As summer approaches and employees begin planning their vacations, this year’s vacation allowance is expected to increase for a large portion of Greece’s private-sector workforce. The recent adjustment to the minimum wage, which took effect on April 1, directly impacts a range of employee benefits, including vacation pay.
The increase in the minimum wage from €880 to €920 gross per month translates into higher earnings for thousands of salaried workers. At the same time, changes are being introduced to the leave approval process, giving employees greater flexibility to choose when they take time off based on their personal or family needs.
Higher Vacation Pay Due to New Minimum Wage
Greek labor law stipulates that all employees with an active employment relationship are entitled to annual leave with full pay. Employers are required to approve and grant leave within two months of receiving a relevant request.
The increase in the minimum wage also raises vacation pay, as the benefit is calculated based on an employee’s regular earnings. As a result, workers earning the minimum wage will receive higher compensation during their summer vacation period.
How Vacation Pay Is Calculated
The amount of vacation pay depends on the employee’s compensation structure and is subject to specific maximum limits. For salaried employees, the allowance is equal to half of a monthly salary, without exceeding the equivalent of 15 days’ pay.
For employees paid on a daily wage basis or through commissions, the allowance is equal to 13 daily wages. This entitlement applies exclusively to individuals with an active employment relationship, while unemployed individuals receiving regular unemployment benefits are not eligible for a comparable payment.
Employees can calculate the amount they are entitled to receive through available online tools and information platforms.
Summer Leave Period and Employer Obligations
A special provision applies between May 1 and September 30: at least 50% of a company’s workforce must take their annual leave during this period.
Vacation pay may be paid either in full at the start of the leave period or in installments alongside the wages corresponding to the employee’s absence.
New Rules for Splitting Annual Leave
The new legislation introduces changes to how annual leave can be taken. Until now, annual leave was generally granted as a single uninterrupted period unless the employee submitted a written request to divide it. The law also required that part of the leave be taken consecutively to ensure adequate rest.
Under the new framework, greater flexibility is provided. By mutual agreement between employee and employer, annual leave may be divided into multiple periods within the same year, including up to four separate segments.
In practice, many businesses had already adopted this approach through informal arrangements. The new legislation effectively formalizes a practice that was already widespread across the labor market.
Vacation Days Based on Years of Service
Under a five-day workweek, employees are entitled to 20 vacation days during their first year of employment, 21 days after completing 12 months of service, and 22 days from the third year onward.
After 10 years with the same employer—or 12 years of total work experience—annual leave increases to 25 days. After 25 years of service, employees are entitled to 26 vacation days.
Under a six-day workweek, employees are entitled to 24 vacation days in the first year, 25 in the second year, and 26 from the third year onward. After 10 years of service, annual leave rises to 30 days, while employees with more than 25 years of service are entitled to 31 vacation days.
Despite the new options for splitting annual leave, August remains the most popular month for summer vacations among Greek workers. However, industries with intensive summer activity—such as distilleries, breweries, transportation services, and retail businesses in tourist destinations—require careful planning from both employers and employees.
