If you employ people in Greece — or you are about to make your first Greek hire — annual leave is one of the first compliance questions to settle. The Greek Labour Code (Εργατικός Νόμος), Law 4808/2021, and Royal Decree 16/1920 set both a generous statutory minimum and a mandatory holiday bonus on top. Together, they make Greek annual leave more expensive — and more rigid — than international employers usually expect.

This guide walks through what the Greek framework actually requires in 2026: the 20-day first-year minimum, the 25-day entitlement from year two, the επίδομα αδείας holiday bonus, the right to take leave during the summer window, and the pitfalls that catch most foreign employers off guard. Every fact below is drawn from the Labour Code itself and is current as of May 2026.

Key Takeaways

Statutory annual leave in Greece is 20 working days of paid leave in the first year of service.
From the second year onwards, the entitlement rises to 25 working days per calendar year.
Employees also receive a holiday bonus (επίδομα αδείας) equal to their normal remuneration.
In the first year, leave is pro-rated based on months worked.
Employers must allow employees to take at least half of their annual leave during the May–October window.
The holiday bonus is subject to income tax and social security contributions — it is treated as ordinary salary.
Untaken leave must be paid out in cash on termination.

The Statutory Entitlement Under the Greek Labour Code

The Greek framework starts with the Labour Code (Εργατικός Νόμος), supplemented by Law 4808/2021 and the long-standing Royal Decree 16/1920 on annual leave. Together, these instruments fix the floor that every employer in Greece must meet.

The headline rule is straightforward. In the first year of service, employees are entitled to 20 working days of paid annual leave. From the second year onwards, the entitlement rises to 25 working days per calendar year. A “working day” here means the employee’s normal scheduled working day, so weekends and Greek public holidays do not count against the 20–25-day allowance.

That puts Greece firmly above the EU Working Time Directive’s 20-day baseline once an employee passes their first year — and the holiday bonus, discussed below, makes the package one of the more generous in the EU on a like-for-like cost basis. For a side-by-side comparison with neighbouring regimes, see our guides to Annual Leave Laws in Spain and Italy and Annual Leave Entitlement in Portugal.

Why 20–25 Days Is Not the Whole Story

The headline figure is only part of the package. Greek law layers a second mandatory entitlement on top: the επίδομα αδείας, a holiday bonus paid in addition to normal remuneration. Employers who plan their Greek payroll around the leave days alone consistently underestimate their statutory exposure.

The Holiday Bonus (Επίδομα Αδείας)

The holiday bonus is the entitlement most foreign HR teams overlook. Under Greek labour law, employees receive — on top of being paid their normal salary while on leave — an additional payment equal to that normal remuneration. In effect, the employee receives both their regular pay during leave and a separate bonus tied to it.

The bonus is typically paid before the employee takes their main block of leave, so they have the cash in hand when they go on holiday. In practice, many Greek employers pay the επίδομα αδείας in June or July to align with the summer break.

What the Bonus Covers

The επίδομα αδείας is calculated on the employee’s normal remuneration. It is not a discretionary top-up — it is a statutory entitlement that sits alongside the leave days themselves. Employers cannot fold it into base salary, treat it as covered by an annual bonus, or buy it out during employment.

Tax Treatment

The holiday bonus is subject to income tax and social security contributions in the same way as ordinary salary. From a payroll perspective, that means it must run through the standard PAYE and contribution flows — not through a separate net-of-tax route.

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Eligibility: First Year, Subsequent Years, and Termination

Greek law treats the first year of employment differently from every year that follows.

First Year of Employment

In the first year, leave is pro-rated based on months worked. New hires accrue leave gradually rather than receiving the full 20 days from day one. So an employee who starts mid-year cannot expect to take the full statutory minimum within their first calendar year — their entitlement is scaled to the time actually worked.

The επίδομα αδείας is similarly pro-rated in the first year, matching the leave actually accrued.

From the Second Year Onwards

From the second year of service, employees are entitled to 25 working days of paid annual leave per calendar year. The entitlement applies to all employees on a contract of employment, regardless of seniority or role.

On Termination

When an employee leaves, the employer must pay out any untaken accrued leave in cash. This applies whether the departure is a resignation, a dismissal, or the end of a fixed-term contract. There is no scope for the employer to “cancel” accrued leave on exit.

Employer Obligations Under Greek Labour Law

The Labour Code places several non-negotiable duties on employers in Greece. Treat the following as a compliance checklist.

1. Grant the Statutory Minimum

You must grant the full statutory minimum — 20 working days in the first year and 25 working days from the second year onwards. Contracts that purport to offer less are void to the extent of the shortfall; the floor cannot be lowered, even with the employee’s apparent agreement.

2. Pay the Holiday Bonus

The επίδομα αδείας is mandatory, not discretionary. It must be paid in addition to normal salary — it cannot be substituted by ordinary leave pay alone. Employers who pay only regular salary during the leave period are in breach of the Labour Code.

3. Pay Normal Remuneration During Leave

The employee must receive their normal remuneration while on annual leave. That is in addition to the holiday bonus, not instead of it. The two payments stack.

4. Allow Leave to Be Taken Within the Calendar Year

Employers must give the employee a real opportunity to take their annual leave within the calendar year in which it is granted. Routine carry-over because the employer simply did not schedule the leave is not a defence — it is evidence of poor scheduling.

Employers must also allow employees to take at least half of their annual leave during the May–October period. The remaining leave can be scheduled at other times by agreement. A blanket “no summer leave” policy is not compatible with this rule.

5. Pay Out Unused Leave on Termination

Untaken accrued leave must be paid out in cash when employment ends. This is mandatory and cannot be waived by contract.

6. Pro-Rate First-Year Leave

In the first year, leave must be pro-rated based on months worked. Treating a new hire as if they have a full 20 days from day one over-allocates leave and distorts both payroll and termination calculations.

Carry-Over of Unused Leave

The default position under Greek labour law is that annual leave should be used in the calendar year in which it is granted. Carry-over rules are tight:

Untaken leave can be carried over into the next year only in specific circumstances, most commonly long-term illness.
Where carry-over is permitted, the leave should be used early in the following year.
Routine carry-over because the employer did not schedule leave is not allowed.

Employers should plan leave with their teams at the start of the year rather than relying on carry-over as a buffer.

Common Pitfalls for International Employers

If your team has only worked under UK, German, or US leave regimes before, the Greek framework will catch you off guard in predictable ways. Watch for these.

Pitfall 1: Forgetting the Επίδομα Αδείας

This is the single most common error and the most expensive one. The holiday bonus is mandatory in addition to normal holiday pay, not a discretionary thirteenth-month bonus. Building your Greek payroll budget around the leave days alone will systematically under-fund your statutory obligations.

Pitfall 2: Not Pro-Rating Leave in the First Year

A new hire is not entitled to the full 20 days in their starting year. The first-year accrual is pro-rated based on months worked. Treating a mid-year starter as if they had the full 20 days available creates unwanted contractual liabilities if the employee leaves part-way through the year.

Pitfall 3: Refusing Summer Leave Without a Valid Reason

Employees have the right to take at least half of their annual leave during the May–October period. You can negotiate exact dates around operational needs, but a flat policy of “no summer leave” is not compatible with the Labour Code.

Pitfall 4: Trying to Buy Out Statutory Leave Mid-Employment

You cannot pay an employee to give up their statutory minimum during employment. The only lawful cash conversion is the pay-out on termination. Mid-employment buy-outs of the 20–25-day floor are void.

Pitfall 5: Treating the Holiday Bonus as Tax-Free

The επίδομα αδείας is subject to income tax and social security contributions — it is taxable income, not a net-of-tax allowance. Settlement-agreement templates copied from the UK or US will usually mishandle this and create unpaid-tax exposure.

Frequently Asked Questions

How many days of annual leave am I entitled to in Greece?

The statutory minimum is 20 working days of paid annual leave in the first year of service, rising to 25 working days from the second year onwards. Saturdays, Sundays, and public holidays do not count against the entitlement.

What is the επίδομα αδείας in Greece?

The επίδομα αδείας is the mandatory holiday bonus payable in addition to normal salary during annual leave. It is equal to the employee’s normal remuneration — so the employee effectively receives both their regular pay during leave and an equivalent extra amount tied to it.

Is the holiday bonus taxed in Greece?

Yes. The επίδομα αδείας is treated as taxable income and is subject to income tax and social security contributions in the same way as ordinary salary.

When do I get the full 25-day entitlement?

The full 25 working days apply from the second year of service. In the first year, leave is pro-rated based on months worked, with a baseline of 20 working days for a full first year.

Can I be forced to take my leave outside the summer?

No, not entirely. Employers must allow employees to take at least half of their annual leave during the May–October window. The remaining leave can be scheduled at other times by agreement, but employees cannot be pushed out of the summer window altogether.

Can annual leave be carried forward in Greece?

Generally no. Annual leave should be used in the calendar year in which it is granted. Carry-over is only permitted in specific circumstances, most commonly long-term illness.

What happens to unused annual leave when I leave my job?

Untaken accrued leave must be paid out in cash on termination. This applies regardless of whether the employee resigns, is dismissed, or reaches the end of a fixed-term contract, and it cannot be waived in the employment contract.

Practical Compliance Checklist

If you operate in Greece, your leave management system needs to handle the following at minimum:

Grant 20 working days of paid annual leave in the first year and 25 working days from the second year onwards.
Pro-rate first-year leave based on months worked.
Calculate and pay the επίδομα αδείας as an additional amount equal to normal remuneration.
Run the holiday bonus through standard income tax and social security flows.
Allow employees to take at least half of their leave during the May–October period.
Reject any contract clause that purports to waive statutory leave during employment.
Pay out untaken accrued leave on termination — automatically.

How Leave Balance Helps Employers in Greece Stay Compliant

Managing Greek annual leave correctly across a multi-country workforce — alongside UK, German, French, or Italian teams — is the kind of compliance work that breaks generic spreadsheets. The 20-day first-year minimum, the 25-day uplift from year two, the επίδομα αδείας, and the May–October scheduling rule rarely fit out of the box in a global HRIS.

Leave Balance gives you:

Country-specific entitlement rules for Greece, including 20-day first-year accrual and the 25-day standard from year two.
Holiday bonus tracking so the επίδομα αδείας is reflected alongside leave balances rather than buried in payroll.
Summer-window scheduling that surfaces May–October leave requests with a clear approval trail.
Automatic termination payouts for untaken leave.
Multi-country support with separate policies per entity, all on a single dashboard.

For the wider regional view across the EU, see our guides to Annual Leave Entitlement in France, Annual Leave Entitlement in Germany, and Annual Leave Entitlement in Portugal.

At $10 per month for unlimited employees and unlimited policies, Leave Balance gives you the country-specific rule engine you need without the cost of an enterprise HRIS. Start your 14-day free trial — no credit card required.