Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Cyprus

Your quick guide on talent and labor compliance norms in Cyprus
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Capital
Nicosia
Currency
Euro
Languages
Greek and Turkish
Payroll Frequency
weekly or monthly
GDP per Capita
30,995.78
Employer Tax
22.9%

Supplementary Guide for Employment and Expansion in Cyprus

Talent Overview

Cyprus’ rich cultural heritage is largely attributed to their geographical location, making them the bridge between the eastern and the western countries. It is a popular tourism destination in the Mediterranean area and has been a major contributor to the country’s economy. The services sector alone makes up 74.1% of their GDP and has provided 72.9% of their working population with employment. 

Major Economic Hubs:

Nicosia, Limassol, Larnaca

Skills in Demand:

Accountants, Dentist, Engineers, Nurses, IT developers

Local Universities

The top local universities in Cyprus are listed below:

University of Cyprus

RANKING

Cyprus: 1

World : 1205

University of Cyprus

RANKING

Cyprus: 2

World : 1528

University of Cyprus

RANKING

Cyprus: 3

World : 2334

University of Cyprus

RANKING

Cyprus: 4

World : 2357

University of Cyprus

RANKING

Cyprus: 5

World : 3340

Salary Data

The table below shows the average monthly salaries of some jobs in Cyprus.

No. Job Title Monthly Salary Range (in EUR) Monthly Salary Range (in USD)
1 Technical Product Engineer 1,010 - 3,200 1,102.09 - 3,491.76
2 Software Engineer 950 - 3,110 1,036.62 - 3,393.55
3 Data Analyst 1,740 - 3,060 1,898.64 - 3,339.00
4 UX Designer 770 - 2,210 840.20 - 2,411.50
5 Project Manager 1,230 - 3,720 1,342.15 - 4,059.17
6 Sales Executive 1,350 - 3,970 1,473.09 - 4,331.96
7 Accounting and Finance 900 - 4,470 982.06 - 4,877.55

Talent Sourcing Tips

Top Local Job Boards:
Ergodotisi ; Cyprusjobs ; Kariera

Number of LinkedIn users:
358,000

Top Recruitment Agencies:
CareerFinders ; Alliance Recruitment Agency ; HR Innovate

Employing in Cyprus

Expanding your business in this mediterranean country would involve having to legally comply with the regulations for employing locals. This section will give the basics know-how in onboarding Cypriot employees. 

Employee Contract

There is no language requirement for employment contracts in Cyprus. It can be written in any language that the employer and employee understands. 

Probation Period

The Probation period for newly hired employees in Cyprus ranges from 26 to 108 weeks

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
6 Jan Epiphany National holiday
7 Mar Green Monday National holiday
25 Mar Greek Independence Day National holiday
1 Apr Cyprus National Holiday National holiday
22 Apr Good Friday (Orthodox) National holiday
25 Apr Easter Monday (Orthodox) National holiday
26 Apr Orthodox Easter Tuesday (banks only) Bank holiday
1 May Labour Day/May Day National holiday
13 Jun Orthodox Pentecost Monday National holiday
15 Aug Assumption of the Virgin Mary National holiday
1 Oct Cyprus Independence Day National holiday
28 Oct Ochi Day National holiday
25 Dec Christmas Day National holiday
26 Dec Boxing Day National holiday

Employee Leaves

Date Name Type
1 Jan New Year's Day National holiday
6 Jan Epiphany National holiday
7 Mar Green Monday National holiday
25 Mar Greek Independence Day National holiday
1 Apr Cyprus National Holiday National holiday
22 Apr Good Friday (Orthodox) National holiday
25 Apr Easter Monday (Orthodox) National holiday
26 Apr Orthodox Easter Tuesday (banks only) Bank holiday
1 May Labour Day/May Day National holiday
13 Jun Orthodox Pentecost Monday National holiday
15 Aug Assumption of the Virgin Mary National holiday
1 Oct Cyprus Independence Day National holiday
28 Oct Ochi Day National holiday
25 Dec Christmas Day National holiday
26 Dec Boxing Day National holiday

Payroll

Payroll Cycle

Payroll in Cyprus may be paid weekly or monthly

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Minimum Wage

There is no general minimum wage set in Cyprus. However, in the cases of cleaners and security guards, the minimum wage in the first six months is 870 EUR. After the 6 months, their minimum wage will be 924 EUR.

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Overtime Pay

Overtime pay is usually agreed upon between the employer and the employee and is not regulated by the law in Cyprus. However, there is an exception for employees working in shops and retail. Below are the corresponding pay they are eligible to receive when having an overtime.

Type of Overtime Overtime pay
Scheduled time offs, Holidays and Sundays 200%
Any other day (not mentioned above) 150%
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Health Examination Clause

Bonus

13th Month Pay

A 13th month pay is not mandatory in Cyprus. 

Employee Benefits

Cyprus has a comprehensive social security system that covers the following areas for participating employees:

  • ~Unemployment benefits
  • ~pension, workers’ medical benefits
  • ~sickness and maternity benefits
  • ~disability pension.
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Taxes

Employer Payroll Tax

Type of Contribution Rate
Social Security 8.3%
Redundancy Fund 1.2%
Industrial Training and Development 0.5%
Social Cohesion Fund 2%
General Healthcare System (GHS) 2.90%
Central Holiday Fund (if company is not exempted) 8%

Employee Payroll Tax

Type of Contribution Rate
Social Security 8.3%
General Healthcare System (GHS) 2.65%

Employee Income Tax

Taxable Salary Range (in EUR) Tax Rate Accumulated Tax (in EUR)
0 - 19,500 0 0
19,501 - 28,000 20 1,700
28,001 - 36,300 25 3,775
36,301 - 60,000 30 10,885
60,001 and above 35

VAT

The standard VAT rate in Cyprus is 19%.

Offboarding & Termination

Termination Process

The termination process in Cyprus is regulated by the Termination of Employment legislation of 1967. Dismissal of an employee may happen due to redundancy, resignation or misconduct. 

In the case of termination due to misconduct, an employer will have a right to immediately dismiss the employee without any notice or compensation. Below are the following offences that the employee must have committed: 

  • ~Serious offence performed during an employee’s hours of work
  • ~Criminal offence
  • ~Improper behaviour during an employee’s hours of work
  • ~Repeated violations and disregard of work rules as stated in the employee’s contract.

Notice Period

The notice period will vary depending on whether an employee is under probation or not. For those under probation, notice period ranges from 1 to 3 weeks. For those outside probation, notice period will be 1 to 8 weeks. 

Severance Pay

Employees terminated due to redundancy are eligible to receive compensation if they have served 104 weeks of continuous service with the company. The funds for this payment is taken from the redundancy fund that the employer is contributing each payroll period. Below is the statutory compensation: 

Years of continued service Notice period
Up to 4 years 2 weeks’ wages for each year of continued employment
5 to 10 years 2.5 weeks’ wages for each year of continued employment
11 to 15 years 3 weeks’ wages for each year of continued employment
16 to 20 years 3.5 weeks’ wages for each year of continued employment
21 to 25 years 4 weeks’ wages for each year of continued employment

Visa and Immigration

For foreigners intending to work in Cyprus, they must accomplish and apply for the following documents:

  • ~Cyprus work permit - This serves as your authorization to work in the country. Employers are required to provide this for their employees.
  • ~Cyprus work visa - This allows the employee to enter the country for employment purposes. Validity of this document is 90 days
  • ~Residence permit - This allows foreign employees to stay in the country for a period longer than 90 days.
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