As summer approaches, attention turns to paid leave and the so-called vacation bonus, a key entitlement for employees in the private sector.
Workers taking annual leave are legally entitled to receive their regular pay during their absence, known as their “usual earnings.” This corresponds to the amount they would normally receive if they were working during that period. These earnings include all fixed and regular compensation related to their job.
Certain types of pay are included in this calculation, such as regular work on Sundays, public holidays or night shifts, as well as overtime pay when it is part of a consistent working pattern. Legal overtime that would normally have been performed is also taken into account.
However, penalties for illegal overtime and the proportional share of holiday bonuses are not included in leave pay calculations.
In addition to standard leave pay, employees are also entitled to a vacation allowance. This benefit is calculated in the same way as leave earnings but is subject to legal caps.
For employees on a monthly salary, the allowance cannot exceed half of one month’s salary. For those paid by the day, hour or on a commission basis, the maximum is 13 daily wages.
Greek labour law requires that both leave pay and the vacation allowance be paid in advance, at the start of the employee’s annual leave.
If an employment relationship ends before an employee has taken their entitled leave—whether due to resignation or dismissal—the employer must still pay the corresponding amount as if the leave had been taken.
Employees also have the right to request when they wish to take their annual leave. Employers are required to respond to such requests or grant the allowance within two months, according to labor inspection.
