE, Private Capital Company) is a common flexible structure for foreign employers, with minimal capital requirements (as low as €1). Registration is completed through the General Commercial Registry (GEMI), followed by EFKA registration and ERGANI access before hiring. End-to-end setup typically takes six to eight weeks.

EOR vs Payroll Management vs Entity Setup — Greece

Frequently asked questions