.svg)
Capital City
Nicosia
Currency
Euro
(
€
)
Timezone
GMT +2
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
15.40%
Languages
Greek
Turkish
Capital City
Nicosia
Currency
Euro
(
€
)
Timezone
GMT +2
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
15.40%
Languages
Greek
Turkish
Cyprus's convenient tax structure and reliable economic stability make it an excellent location for international operations.
A significant number of Cypriot people have completed postsecondary education, contributing to a highly educated and talented labour population.
Cyprus is strategically located at the crossroads of Europe, Asia, and Africa. This geographical advantage can be beneficial for businesses involved in international trade or seeking a central location for operations.
English is widely spoken and used in business in Cyprus. Additionally, many Cypriots are multilingual, with proficiency in languages such as Greek and often other European languages.
Businesses can only operate smoothly in Cyprus if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Cyprus below, to avoid any compliance issues.
In Cyprus, the Labour Law does not require employment contracts to be in written form. However it is compulsory for employees to receive a written statement detailing their obligations, encompassing all aspects of the job. The key components included in the contract include:
We can help you get a new employee started in Cyprus quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
The working hours in Cyprus differ across various employment sectors and are subject to collective agreements, with the majority of employees typically working between 38 and 40 hours per week.
The maximum working hours in Cyprus are set at 48 hours per week and 10 hours per day, encompassing any overtime. Although there are no legal regulations governing compensation for overtime work in Cyprus, it is typically determined through individual or collective agreements.
Employees undergo a minimum six-month probation period where employers can terminate them without giving a reason.
.webp)
1 January- 31 December is the 12-month accounting period that businesses in Cyprus use for financial and tax reporting purposes.
The payroll cycle in Cyprus is usually monthly, with employees being paid on or before the last day of the month.
The minimum wage for employees in Cyprus is typically 6.25 EUR per hour, amounting to ~1,000 EUR per month for a typical 40 hour work week.
It is not mandatory, but it is a common practice to provide employees with a 13th salary in December.
Employer payroll contributions are generally estimated at an additional 14.9% on top of the employee salary in Cyprus.
In Cyprus , the typical estimation for employee payroll contributions cost is around 10.95%.
The personal income tax in Cyprus varies between 0% and 35%, and it is determined based on progressive rates. Various factors, including household status and the number of dependents, can influence the overall tax rates.
If one is insured in Cyprus through employment, self-employment, or voluntary coverage, they can receive an old-age pension at 65. To qualify, they need to meet certain insurance conditions. The monthly social pension is 81% of the full basic statutory pension and is paid by the Social Insurance Fund.
.webp)
The annual leave entitlement in Cyprus is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
In Cyprus, public holidays that happen to fall on the weekend are typically not carried over or observed.
Employees on a five-day workweek are entitled to 20 working days of leave, while those on a six-day workweek are entitled to 24 working days of leave within one year of employment. The employment contract or collective agreement may stipulate additional days of annual leave with pay.
Pregnant employees with 180 consecutive days of work for the same employer are entitled to 22 weeks of paid leave. Two weeks must be taken before the child's birth. During this period, the employee will receive 72% of their salary, and Social Security will be responsible for providing this pay.
Employees with 180 consecutive days of work for the same employer are eligible for 14 days of paid paternity leave. This leave must be taken at a time between the birth of the child and 2 weeks after the end of the maternity leave. During this period, the employee will receive 72% of their salary, with Social Security being responsible for providing this pay.
Employees are eligible for paid sick leave for a maximum of 156 days. The payment rates and responsible payers vary based on the length of the sick leave:
Parents employed continuously with the same employer for six months or more are entitled to unpaid parental leave for a duration of 18 weeks per child, applicable to children up to the age of eight.
In the event of the death of a direct family member, employees are eligible for: 5 days of paid leave for the death of a child or spouse, 3 days for the death of a parent or sibling or 1 day for the death of another family member.
Employees called to perform military service are covered by assimilated insurance, provided by the Social Insurance Services.
Employment contracts may be terminated based on valid reasons. Termination without notice may also occur in situations involving a breach of the employment contract. The reasons for termination include but not limited to:
Notice periods are contingent on the duration of an employee's tenure with the employer. The breakdown is as follows:
Severance pay entitlements is determined by the employee's duration of service with the employing organization. The scale is structured as follows:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
Back to Top
.svg)
Copied to Clipboard
Where to next?
Your “everything you ever needed to know” guides to compliant global employment around the world.
.png)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg)
.svg){kind=icon}
.png)
.webp)
