In Greece, the labor laws governing overtime are designed to protect employees while ensuring fair compensation for additional work hours. Understanding these regulations is crucial for both employees and employers to maintain compliance and optimize earnings.
Standard Working Hours in Greece
The typical workweek in Greece consists of 40 hours, usually spread over five days, resulting in an eight-hour workday. However, certain sectors or agreements may adopt a six-day workweek, adjusting daily hours accordingly. Recent legislative changes have also introduced provisions for a six-day workweek in specific continuous operation industries.
Defining Overtime: ‘Iperergasia’ and ‘Iperoria’
Greek labor law differentiates between two types of additional work beyond standard hours:
- Iperergasia (Overwork): This refers to work performed beyond the standard daily hours but within certain limits. For employees on a five-day schedule, the first five additional hours per week (one hour per day) fall under iperergasia. For those on a six-day schedule, it’s the first eight additional hours per week (approximately one hour and 20 minutes per day). Compensation for iperergasia is typically at 120% of the regular hourly rate.
- Iperoria (Overtime): Work exceeding the iperergasia limits is classified as iperoria. Employers must notify authorities in advance, and valid reasons are required. Iperoria is capped at three hours per day and 150 hours annually. Overtime compensation is at 140% of the regular hourly rate. Exceeding 150 hours annually requires special permission from the Ministry of Labor, with compensation at 160% of the regular rate.
Overtime Compensation Rates
Overtime pay rates in Greece vary based on the time and duration of the additional work:
- First Two Hours of Overtime on a Regular Working Day: Paid at 120% of the regular hourly rate.
- Subsequent Hours Beyond the First Two: Compensated at 140% of the regular hourly rate.
- Nighttime Overtime: Overtime performed during nighttime hours is compensated at a higher rate, often at 125% of the regular hourly wage for the first hour and 140% for the subsequent hours.
Annual Overtime Limits
The law permits a maximum of 150 hours of overtime per year. Exceeding this limit requires special authorization from the Ministry of Labor and entails higher compensation rates.
Recent Legislative Changes: Six-Day Workweek
In 2023, Greece enacted Law 5053/2023, introducing provisions for a six-day workweek in specific sectors operating continuously around the clock. Under this law:
- Sixth Day Work: Employees required to work on a sixth day are entitled to a 40% increase in their daily wages.
- Daily Limit: Work on the sixth day is limited to eight hours.
- Employer Discretion: Employers can unilaterally decide on the necessity of a sixth working day, provided they notify the labor inspectorate in advance.
Calculating Your Potential Earnings from Overtime
To estimate potential earnings from overtime, consider the following scenarios:
- Standard Overtime (Iperergasia):
- Example: An employee with a regular hourly rate of €10 works an additional hour beyond the standard 40-hour week.
- Calculation: €10 (regular rate) × 1.2 (120%) = €12 per hour.
- Earnings: For five additional hours in a week: 5 hours × €12 = €60 extra.
- Extended Overtime (Iperoria):
- Example: The same employee works three additional hours beyond the overtime limits.
- Calculation: €10 × 1.4 (140%) = €14 per hour.
- Earnings: For three hours: 3 hours × €14 = €42 extra.
- Sixth Day Work:
- Example: The employee works an eight-hour shift on a sixth day.
- Calculation: €10 × 1.4 (140%) = €14 per hour.
- Earnings: 8 hours × €14 = €112 extra.
Key Considerations for Employees and Employers
- Compliance: Employers must adhere to legal requirements, including notifying authorities about overtime and obtaining necessary permissions for extended hours.
- Employee Rights: Employees should be aware of their rights regarding overtime compensation and maximum allowable working hours to prevent exploitation.
- Health and Safety: Both parties should consider the potential impact of extended working hours on health, productivity, and work-life balance.
Conclusion
Understanding Greece’s overtime regulations is essential for maximizing earnings and ensuring compliance with labor laws. By familiarizing themselves with terms like iperergasia and iperoria, both employees and employers can navigate the complexities of overtime work effectively, ensuring fair compensation and maintaining a balanced work environment.