Establishing and managing payroll in Greece
Greece is a beautiful Southern European country with a diverse mix of cultures, a fascinating ancient history, and a prominent place in the European Union. While Greece’s economic woes may have been widely reported in the early 21st Century, the country has managed to make great progress and its economy is in a far more positive place now than just a few years ago.
If your organization is looking to expand into Greece, one of the first steps will be hiring employees locally, and this requires setting up a Greece payroll outsourcing system in the country. While it is certainly possible to do this, Greece’s unique employment laws, as well as language and cultural barriers, can cause delays and make it a lengthy process for foreign businesses.
At New Horizons, we specialize in helping businesses expand internationally, including into Greece. Our Greece payroll outsourcing setup and management services are designed specifically to give clients a faster, more reliable route of entry into Greek employment and expansion, ensuring you operate in full compliance with local regulations, whether or not you have an entity in the country.
If you have an entity
Does your organization have an entity registered in Greece? We can help you to create and run your Greece payroll management. In addition, we can provide HR, contract, and legal compliance support meaning you won’t have to worry about any of the complex administration and can focus on your expansion efforts.
If you don’t have an entity
If you have not registered an official entity in Greece, we can provide our more comprehensive payroll service, offering our Greek subsidiary to work as your employer of record in the country. Our Greece payroll outsourcing experts can also manage your HR, contracts, legal compliance, and more.
Expanding your business in Greece with New Horizons
Greece payroll guide
Taxation and withholdings in Greece
Employers and employees must both pay a percentage of salaries to social security, at a rate of 28.56% and 16.5% respectively. Income tax is progressive and ranges from 9% to 44% depending on income level.
Entitlements and terminations rules in Greece
Employers in Greece are legally required to give notice for terminations of indefinite-term employment contracts. The length of notice depends on the length of employment. In general:
- Between two month and one year with an employer = One month of notice
- Between one and four years = Two months
- Between four and six years = Three months
- Between six and eight years = Four months
- Between eight and ten years = Five months
- Over ten years = six months (and one extra month for every year up to a maximum of 24 months)
Severance pay equivalent to 50% of the notice period is the norm.
How to establish Greece payroll outsourcing
In general, businesses trying to set up Greece payroll outsourcing are required to register a legal entity in the country. This process can be complex and time-consuming, and it is important to follow the combination of national and EU-level regulations to avoid fines and legal issues.
Alternatively, you can outsource your payroll setup and management to New Horizons. We can provide our Greek subsidiary to act as employer of record for your new hires, so you don’t even need to have a registered entity in Greece. Additionally, we can establish your Greece payroll and handle all the ongoing administration and compliance work, giving you the freedom to expand into the country more efficiently.