Greece mandates a set of employee benefits to support the welfare, health, and financial security of its workforce. Governed by Greek labor laws, these benefits are compulsory, making compliance essential for companies operating in Greece. Employers using Employer of Record (EOR) or Professional Employer Organization (PEO) services will find these benefits valuable in ensuring adherence to Greece’s labor standards.
1. Social Security Contributions (Κοινωνική Ασφάλιση)
Description: Social security in Greece includes health insurance, pension contributions, unemployment insurance, and other welfare benefits. Both employers and employees contribute, covering retirement, medical needs, unemployment, and maternity leave.
| Contribution Type | Employer Contribution | Employee Contribution | Coverage |
|---|---|---|---|
| Health & Pension Insurance | 13.33% | 6.67% | Retirement, health benefits |
| Unemployment Insurance | 2.41% | 1.67% | Unemployment assistance |
| Supplementary Pension Fund | Variable | Variable | Additional pension provisions |
Outcome: Social security contributions ensure comprehensive coverage for health services, retirement income, unemployment support, and other essential benefits for employees.
2. Paid Annual Leave
Description: In Greece, employees are entitled to paid annual leave based on their length of service, typically starting at 20 days per year for a 5-day work week and increasing with seniority.
Outcome: Paid leave allows employees to take time off for rest and personal matters while preserving income stability, promoting a balanced work-life structure.
3. Maternity and Paternity Leave
Description: Greek law grants generous leave to parents, supporting family well-being.
- Maternity Leave: Female employees receive 17 weeks of paid leave, with 8 weeks before birth and 9 weeks after.
- Paternity Leave: Fathers are entitled to 14 days of paid paternity leave, which can be taken within the first month of the child’s birth.
Outcome: These leave policies help parents care for their newborns without financial strain, fostering a supportive work environment for families.
4. Sick Leave
Description: Employees are entitled to sick leave, with payment depending on their length of absence and whether they have a social security benefit.
| Sick Leave Duration | Payment Policy |
|---|---|
| Up to 3 days | Paid by employer |
| 4+ days | Paid by social security fund |
Outcome: This system allows employees to recover from illness without losing income, maintaining health and productivity standards in the workplace.
5. Severance Pay
Description: In Greece, employees are entitled to severance pay upon termination, with the amount varying based on years of service. This is a critical protection against sudden income loss.
Outcome: Severance pay serves as a financial cushion during transition periods, ensuring employees have time to seek new opportunities.
6. Public Holidays
Description: Greece observes numerous public holidays. Employees are entitled to time off on these days, or additional pay if they work on a holiday.
- Key holidays include:
- New Year’s Day
- Independence Day (March 25)
- Easter Monday
- Christmas Day
Outcome: Observing public holidays supports work-life balance and cultural observance, benefiting both employees and employers.
7. Christmas Bonus (Δώρο Χριστουγέννων)
Description: Greek labor law requires employers to provide a Christmas bonus, equivalent to one month’s salary, paid by December 21. This bonus is separate from regular wages and supports employees financially during the holiday season.
Outcome: The Christmas bonus provides employees with additional financial security, particularly around the holiday season, supporting personal and family spending.
8. Extra Legal Benefits
Description: Many Greek companies offer additional benefits, such as meal allowances, transportation benefits, and training programs. While not legally required, these benefits are popular and often used to attract and retain talent.
Outcome: Extra benefits improve job satisfaction, contributing to talent retention and increased productivity.
Managing Benefits with EOR/PEO Services
Using EOR/PEO services, like GlobainePEO, simplifies the administration of Greece’s mandatory employee benefits. These providers handle payroll, social security contributions, leave entitlements, and other HR functions, ensuring that businesses remain compliant with Greek labor regulations.
Final Thoughts
The mandatory employee benefits in Greece reflect a strong commitment to employee well-being and financial security. Companies that understand and meet these obligations can foster a supportive and compliant work environment, building employee loyalty and satisfaction. Partnering with EOR/PEO services helps ensure seamless compliance, allowing businesses to focus on core operations with confidence, knowing their employees are receiving the benefits they are entitled to.
GlobainePEO – Your Trusted Partner in Greece
At GlobainePEO, we simplify Greece’s employee benefits management, ensuring full compliance with local labor laws. We oversee essential benefits like health insurance, pension contributions, severance pay, and maternity/paternity leave, allowing you to focus on business growth while we protect your employees’ welfare and legal rights. Let us manage your employee benefits in Greece with confidence.