Countries
Pay in Greece
Pay employees in Greece
Greece, which nearly defaulted on its public debt in 2010, overhauled its fiscal policy to meet the obligations of the European Union’s austerity plan. Because fiscal policy changes are ongoing, local legislative expertise is critical to processing payroll in Greece.
Administrating timely, accurate and compliant payroll in Greece requires a deep understanding of local tax, reporting, employment and compensation requirements. With our payroll solutions, you can count on in-country expertise and support to help ensure your workers in Greece are paid correctly, compliantly and on time - every time.
Taxes, employee compensation and benefits
Our local experts provide up-to-date guidance on the specific tax legislation, compensation requirements and benefits expectations for processing payroll in Greece.
- Corporate, income and regional taxes
- Social taxes, including pensions, healthcare and unemployment
- Compensation for holidays, vacation and various types of leave
- Other withholdings and employer contributions
We administer payroll in various ways:
- EOR, our employer of record solution that allows you to employ and pay international workers even if you don’t have a local entity
- Global Pay, our local payroll solution for your operations in a specific country
Taxes for payroll in Greece
Corporate tax
Entities in Greece must pay a corporate income tax of 22% on annual profits.
Income tax
Employee income tax in Greece is assessed on a progressive scale, with rates ranging from 9% to 45% depending on annual income. Income tax brackets are:
- €0 – €10,000: 9%
- €10,001 – €20,000: 22%
- €20,001 – €30,000: 28%
- €30,001 – €40,000: 36%
- €40,001 and higher: 44%
Employers are required to withhold income tax and remit them to the Greek tax control authority, Eforia, by the 20th day of each month. Employers who file late taxes or file taxes incorrectly may face fines or criminal proceedings.
Social Taxes
The social security agency in Greece, known as the e-National Social Security Fund (e-EFKA), administers retirement, sickness, industrial injury, unemployment and maternity benefits, as well as the national health insurance system. e-EFKA coverage generally begins on the first day of employment.
e-EFKA contributions are divided between the employer and employee. Employers must contribute about 26% of an employee’s gross salary toward social security. The employee rate for social insurance contributions is about 16%. The e-EFKA social contributions include:
- Pension: 13.3% for employers; 6.67% for employees
- Supplementary pension: 3.25% each for employers and employees (will reduce to 3% effective June 1, 2022)
- Healthcare: 4.3% for sickness and 0.25% for cash benefits for employers; 2.15% for sickness and 0.4% for cash benefits for employees
- Unemployment: 2.69% for employers and 1.83% for employees
- Professional risk: 1% for employers only
- High occupational risk (dependent on industry): 1.4% for employers; 2.2% for employees
Employers are required to pay e-EFKA contributions, including those withheld from employee paychecks, by the last business day of each month. Employers who do not file social taxes, or file them late or incorrectly, are subject to fines of 10% to 50% of their monthly contributions.
Solidarity tax
Prior to 2023, Greece imposed a special solidarity contribution on tax-liable individuals with annual income in excess of €12,000.
The special solidarity contribution was repealed for income acquired from Jan. 1, 2023. Effective for 2021 and 2022, employment income was exempted from the solidarity contribution.
Updated: 27.09.2023
Employee compensation and benefits in Greece
In Greece, the Ministry of Labor and Social Security oversees employment practices and is charged with enforcing labor laws, maintaining industrial stability, conducting industrial training, and promoting the health and safety of employees.
When processing payroll in Greece, you’ll need to consider the following employment regulations:
Partner with Safeguard Global for your payroll in Greece
Hundreds of organizations depend on our global payroll experts to ensure their payroll processing is accurate and compliant with local tax and employment requirements.
We support payroll in Greece in various ways: through our employer of record solution, as a local payroll provider for your Greek operations, and as part of a managed provider solution for your global organization.
As an employer of record in Greece, we handle payroll for your Greek workers, ensuring accuracy and compliance, while you manage their day-to-day contributions.
As a local provider of payroll in Greece, we can help your Greek operations:
- Comply with Greek labor laws and regulations
- Deduct the appropriate tax and social security withholdings
- Ensure your employees in Greece are paid accurately and on time
As a global payroll provider, we offer streamlined processing across countries, currencies, languages and time zones—with streamlined processing across countries, currencies, languages and time zones— to help companies gain global visibility to pay data and make smarter workforce decisions.
Whether you need payroll support in Greece through an employer of record, a local provider or as part of a comprehensive global payroll system, contact us to let our experts find the right solution for you.
Disclaimer
The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.