What an employee really costs an employer in Greece

On top of the gross salary, a Greek employer pays about 21.79% in social-insurance contributions — so total cost is roughly gross × 1.2179, paid 14 times a year. A €1,500/month hire costs the employer about €1,827/month, or around €25,600 a year. This is the number that matters if you’re hiring, not the headline salary.

The employer add-on

for a standard employee, the employer pays around 21.79% of gross in EFKA contributions (pension, health, unemployment), including the 3% employer share of the TEKA auxiliary pension for new entrants. This is on top of the salary, not deducted from it.

The simple multiplier

total monthly cost ≈ gross × 1.2179. And remember Greek pay runs 14 times a year, so the annual cost is that monthly figure × 14.

Worked examples (2026, approximate)

€920 gross/month (minimum wage) → ~€1,120/month employer cost → ~€15,680/year.
€1,500 gross/month → ~€1,827/month → ~€25,575/year.
€3,000 gross/month → ~€3,654/month → ~€51,150/year.

The tax wedge

taking employee and employer contributions plus income tax together, the total “wedge” between what an employer pays and what a single average worker takes home is roughly 39% (OECD measure) — so the employee nets around 74% of gross, and a smaller share of total labour cost.

Why this matters for a small business or newcomer-employer

if you’re opening a shop, a kiosk or a service and planning to hire, budget for the ×1.2179 and the 14 payments from the start — the real cost of a hire is meaningfully above the salary you advertise. Underbudgeting here is a common first-business mistake.

The μπλοκάκι temptation (and why it’s risky)

the 21.79% is exactly why some employers try to engage workers as μπλοκάκι freelancers instead. But if the worker effectively works only for you under your direction, the law can reclassify them as an employee — leaving you exposed to back-contributions and penalties. The saving may not be real.

How not to get cheated (as an employer)

model the full cost (×1.2179 × 14) before you commit to a hire, and don’t treat misclassification as a cost-saving — it’s a liability. As an employee, this same number tells you why “we’ll pay you more as a freelancer” rarely makes you whole once you count lost contributions and rights.

EFKA contributions · gross to net pay · employment forms · TEKA pension

This is general information, not payroll, tax or business advice. Rates change yearly and depend on category — confirm with e-EFKA or an accountant. WTP Finance is informational only.

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