With the shift to remote working, companies across the globe are seeking top-tier, remote talent beyond the corporate HQ. Greece offers an attractive talent pool thanks to an increasingly educated workforce and low employment rate, making remote, global work especially appealing to qualified contractors.
Salaries for remote Greek talent are much lower on average than competitors in the U.S. and Canada. The average annual salary is €27,560, which is about US $29,886.
However, when it comes to hiring talent from Greece, salaries aren’t the only monetary consideration to factor into your budget. Instead, you’ll need to think about the entire employment package. This includes tax contributions, social security contributions, overtime and vacation pay, stipends and benefits.
We analyzed the costs of hiring an employee in Greece, including mandatory and optional expenses. This article will help you expand your global reach without increasing hiring costs.
Mandatory Costs of Hiring in Greece
Mandatory hiring costs are non-negotiable expenses when hiring remote, Greek talent. Proper accounting of salaries, taxes, overtime pay, and vacation pay is essential. Otherwise, you may break local labor laws and regulations.
Salary
The average minimum wage in Greece is €780.00 per month or US $845.79. However, salaries vary widely across industries and job types, as is the case with most countries. To offer a competitive salary, employers must consider the type of job and the skillset required for success.
Generally, salaries in Greece are slightly lower than in the U.S. and Canada. This means you will pay less for similarly qualified workers than in countries with a stronger economy.
Taxes and Benefits
All employers are required to contribute 22.29% in payroll taxes. This money goes toward:
- 13.33%: Pension Fund
- 3.0%: Supplementary Pension
- 4.3%: Health Insurance
- 0.25%: Supplementary Health Insurance
- 1.41%: Unemployment
Overtime Pay
Working hours are typically eight hours per day, 40 hours per week. Monday through Friday is the standard workweek. However, if both parties agree, the standard working hours can be 6.4 hours per day, Monday through Saturday.
Overtime payment is required for contracts with a salary of up to EUR 7,800 per year. Overtime pay is not required for contracts that pay more than the minimum wage.
Overtime is defined as hours worked outside of normal working hours. The employer and employee must reach an agreement on the number of extra hours before working. The employer must then submit the request to the Labor Agency. Employees are compensated for working extra hours in the following ways:
- 120% of the hourly rate, for the first 5 hours
- 140% of the hourly rate, for the following hours
- 125% of the hourly rate, for any night shift
Severance Pay
Severance payments in Greece vary depending on the employee's tenure. Employees who have worked less than a year are not entitled to any payments. For those who have worked with the same employer for 28 years or more receive 24 months of monthly wages.
Supplemental Costs of Hiring in Greece
When the world is your competition, it pays to incentivize new and existing hires with attractive supplementary benefits like medical, dental, vision, life insurance, retirement savings plans, and other stipends and perks.
Offering attractive supplementary benefits boosts morale and increases retention. This lowers onboarding costs, helping establish a strong, remote team you can rely on.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. Many employers offer private health insurance as a benefit to employees, which covers medical expenses not covered by the public health system. In Greece, there is a variety of supplementary benefits certain companies offer.
Typical supplementary benefits can include:
- Private health insurance
- Housing allowance
- Car allowance
An EOR, like Borderless, offers localized benefits packages that typically include the following:
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Life Insurance
- Retirement Contributions
In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses and Extras
Thirteenth and fourteenth-month salaries are mandatory for employees in the private sector, paid at Christmas, Easter, and in the summer.
Average Cost of Hiring
Below is an estimate based on a salary of $100,000 for an employee in Greece. This salary is designed for ease of calculation. The actual salary and costs will vary depending on your hiring goals. These include the employment contract details, the candidate's experience and education, and the type of position.
Average Cost Of Hiring One Employee in Greece (Annual in $USD)
Mandatory Burdens
Salary: $100,000
Employer Taxes: $22,290
Thirteenth & Fourteenth Month Salary: $16,666
Total: $138,956
These totals do not include costs for additional benefits. Examples of soft benefits in Greece can include gym memberships, office set-up subsidies, and co-working memberships.
Work with Borderless
Growing your remote, global team and hiring Greek talent can seem overwhelming, especially when you consider all the associated costs.
Leave the headache to Borderless. An Employer of Record (EOR) handles all the administrative work, ensuring compliance and giving you cost-savings, so you can focus on growing your business.
To get started, book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
