As Greece’s summer vacation season reaches its peak, attention is turning to vacation pay, one of the country’s key employment benefits designed to provide financial support to workers before they take annual leave.

Under Greek labor law, employers are required to pay the vacation allowance together with the employee’s regular wages before the start of the worker’s annual leave. The payment must be made when the leave begins and cannot be offset against wages that exceed the legal minimum.

Employees are entitled to paid annual leave, which is granted following consultation with their employer. However, employers are legally required to approve a leave request within two months of its submission.

How Vacation Pay Is Calculated

The amount of the vacation allowance depends on both the employee’s method of payment and length of service with the employer.

For employees paid a monthly salary, the allowance can be up to half of one monthly salary. For employees paid on a daily wage, it can amount to as many as 15 daily wages.

Regardless of the payment method, the allowance cannot exceed the equivalent of 15 days’ pay for salaried employees or 13 days’ pay for employees paid by the day or under other compensation arrangements.

If an Employer Refuses Leave

If an employer refuses to grant annual leave requested by an employee, Greek law provides that the employee is entitled to receive vacation pay with a 100% increase.

During annual leave, employees are entitled to receive their regular earnings—the same wages they would have received had they continued working during that period.

The law also prohibits employers from dismissing employees while they are on their statutory annual leave.

When Summer Leave Must Be Granted

Summer annual leave must be scheduled between May 1 and September 30. In addition, at least half of a company’s workforce must receive their vacation during that period.

Vacation pay is considered an important source of financial support for employees during the summer months, and its timely payment is a legal obligation for employers.