Guide to living and working in Greece

Greece

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Country Overview

 

Population

11.1m

Unemployment Rate

7.9% (10/07)

Average annual unemployment rate 1995 – 2004

10.4%

GDP

€181bn / $266bn

GDP per head

€13,870 / $20,290

Capital

Athens

Major language

Greek

Life Expectancy (UN)

77 years (men)

82 years (women)

Monetary unit

1 euro = 100 cents

Internet domain

.gr

International dialing code

+30

 

Greece has a free-market economy with the public sector accounting for about 40% of GDP and tourism providing 15%. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. Greece violated the EU's Growth and Stability Pact budget deficit criteria of no more than 3% of GDP from 2001 to 2006, but finally met those criteria in 2007. Public debt, inflation and unemployment are above the Euro-zone average, but are falling.


The Economy

Industries include: tourism, food and tobacco processing, textiles, chemicals, metal products, mining and petroleum.

 

Pay

 

 


Human development Index

Ranking:  24th

Index value:  0.926

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

The high growth rate of the Greek economy in recent years (4.6% in the first quarter of 2007) has brought an increase in employment and a fall in unemployment. The increase has been mainly in salaried employment and has been most pronounced in parts of the services sector, such as trade, hotels and restaurants.

In contrast with other EU countries, most employment is full time, despite the legal introduction of flexible forms of employment. Part-time workers only account for 6% of total employment, compared with the EU average of 18.5%. Of the total number of people employed in the Greek labour market, 8.2% are self-employed with staff, 22.6% are self-employed without staff, 62.5% are salaried and 6.6% are assistants in the family business. Most enterprises (more than 80%) are small in terms of turnover (up to 150,000€) and more than 85% of enterprises have no more than five employees.

Greece is in need of: salespersons, office workers, waiters, hairdressers, building workers, financial services workers, plumbers, vehicle mechanics, luggage porters and technicians.

Applying for a job:

When applying for a job it is necessary to attach a typed CV, of two or three pages, which provides a clear description of your educational and professional experience. The CV should include:

  • personal information, such as your name, address, telephone number, email address and nationality,
  • subjects studied and details of professional experience, with the titles of previous jobs, the details of the employers, the length of the employment and the duties carried out,
  • knowledge of foreign languages and the qualifications obtained,
  • the title and duration of any seminars attended,
  • knowledge of computers and other specialised knowledge, as well as personal interests,
  • two or three addresses of former teachers or employers, with their contact information.

Accompanying letter: The CV should be accompanied by a typed letter of no more than one page linking the applicant's professional and educational qualifications with the job. You should sign the letter. Many Greek companies use application forms to replace the CV, and these forms are long and detailed.

 

Conditions and rights

Working hours:

Standard hours: The legal weekly working time is 40 hours. Under the new labour law, maximum daily working time is fixed at 10 hours, the overtime system is fixed and overtime remuneration is restricted. The maximum weekly working time of employed persons cannot exceed more than 48 hours on average in a maximum period of four months, including overtime.

Extra hours: Where the working week of 40 hours is applied, the employee may work five additional hours a week at the employer's discretion. Those hours (the 41st, 42nd, 43rd, 44th and 45th) are treated as extra work with a payment rate 25% higher than the normal hourly rate and are not counted as part of the permissible overtime.

Overtime: Work additional to the 45 weekly hours is treated as overtime. The payment for lawful overtime of up to 120 hours per year is 50% above the standard rate and can be done after special authorisation. Lawful overtime in excess of 120 hours is remunerated at 75% above the standard rate.

 

Holidays and leave:

Normal annual leave: Until an employee has completed 12 months of continuous employment, he/she has entitlement to a percentage of the normal annual paid leave which is proportional to the time he has spent working. The percentage is calculated on the basis of annual leave of 25 working days, or, if the workplace operates a five-day working week system, of 20 working days. In the second calendar year, the employee is entitled to normal annual paid leave in proportion to the length of his employment at the workplace. The leave is increased by one working day for each year of employment in addition to the first year, up to 26 working days, or up to 22 working days if the enterprise operates a five-day week.

Parental leave: A parent whose child is an infant of up to two-and-a-half years of age can take nursing leave of up to three months without payment. Parental leave of four days, with payment, is granted to parents with children less than 16 years of age to enable them to visit their children’s teachers at school.

Convalescence leave (after sickness): The duration of this leave depends on the employee's length of service with the company.

Education and study leave: is granted to persons who are due to sit examinations, provided that they have completed one year of employment.

Maternity leave: a female employee is entitled to 16 weeks paid maternity leave: eight weeks preceding the birth and eight weeks after the birth. For two years after the child’s birth, nursing mothers may arrive at work one hour later, leave one hour earlier or take a one-hour break from work.

Public holidays:  New Year's Day, 6 January, Shrove Monday, 25 March, Good Friday, Easter Monday, 1 May, 15 August, 28 October, Christmas Day and Boxing Day.

 

Contracts

Types of employment:

The most common form of employment contract is the full-time employment contract of indefinite duration. Part-time employment is less common compared with other EU countries. Seasonal employment is widespread in tourist areas and in occupations directly connected with tourism. Labourers and technicians, especially in the construction and agriculture sectors, are paid a daily wage on a weekly basis. A lot of professionals, such as engineers, work for one employer on the basis of the issue of receipts for the provision of services, rather than receiving a salary.

Fixed-term employment contracts are frequently entered into, when it is agreed that the employment is for a certain duration, or when the duration of the employment is obvious from the nature of the work for which the salaried person is being hired (contracts for seasonal work or for the performance of specific tasks).

Employment contracts:

The employer is obliged to notify the employee of the material terms of the contract or relationship, namely: 

  • details of the contracting parties (employer and employee); 
  • the place at which the work is to be provided, the registered office of the company or the home address of the employer; 
  • the employee's post or specialisation, grade or employment category, and the objective of the work; 
  • the start date of the employment contract, and, if it is a fixed-term contract, its duration;
  • the duration of any entitled paid leave; 
  • the compensation payable and notice which the employer and the employee must give, in the event of termination of the contract; 
  • the employee’s salary; 
  • the employee’s working hours; 
  • the collective arrangements which are applicable to the employee.

 

The information must be provided no later than two months after the employee has started work. There are other forms, in addition to the contract of indefinite duration and the fixed-term contract. These are: 

  • the work contract: the contractor is paid when the work is delivered. The contract is dissolved automatically when the work is completed; 
  • the contract for the provision of independent services: this sort of contract is used when the person providing the service is not subject to the employer's control; 
  • the association contract: this is used when a joint benefit is pursued with joint contributions; 
  • the representation contract: this is used when the representative acts on the basis of general instructions from the employer, without having to work under the employer's supervision or being tied to regular working hours.

 

Visas and work permits


Visas:

Greece is a signatory to the Schengen Agreement. The 15 Schengen countries are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone.

Passport holders from EU/EEA/EFTA countries and/or the following countries do not need a visa to visit Greece or other Schengen countries: Andorra, Argentina, Australia, Bolivia, Brunei, Bulgaria, Canada, Chile, Costa Rica, Croatia, El Salvador, Guatemala, and Honduras. Israel, Japan, Republic Of Korea, Liechtenstein, Malaysia, Mexico, Monaco, New Zealand, Nicaragua, Panama, Paraguay, Romania, San Marino, Singapore, Switzerland, United States, Uruguay, Vatican and Venezuela.

Nationals of countries not mentioned above will need a visa to visit Greece.

Work permits:

Citizens of European (EEA) Member Countries: are able to live and work in Greece without a visa or work permit.

‘New’ EU Member Countries: Greece welcomes all citizens from the new EU Member Countries (Slovenia, Slovakia, Hungary, Czech Republic, Estonia Lithuania, Latvia and Poland) by giving them equal rights of residence and employment as other EU citizens, in accordance with the principle of the free movement of workers.

Non-EU citizens: must obtain a work visa or permit to work in Greece.

 

Tax, social security and healthcare

Taxation system:

All tax on an individual's income in Greece is progressive with income taxed at a rate of 5% - 40%. An individual in Greece is liable for tax on his income as an employee and on income as a self-employed person. In the case of an individual who is a "permanent resident" of Greece, tax will be calculated on his income earned in Greece and overseas. A foreign resident who is employed in Greece pays tax only on his income in Greece. To be considered a Greek resident, residence must be established in Greece and not in another country. The family should be domiciled in Greece and the children also educated there.

Employers have to make monthly deductions for the amount of tax and national insurance due to a salaried worker. A self-employed individual has to make advance payments on income tax that will be offset against their liability on filing an annual return. In the case of a new business advance payments are calculated according to the estimates of the owner of the business. The advance payments are payable three times a year.

Greece individual income tax rates:

 

Income Band (€)

Tax %

1 – 11,100

0%

11,101 – 13,000

15%

13,001- 23,000

30%

23,001+

40%

 

Social security system:

Social insurance is compulsory and all citizens are protected. There are three systems: the system of social insurance for the protection of employees, the system of social welfare which provides care for people in need, and the national health system which covers all residents in Greek territory. The social insurance system seeks to cover the risks faced by employees by granting benefits which make up for loss of income from employment. The system encompasses main and supplementary public insurance and functions through autonomous insurance bodies.

The general body for the social insurance of employed persons is the Social Insurance Institute (IKA). Persons with their own business and professionals are insured by the Greek Industrialists and Craft Industry Operators Fund (TEVE). The Agricultural Insurance Organisation (OGA) provides insurance cover for the entire farming population. Civil servants and employees of public bodies are covered by the State and separate insurance bodies. The Social Insurance Institute (IKA) is the largest insurance body in Greece and covers more than half the population. It provides benefits of two types: benefits in kind and cash benefits. Insurance by IKA is compulsory and starts from the first day of employment. IKA obtains its income from the contributions of employees and employers, and from government funding.

Social insurance also includes insurance against unemployment by the Manpower Employment Organisation, entitlement to housing benefits and rent allowances provided by the Workers' Housing Organisation and entitlement to the social tourism and theatre visit benefits etc. provided by the Workers' Foundation.

Health system:

The Greek national health system is operated by the Social Insurance Institute (IKA). You must obtain a health booklet from your local IKA office as soon as you start work. The booklet has to be presented on all visits to a doctor or hospital. The local IKA office will provide a list of doctors who work within the national health system. All medical care is free, but there is a prescription charge equal to 25% of the cost of medicines. Free emergency treatment is provided for EU visitors / employment seekers, who should bring the appropriate E forms with them. Public servants, bank employees, traders and some other professionals have other health insurance.

Doctors: All medical examinations carried out by doctors in IKA surgeries or by IKA doctors in the home are free of charge for insured people and their family members. General and specific tests in IKA laboratories are also free of charge, as is dental treatment.

Hospitals: Treatment in IKA hospitals, public hospitals and private clinics contracted to IKA and in clinics for chronic conditions and handicapped children is provided free of charge. Your IKA doctor, who has to give prior approval, arranges admission to hospital. Apart from the public hospitals, there are private hospitals, and also private doctors. Non-prescription medicines can be obtained from duty and night chemists in each neighbourhood.

 

Lifestyle

As a Mediterranean country, much of modern day Greek life still reflects the values of family, home and church. A relaxed approach to life is reflected in inconsistent quality in public services.