Copyright 2023 Iason Skouzos TaxLaw.
All Rights Reserved.

Back to top

Compensation for off site Work

Iason Skouzos - TaxLaw > Practice Areas  > Labor & Employment  > Compensation for off site Work

Compensation for off site Work

Τhe compensation of employees for off-site work is regulated  by the Joint Ministerial Decision of the Ministers of Finance and Labor no. 21091/1946 (Government Gazette / Β’/ 142/1946) as in force.

According to this JMD), employee is entitled to the following:

  1. a) His/her earnings in full as if he/she was normally employed at the headquarters of the company.
  2. b) Daily allowance/compensation for off-site work, which is independent of the employee’s working hours and is related only to the number of the overnight stays, equal to 1/25 of the legal salary.

When employees working off-site are provided with food and housing by the employer at the place where they were sent, a percentage of 1/4 of the above compensation is paid to them (1/100).

If only food is provided, ½ of the compensation is paid (1/50).

If only housing is provided, 4/5 of the compensation is paid (4/125).

  1. c) Finally, all employees who work off-site, are entitled to receive also all of their travel expenses, which include their transportation expenses (e.g. air tickets, taxis, e.t.c.) i.e. the actual expenses incurred.

It should also note that:

-as per the above reductions (to 1/4 or 1/2 or 4/5) of the employee’s compensation, the provision of food and housing must be offered by the employer and not by a third party out of freedom, free of charge or for reasons of courtesy, unless the third party provides it for the fulfilment of a contractual obligation to the employer, in which case it is deemed to be provided by the employer.

-in the case where breakfast is (only) offered, there is no relevant case law related to a possible reduction of the percentage of the compensation to be paid. However, by interpretation according to the employer’s good faith and welfare obligation towards the employee, it should be considered that in such a case  the 4/5 rate is not affected, as breakfast  constitutes a minimum meal in relation to the obligation to provide full food.

– the amount of the above compensation is independent of the employee’s working hours and does not depend on whether expenses are incurred or not, therefore the employer has no right to inquire whether the employee has done or not the incurred expenses (judgements of Supreme Courts No. 527/1966 and 209/1967).

According to the above JMD, compensation for off-site work is calculated on the basis of the legal salary and not on any higher remuneration paid by the employer (“contractual salary”). Legal salary means the one that is determined by the relevant collective agreement, ministerial or arbitration decision or business agreement  that binds all staff If there is no such an agreement, the legal salary is calculated according to the thresholds set by the  National General Collective Labor Agreement  plus the recognized three years periods

We list below a table which is presenting the compensation rates/per case, according to the thresholds set by the National General Collective Labor Agreement:

Salary and daily allowance

Working experience

 Legal salary Without housing and meals (1/25) With housing and meals (1/100) Only meals (1/50) Only housing  (4/125)
without working experience 650,00 € 26,00 € 6,50 € 13,00 € 20,80 €
with one (three years period) 715,00 € 28,60 € 7,15 € 14,30 € 22,88 €
with two (three years period) 780,00 € 31,20 € 7,80 € 15,60 € 24,96 €
with three (three years period) 845,00 € 33,80 € 8,45 € 16,90 € 27,04 €

*  The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.

error: Content is protected !!