Summer leave in the private sector: How it's distributed and what changes with the new framework

As the summer season begins, Greek private sector employees can anticipate a higher leave allowance in 2026, thanks to a recent adjustment in the minimum wage. The increase in the minimum wage, effective April 1, 2026, directly affects various benefits, including the crucial leave allowance.

The minimum wage has been raised from 880 to 920 euros gross, resulting in increased earnings for thousands of workers. Concurrently, changes are being introduced to the leave application process, aiming to provide employees with greater flexibility in scheduling their time off based on personal or family needs. This adjustment is expected to make planning vacations more manageable for many.

Under Greek labor law, all employees with an active employment relationship are entitled to annual leave with full pay. Employers are obligated to approve and grant this leave within two months of the employee's request. The leave allowance, calculated based on regular earnings, will see an increase for those earning the minimum wage, meaning they will receive higher amounts during their summer holidays.

The calculation of the leave allowance varies depending on the payment method. For salaried employees, the amount is equivalent to half of their monthly salary, capped at fifteen days' worth of pay. For those paid daily wages or commissions, the allowance equals thirteen daily wages. This entitlement is exclusive to actively employed individuals; the unemployed receiving regular benefits are not eligible for this specific provision.

New regulations are also enhancing flexibility in how leave can be taken. Previously, annual leave was typically taken as a single block, unless an employee formally requested to split it. The new framework allows for leave to be divided into up to four separate periods within the same year, provided there is an agreement between the employee and employer. This change formalizes a practice already common in many workplaces, offering a more adaptable approach to annual leave management.