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Starting a Business in Cyprus

How to Hire Employees in Cyprus: A Step-by-Step Guide

Known for its global trade-related openness and business investment possibilities, Cyprus is highly popular for its infrastructure and fast economic growth. 

Cyprus has been an EU member since 2004 and has used the Euro  as the official currency since 2008. As a member of the Eurozone community, the country ensures stability and safety for business practice. It is a gateway to the market in the European Union and offers access to markets having 500 million plus EU citizens.

The availability of a skilled workforce, developing infrastructure, and government assistance to protect investors make it a premiere location for international investors to hire in the country. Companies hiring employees in Cyprus need to comply with local rules and regulations. Take a look at details about how to recruit employees in Cyprus.

Things to Know Before Hiring in Cyprus

Begin the recruitment and selection in Cyprus with a clear understanding of a few pointers around such hiring processes-  

  1. It is best to monitor and keep the traditions and cultural norms in mind. This makes employers cultivate and initiate healthy professional relationships.
  2. Ensure all job postings are compliant with legal terms. Mentioning the related benefits plus perks on the job is essential.
  3. Establishing a reputation for providing a quality work environment and favorable employee treatment.

When you begin the hiring process in Cyprus, understanding employment practices is essential-

  • For basic recruitment processes in Cyprus, employers must ensure no bias against employees with a disability or similar factors.
  • Employers can request a medical test from a prospect against full payment from the employer’s end.
  • The official languages in Cyprus are Greek and Turkish.
  • Trade unions in Cyprus are standard, and every employer needs to keep the union policies in mind, along with collective trade agreement-related laws, for drafting an employment contract.

Employment contract

In Cyprus, employment contracts are meant for employees who could be –

  • Temporary workers
  • Part-time workers
  • Full-time workers

The Cyprus Labor Law has no mandates for employment contracts in written form. However, an employee’s written statement of obligation, outlining every detail around the job, is mandatory. The things that go on to the contract or written outline of employment are-

  • Registered company details
  • Mention of parties 
  • Commencement of employment and duration
  • On-job role and workplace details
  • Salary and benefits
  • Holidays and leaves
  • Notice period linked to employment termination

Probation 

  • Any employment role has its initial 26 weeks counted as probation.

Termination and notice period

  • Termination cannot be made during the probation period but requires no notice in case of business dissolution or when incompetence is involved. In any other scenario, the notice period varies per the tenure of employment. Read below-
SERVICE TENURE OR EMPLOYEE AGENOTICE PERIOD
26 to 52 weeks of serviceOne week 
52 to 104 weeks of serviceTwo weeks
104 to 156 weeks of serviceFour weeks
156 to 208 weeks of serviceFive weeks
208 to 259 weeks of serviceSix weeks 
260 to 311 weeks of serviceSeven weeks
More than 312 weeks of serviceEight weeks

Working hours and breaks

  • The general work hours in Cyprus are between 38 to 40 hours weekly
  • The rest period is allowed lesser than 11 hours every 24 hours
  • Employees are entitled to weekly rest of 35 hours
  • Employees stand entitled to a rest of 15 minutes after 6 hours’ work

Overtime

  • Overtime work cannot go over 48 hours of work weekly.
  • The pay is subject to collective agreements, industry and mutual agreement of employee and employer.

Payroll

  • Salaries get paid weekly or monthly to employees in Cyprus.

Minimum wage

  • The minimum wage rate is EUR 940 monthly, which applies only to specific industries.

Maternity & paternity leaves

  • Maternity leave is allowed at 72% payment of wages for 18 weeks.
  • Mothers are allowed 22 and 26 weeks of leave for second and subsequent births.
  • Paternity leave is allowed for 14 days at the same payment structure as above, within 16 weeks of childbirth.
  • Unpaid parental leaves of up to 18 weeks are allowed for both mother and father.

Annual leave

Employees are entitled to 20 days of paid annual vacation leave and 24 days if working on a six-day work week.

Other leaves

  • Sick leaves are not paid at the employer’s end, but social security contributions might cover the same for 156 days and could be extended further. 
  • All other leaves are not mandated but could be in place per terms of collective agreements.

Holidays for employees             

The list of public holidays in Cyprus include-

OCCASIONDATE
New Year’s Day             1 January
Epiphany            6 January
Clean Monday Variable
Greek Independence Day  25 March
Cyprus National Day 1 April
 Good Friday Variable
Holy Saturday Variable
Easter SundayVariable
Easter Monday Variable
Easter TuesdayVariable
Labour Day 1 May
Pentecost Monday Variable
Dormition of the Theotokos15 August
Cyprus Independence Day1 October
Greek National Day 28 October
Christmas Eve24 December
Christmas Day25 December
Boxing Day26 December

Social security

Employers pay 22.9% as social security contribution from gross salary, while employees pay 10.95% from gross salary.

Taxes

Personal income tax is applied at a progressive rate as below-

INCOME RANGETAX RATE IN %
Up to EUR 19,5000
EUR 19,500-EUR 28,00020
EUR 28,000-EUR 36,30025
EUR 36,300-EUR 60,00030
More than EUR 60,00035

The Cost of Hiring an Employee in Cyprus

The recruitment fees in Cyprus vary from company to company depending upon the business’s recruitment process. The top costs for hiring in Cyprus are-

  • Job advertisement expenses
  • Onboarding or training costs
  • Legal costs
  • Taxes 
  • Salary and benefits
  • Social security and bonuses, if any

What Does a Company Need to Hire Employees in Cyprus?

When hiring in Cyprus, certain specifics apply to the process of recruitment in Cyprus as under-

  • Agency hiring cost
  • Company registration cost
  • Contract, union agreements, and seal costs
  • Bank account opening and deposits
  • Notarization expenses
  • Social Security registration costs
  • Work visa costs

Various Options for Hiring Employees in Cyprus                                                       

When employers have begun planning recruitment in Cyprus, the following options are at hand-

  • An EOR service provider for Employer of Record (EOR) can help. Multiplier helps with solutions for company needs without having to set up a specific entity in Cyprus.
  • You can directly hire employees in Cyprus using a qualified team for HR management. The process remains traditional in that the initial shortlisting is done with introductory telephonic interviews. Post this, an interview schedule is sent over, and once the same occurs, the board adjudges the right person for the job.

The Steps to Hiring in Cyprus

There are no hard-and-fast rules around the steps for recruiting in Cyprus. The process depends on the types of industry and job-post offered. Steps of the standard hiring process in Cyprus are:

1. Advertise openings

  • Advertise any openings on social media portals, websites, and job boards. 
  • Mention all job details and qualification requisites for the vacant job position.

2. Interacting with potential hires

  • Employers will have an early interactive round via phone or video call. And discuss the job scope. 
  • Based on the telephone conversation, companies can schedule an interview with the candidates.

3. Scheduling interview

  • An interview round generally occurs to get to know candidates better while helping judge their core strengths.
  • Companies can also organize assessments and skill tests depending on the job requirements.

4. Selection of candidates

  • The final selection is confirmed and communicated to all selected candidates over a call or via email. The following steps include an offer letter and onboarding related to the job.
  • In Cyprus, the system of Ergani has been recently introduced since 2021. This is an employment certificate in an electronic form issued when an employee starts work. The recruitment process in Cyprus is gradually migrating online to ergani.mlsi.gov.cy, to negate bureaucracy. 
  • Employers must maintain a register for hiring dates and all employees’ data.

Let Multiplier be Your EOR Platform in Cyprus

Hiring and training employees for a job involves tedious work at multiple layers, including shortlisting candidates, interviews, background checks, etc. It begins with a job posting and finally offers the same to a candidate.

You may hire any PEO-EOR platform with a good reputation, such as Multiplier, for all expert assistance while hiring. Our expert team helps employers using details of the relevant recruitment process in Cyprus with SaaS-based Employer of Record solutions. Multiplier helps employers understand all local laws to close in on the hiring process in Cyprus.

Frequently Asked Questions

The official languages are Greek or Turkish, with translated copies made on need.

In Cyprus, the Office of the Commissioner for Administration and Human Rights (Ombudsman) has been in place since 2004 to resolve workplace discrimination issues.

Yes, this is allowed with the prospect’s prior consent.

Need help hiring in Cyprus?

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