Designing a competitive benefits plan can make your business stand out in a new market. With optimized employee benefits planning in Greece, your company can continue to grow and deepen employee engagement in the region.
Greece compensation laws
An employee benefits plan contributes to the growth of your company. If you design programs that are competitive within the market, the benefits you offer can serve as a strong incentive for job seekers to apply for open roles. Once you have established a workforce, these provisions will improve morale and encourage employees to stay long term.
Fringe benefits, or provisions not required by law, will make your business competitive. These can include:
- Meal allowance
- Company car
- Transportation stipends
- Supplemental insurance
Guaranteed benefits in Greece
While supplemental benefits will make your company stand out, employers have legal obligations to consider first. In Greece, employers must provide:
- Public holidays off
- Paid annual leave
- Social security contributions
- Paid maternity leave
- Work from home allowance
Greece benefits management
When creating a benefits plan, the first thing to consider is your company’s financial resources and employees’ needs. While these factors may seem at odds with each other at times, it’s possible to find a balance with the right approach.
1. Think about your resources and goals.
Overextending financial resources can limit your company’s growth, so it’s essential to have clear goals to determine how your benefits plan may help you work towards them. For example, if you want to focus on retention, you may opt for a smaller workforce with a more generous benefits package. Consider your company’s expected revenue and expenses for the year and build a budget based on that.
2. Research the market and learn about employee needs.
Companies can only become competitive in the market if they understand it. It’s important to take time to research different competitors in the area and the benefits packages they offer. The standards in a particular market or industry often inform what local workers expect from employers.
To get a better understanding of employees and their needs, conduct interviews or distribute surveys. This process can help you choose benefits that will encourage job seekers to apply for vacancies.
3. Create your benefits plan.
Based on your findings, you can develop a benefits plan that aligns with your budget and helps you stand out within the market. You can start by allocating funding to any required benefits first, then use the remaining budget for some of the top provisions you learned about in your research.
Average cost of benefits
The cost of benefits varies widely between businesses because every employer offers a different plan. With factors like location, industry, and size affecting the benefits a company provides, an average cost wouldn’t be a helpful metric. Instead, it’s best to create a benefits budget based on your company’s unique offering and needs.
How to calculate benefits
Some benefits calculations vary depending on the provision. Companies can take their total budget and divide it by the number of employees to distribute the funds evenly.
Other benefits may require more complex calculations. The labor laws offer guidance for required provisions, like social insurance contributions. Currently, employers must contribute 22.29% to social insurance, and employees are responsible for 14.12%.
How are employee benefits taxed in Greece?
Income tax laws recognize benefits as a part of employment earnings, and they should be treated as such. Companies are responsible for paying income tax through employees’ paychecks. Any tax calculations should factor in the value of provided benefits.
These additions to income can include cash bonuses and stipends. Some benefits might require a determined cash value, like a company car or gym membership.
Employee health benefits in Greece
Under Greece’s universal healthcare system, a mix of public and private providers extend free and low-cost access to residents. The Social Insurance Institute covers many services within the healthcare sector, and contributions to this fund are mandatory. Employers are responsible for making social security contributions through employee paychecks and on behalf of workers.
Private insurance schemes are not required by law, although employers may choose to provide them to cover any expenses outside of the publicly funded system.
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