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Talent Wiki – Cyprus

Your quick guide on talent and labor compliance norms in Cyprus

Capital

Nicosia

Currency

Euro

Languages

Greek and Turkish

Payroll Frequency

Weekly or Monthly

GDP per Capita

$29,534.74

Employer Tax

22.9%

Talent Overview

Cyprus’ rich cultural heritage is largely attributed to its 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 as follows:

University of Cyprus

Ranking

Local: 1

World: 1083

Dogu Akdeniz Üniversitesi

Ranking

Local: 2

World: 1789

University of Nicosia

Ranking

Local: 3

World: 21885

Yakin Dogu Üniversitesi

Ranking

Local: 4

World: 2716

European University Cyprus

Ranking

Local: 5

World: 3815

Salary Data

Some of the common jobs with average monthly salaries in Cyprus are mentioned below;

Job Title Average Monthly Salary (EUR) Average Monthly Salary (USD)
Financial Manager 4,400 4655.13
General Manager 3,830 4052.08
Business Development Manager 3,340 3533.67
Financial Analyst 2,660 2814.24
Business Analyst 2,620 2771.92
Project Manager 2,410 2549.74

Talent Sourcing Tips

Top Local Job Boards

Ergodotisi ; Cyprusjobs ; Kariera

Number of LinkedIn users

393,000

Top Recruitment Agencies

CareerFinders ; Alliance Recruitment Agency ; HR Innovate

Employing in Cyprus

Expanding your business in this Mediterranean country would involve legally complying with the regulations for employing locals. This section will give the basic know-how for 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 understand.

Probation Period

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

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year’s Day National Holiday
6 Jan Epiphany National Holiday
27 Feb Green Monday National Holiday
25 Mar Greek Independence Day National Holiday
1 Apr National Day National Holiday
14 Apr Orthodox Good Friday National Holiday
16 Apr Orthodox Easter Sunday National Holiday
17 Apr Orthodox Easter Monday National Holiday
1 May Labour Day National Holiday
5 Jun Orthodox Whit Monday National Holiday
15 Aug Assumption Day National Holiday
1 Oct Cyprus Independence Day National Holiday
28 Oct Ochi Day National Holiday
24 Dec Christmas Eve National Holiday
25 Dec Christmas Day National Holiday
26 Dec 2nd Day of Christmas National Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 20 days Yes
Sick Leave 0 days Yes
Maternity Leave 18 weeks Yes

Payroll

Payroll Cycle

Payroll in Cyprus may be paid weekly or monthly.

Minimum Wage

The national minimum wage in Cyprus is EUR 940.

Overtime Pay

The standard working hours in Cyprus is 48 hours per week. Overtime pay is usually agreed upon between the employer and the employee and is not regulated by the law in Cyprus.

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.

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

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.

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.

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 contributes to 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.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

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%
Weekdays 150%

Visa & Immigration