Calculate total employer cost of a Greek employee including gross salary and employer EFKA contributions of 22.29%. See the true cost per hire in 2025.
Enter the employee's annual gross salary to calculate the total employer cost, including mandatory EFKA contributions paid by the employer in 2025.
Total Employer Cost
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Employer EFKA
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Gross salary
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Monthly employer cost
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EFKA surcharge rate
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How employer labour costs work in Greece
When a Greek company hires an employee, the gross salary is only part of the total cost. On top of gross salary, the employer must pay EFKA contributions of approximately 22.29% directly to the social insurance fund. The employee also pays 13.87% from their own gross, but this is not an additional cost to the employer, it is deducted from the salary already paid.
Example calculation
Hiring an employee at 24,000 EUR gross annual salary: employer EFKA = 24,000 x 22.29% = 5,350 EUR. Total annual employer cost = 24,000 + 5,350 = 29,350 EUR. Monthly employer cost = 29,350 / 12 = 2,446 EUR. The employee takes home approximately 1,242 EUR per month, so for every euro net the employee receives, the employer pays about 1.97 EUR.
Tips and considerations
Budget for total employer cost, not just gross salary, when hiring. Use available OAED subsidy programs to reduce EFKA burdens for new hires in the first year. Consider whether part-time or project-based arrangements are more cost-effective for early-stage roles.
Frequently asked questions
What employer EFKA contributions are due in Greece?
Greek employers pay EFKA contributions on top of the gross salary. The employer share is approximately 22.29% of gross salary, split across: main pension (employer) 13.33%, supplementary pension (employer) 3.50%, health insurance (employer) 5.10%, and unemployment (employer) 0.36%. These rates apply to most private-sector employees in the standard EFKA regime. Certain categories such as new employees in specific subsidised schemes, apprentices, or workers in the agricultural sector may have different rates. The total payroll burden (gross salary plus employer EFKA) is often called the cost of employment.
Does Greece have a payroll tax separate from EFKA?
Greece does not have a separate payroll tax distinct from EFKA contributions. However, employers also bear costs related to mandatory benefits such as the Christmas bonus (one month salary in December), Easter bonus (half a month before Easter), and summer leave allowance (half a month in July). These are not taxes but are mandatory labour costs calculated on the regular monthly salary. Together they add roughly 14.3% to the base monthly salary burden, or equivalently, the annual gross cost equals the monthly salary multiplied by 14.
Are there employer incentives to reduce labour costs in Greece?
Yes. Several programs reduce the employer EFKA burden for specific categories. The OAED youth employment programs subsidise employer contributions for young workers aged 18-29 for up to 12 months. Long-term unemployment re-integration programs can waive employer contributions for up to 12-24 months. Digital and technology sector employers hiring graduates from STEM fields may access ESPA-funded hiring subsidies. Startup companies certified by the Hellenic Startup Association (elevate Greece) can access specific talent incentive programs. These programs change frequently; EFKA and OAED websites publish current eligibility criteria.
How does Greece compare to other EU countries for employer labour costs?
Greece's total employer social contribution rate of around 22.29% is in the mid-range for the EU. Countries like France and Belgium have rates exceeding 40-45%, while Ireland is closer to 11%. Total labour costs in Greece are moderate by Western European standards but considered relatively high compared to Eastern European peers. The Greek government has progressively reduced EFKA rates since the 2010-2019 adjustment period; the overall rate was above 27% before the reform. The current rates represent a deliberate policy to make Greek labour more competitive without reducing benefit coverage.