As summer holidays approach, Greek labour legislation sets clear rules on how employers must pay annual leave allowances and holiday wages to employees.
Under current regulations, employers must pay the holiday allowance and the corresponding leave earnings before the employee begins their annual leave. The law also states that these payments cannot offset voluntary benefits or higher salaries that a company may already provide.
During annual leave, employees are entitled to receive the regular wages they would have earned if they had continued working.
If an employer fails to grant an employee’s requested leave within the legally defined timeframe, the employer must pay the leave earnings with a 100% increase.
How the holiday allowance is calculated
The holiday allowance depends on the employee’s length of service and regular earnings, with specific limits based on the method of payment.
Salaried employees
For employees receiving a monthly salary, the holiday allowance equals their regular leave earnings, with a maximum limit of 15 days’ wages.
In practice, employees paid a monthly salary receive an allowance equal to half of their monthly salary.
Daily wage workers
For workers paid by daily wage, unit of work or percentage-based remuneration, the allowance cannot exceed 13 days’ wages.
In practice, eligible workers can receive up to 15 daily wages.
Employer obligations regarding annual leave
Greek labour law establishes strict rules for scheduling annual leave to protect employees’ rights while ensuring businesses operate smoothly.
Employees receive paid annual leave following agreement between the two sides. However, employers must grant the leave within two months of the employee submitting their request.
The law also requires at least half of a company’s workforce to take their annual leave during the summer period, specifically between May 1 and September 30.