Business culture in Greece
Business culture in Greece
Business culture in Greece is characterized by relationship-focused, expressive, and hierarchical traits that shape workplace interactions. Unlike Western business cultures that often prioritize efficiency and direct transactions, Greeks value building personal connections before conducting business. Understanding these cultural elements helps international managers build trust and navigate the Greek business landscape successfully.
Communication
In Greece, business communication tends to be expressive and animated with an emphasis on personal connection. Greeks use many hand gestures and maintain eye contact during conversations. They may speak passionately about topics and sometimes interrupt each other, which is not considered rude but rather shows engagement and interest.
Relationships
Professional relationships in Greece are built through shared meals, social gatherings, and personal conversations about family and interests. Greeks value loyalty, trust, and genuine connections over purely transactional business dealings. Business partnerships often develop only after personal rapport has been established.
Hierarchy
Workplace hierarchy in Greece typically follows a top-down structure which influences decision-making and reporting relationships. Senior leaders make most important decisions, and showing respect to those in authority positions is essential. Employees generally expect clear direction from their managers and may be reluctant to challenge ideas publicly.
Time management
Attitudes toward time and punctuality in Greece tend to be flexible which affects scheduling and deadlines. While being on time for meetings is appreciated, Greeks often take a more relaxed approach to schedules. Meetings may start late, run longer than planned, and focus more on relationship-building than strictly following an agenda.
Practical applications
When working with colleagues in Greece, international managers should invest time in relationship-building to establish trust and credibility. Schedule business lunches or dinners to get to know partners personally before discussing serious business matters. Be patient with decision-making processes that may take longer than expected due to relationship considerations.
Managers should also show respect for hierarchy by addressing senior leaders appropriately and recognizing their authority in meetings. When planning projects, build in extra time for deadlines and be flexible with meeting schedules to accommodate the more relationship-focused Greek business approach.
Market insights for Greece
Greece employment market overview
The Greece employment market is characterized by worker shortages, skill mismatches, and demographic challenges that shape hiring opportunities and challenges. Greece's job market is growing in tourism, construction, and IT sectors, with a 11.6% unemployment rate. The country faces a significant worker shortage with over 300,000 additional workers needed by 2025.
Talent availability
Skilled professionals in Greece are limited in technical fields with a notable mismatch between education and market needs. Despite high unemployment among college graduates, employers struggle to fill technical positions. This creates a paradox where unemployment exists alongside unfilled job openings.
Key industries
Greece's strongest employment sectors include tourism, hospitality, shipping, technology, and construction which offer opportunities for international companies. Tourism alone accounts for nearly 20% of the country's GDP and employs a significant portion of the workforce, especially during summer months.
Salary expectations
Salary ranges for professionals in Greece typically range from €800-€1,500 monthly for entry-level positions and €1,500-€3,000 for mid-level roles, affecting hiring budgets. Senior management positions in international companies may command higher salaries, but overall compensation remains lower than Western European averages.
Language skills
Business language proficiency in Greece is moderate with about 51% of professionals speaking English as a second language. Knowledge of Greek remains important for customer-facing roles, while international business is commonly conducted in English.
Hiring implications
Companies hiring in Greece should consider upskilling programs to address skill gaps and improve candidate matching. Offering competitive benefits beyond salary can help attract talent in a tight labor market.
Companies hiring in Greece should also explore international recruitment channels to address worker shortages, particularly in technical fields. The significant need for workers creates opportunities for bringing in foreign talent with specific skills.
EOR benefits in Greece
What are the benefits of using an EOR in Greece?
The key benefits of using an Employer of Record (EOR) in Greece include simplified compliance with complex labor laws, quick market entry without setting up a local entity, reduced administrative workload, access to local expertise, and cost reduction.
Here are the 5 benefits of using an EOR in Greece:
Simplified compliance. Greece has specific labor laws that can be hard to understand. An EOR takes care of following all Greek employment rules, tax requirements, and social security payments (EFKA). This keeps your company safe from breaking laws that could lead to fines or legal problems.
Quick market entry. Setting up a company in Greece takes a lot of time and paperwork. With an EOR, you can hire Greek workers right away without creating your own Greek company. This means you can start doing business in Greece within days instead of months.
Reduced administrative workload. The EOR handles all the paperwork for hiring, paying, and managing employees in Greece. They take care of contracts, payroll, tax forms, and required benefits like paid leave and holiday pay. Your team can focus on growing your business instead of dealing with Greek paperwork.
Local expertise access. Greek employment practices have unique features like mandatory Christmas and Easter bonuses. An EOR knows all these local rules and customs. They can help you understand Greek work culture and make sure your employees get all the benefits they're entitled to under Greek law.
Cost reduction. Creating and running a Greek company costs a lot of money. Using an EOR saves you from spending on legal fees, office space, and hiring HR staff in Greece. You pay one simple fee to the EOR instead of dealing with multiple expenses and financial surprises.
Unique compliance considerations in Greece
Key compliance challenges
What are the compliance challenges when hiring in Greece?
The key compliance challenges when hiring in Greece include strict employment classification rules, complex termination procedures, mandatory benefits requirements, payroll tax obligations, and data protection regulations.
Here are the 5 compliance challenges companies face when hiring in Greece:
Employment classification. Greek law presumes an employment relationship exists if work is performed for over nine months, regardless of contract labels. Misclassifying employees as independent contractors can lead to fines, back payments, and legal disputes. Companies must ensure proper classification to avoid penalties.
Termination procedures. Greek labor law requires written notice (1-4 months based on tenure) and severance pay (up to 12 months' salary for long-term employees). Terminating employees without following these steps can result in lawsuits and compensation claims. Even during probationary periods (up to 12 months), proper documentation is required.
Mandatory benefits. Employers must provide the minimum wage (€910/month as of 2025), paid leave, and other mandatory benefits. Greek law also requires consultation with works councils on major decisions like layoffs or policy changes. Ignoring these requirements can invalidate actions and lead to legal challenges.
Payroll taxes. Employers in Greece must contribute 27.78% of gross salary to social security (EFKA). Errors in calculating these contributions or other payroll items can trigger audits, penalties, and back payments. Companies must maintain accurate payroll records and make timely payments.
Data protection. Greece enforces strict GDPR compliance for handling employee data such as payroll details and health records. Companies must obtain explicit consent and implement proper security measures. Violations may result in fines up to €20 million or 4% of global revenue.
An Employer of Record (EOR) can handle these compliance challenges, taking on the legal responsibility and ensuring your hiring practices adhere to Greece's regulations.
Employment basics
Essential employment information and regulations for hiring in Greece.
Working hours
Employment protection
Compensation Standards
Minimum Wage
1500 USD
Currency
USD
Pay Frequency
monthly
Benefits & leave
Comprehensive overview of employee benefits and leave policies in Greece.
Leave Policies
Annual Leave
Days per year: 20
Payment: 100%
Notice period: 2 weeks
Ref: Employment Act Section 15
Maternity Leave
Days per year: 98
Payment: 100%
Flexible return-to-work arrangements available Protection from dismissal during pregnancy Right to return to same or similar position
Ref: Employment Act Section 17
Paternity Leave
Days per year: 14
Payment: 100%
Can be taken in two separate weeks Multiple births do not increase leave duration
Ref: Employment Act Section 18
Sick Leave
Days per year: 14
Payment: 100%
Ref: Employment Act Section 16
Employee Benefits
Employee benefits
Greece provides a comprehensive benefits package for employees that includes both mandatory and optional benefits. These benefits are designed to ensure employee welfare and comply with local regulations.
Mandatory Benefits
Non-Mandatory Benefits
Public Holidays
Greece observes 14 public holidays throughout the year. Most holidays are paid at 100% of regular salary.
| Date | Holiday | Status |
|---|---|---|
| January 1 | New Year's Day | Mandatory |
| January 6 | Epiphany | Mandatory |
| March 3 | Clean Monday (Ash Monday) | Mandatory |
| March 25 | Independence Day & Annunciation | Mandatory |
| April 18 | Orthodox Good Friday | Mandatory |
| April 20 | Orthodox Easter Sunday | Mandatory |
| April 21 | Orthodox Easter Monday | Mandatory |
| May 1 | Labor Day | Mandatory |
| June 8 | Orthodox Pentecost (Whit Sunday) | Mandatory |
| June 9 | Holy Spirit Monday (Whit Monday) | Mandatory |
| August 15 | Assumption of the Virgin Mary | Mandatory |
| October 28 | Ochi Day (National Anniversary) | Mandatory |
| December 25 | Christmas Day | Mandatory |
| December 26 | Synaxis of the Mother of God | Mandatory |
Taxes & payroll
Comprehensive tax structure and payroll requirements for employers and employees in Greece.
Tax Structure Overview
Important Tax Information
When using an EOR in Greece, your EOR provider will handle all tax calculations, withholdings, and submissions to local authorities. This ensures full compliance with local tax laws.
Tax overview
Key tax considerations when employing in Greece:
| Tax type | Paid by | Rate | Notes |
|---|---|---|---|
| {"name":"Healthcare Levy","type":"healthcare","paid By":"shared","employer Contribution":1,"employee Contribution":1,"period":"annual","notes":""} | employee | Varies | Standard {"name":"healthcare levy","type":"healthcare","paid by":"shared","employer contribution":1,"employee contribution":1,"period":"annual","notes":""} rates apply in Greece. |
| {"name":"Personal Income Tax","type":"income Tax","paid By":"employee","period":"annual","notes":"Progressive tax system with three brackets"} | employee | Varies | Standard {"name":"personal income tax","type":"income tax","paid by":"employee","period":"annual","notes":"progressive tax system with three brackets"} rates apply in Greece. |
| {"name":"Social Security Contributions","type":"social Security","paid By":"shared","employer Contribution":12.5,"employee Contribution":7.5,"period":"annual","notes":"Calculation base: Gross salary up to maximum threshold"} | employee | Varies | Standard {"name":"social security contributions","type":"social security","paid by":"shared","employer contribution":12.5,"employee contribution":7.5,"period":"annual","notes":"calculation base: gross salary up to maximum threshold"} rates apply in Greece. |
Payroll Requirements
Payment Details
Pay Frequency: monthly
Currency: USD
Minimum Wage: 1500 USD
13th Month Bonus: Required