The rules on severance pay in detail

Statutory termination pay must be paid in Greece if an indefinite employment contract has lasted at least one full year and the termination was at the initiative of the employer. The calculation depends on whether the termination was done with or without notice. If notice is given, the severance pay is reduced by 50% and notice periods can last up to four months. It also depends on the number of years of service, as follows:

Years of service Severance pay
1 full year - 4 years  2 months
4 full years - 6 years  3 months
6 full years - 8 years 4 months
8 full years - 10 years   5 months
10 full years 6 months
   11 full years    7 months
  12 full years   8 months
 13 full years  9 months
14 full years 10 months
15 full years 11 months
     16 full years     12 months

 

For employees who on 12 November 2012 had completed 17 full years, an additional amount of severance pay is given as follows:           

 

Years of service Additional amount
For 17 full years + EUR 2,000
For 18 full years  + EUR 4,000
For 19 full years  + EUR 6,000
For 20 full years  + EUR 8,000
For 21 full years  + EUR 10,000
For 22 full years + EUR 12,000
For 23 full years + EUR 14,000
For 24 full years + EUR 16,000
For 25 full years + EUR 18,000
For 26 full years + EUR 20,000
For 27 full years + EUR 22,000
For 28 full years + EUR 24,000

                                     

The monthly salary includes all wages and benefits in kind or in cash, as long as the latter are considered as wages.  The wage taken into account is the wage of the month preceding the termination, increased by one sixth, and is currently capped at EUR 6,283.20. If more favourable terms have been agreed in the employment contract in relation to the severance pay and the notice period, those terms will apply.

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Author: Kremalis Law Firm

Date: December 2018

 

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