How To Hire And Pay Employees In Cyprus
Emerald Technology's guide to hiring employees in Cyprus
Euro is the official currency with the symbol €, EURO.
Estimated at 14.9% of employees salary.
Emerald Technology can onboard employees in 5 days
Greek and Turkish are most common. Greek is the majority language and is spoken by the Greek Cypriot population, while Turkish is spoken by the Turkish Cypriot population. Additionally, English is widely used in business, education, and government.
Typically follows a monthly schedule.
GROW YOUR TEAM IN CYPRUS
TABLE OF CONTENTS
NO ENTITY, NO PROBLEM
To start growing your team in Cyprus, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Pros and Cons of hiring in Cyprus
Cyprus offers numerous advantages for businesses considering employee hiring. With a skilled and multilingual workforce, a business-friendly environment, and EU membership, it presents an appealing destination. Its strategic location, English proficiency, and high quality of life further enhance its attractiveness. However, businesses should be aware of potential challenges such as labour costs, bureaucratic hurdles, and a limited domestic market. Careful consideration of these factors is essential when evaluating Cyprus as a hiring location.
Why Cyprus is good for remote workers
Cyprus is emerging as an ideal destination for remote workers seeking a Mediterranean lifestyle and work-life balance. Its favourable time zone, high-speed internet, and safe environment provide a conducive setting for remote work. The cost of living is reasonable, and a rich cultural heritage offers opportunities for exploration and networking. Moreover, Cyprus offers various residency options for remote workers, making it easier to live and work legally in this attractive Mediterranean setting.
START GROWING YOUR REMOTE WORKFORCE NOW
Employer Costs
| Cost | Rate |
| Social Security | 8.3% |
| Redundancy Fund | 1.2% |
| Industrial Training Fund | 0.5% |
| Social Cohesion Fund | 2% |
| GESY (NHIS) | 2.90% |
Benefits
Mandatory
Employers in Cyprus are required to offer the following benefits to all full-time employees:
- Social Insurance
- Public Health Insurance
- Redundancy Fund
Additional
Some employers like to offer additional benefits to improve employee retention and satisfaction.
- Private Healthcare
Employment
Contract
Contracts for employment in Cyprus can be in either English or Greek.
- Name of both employee and employer
- Start Date
- Workplace details
- Length of employment
- Working hours
- PTO
- Job Description
- Salary, other compensation, and benefits
- Termination conditions
Probation Period
A probation period is not mandatory in Cyprus. The maximum period allowed is six months, and can be extended to two months, but must be agreed by employee and employer.
Emerald Technology can create compliant contracts in Cyprus within 48 hours.
Insurance
Healthcare
Employers must provide healthcare insurance for employees. They must contribute to the General Healthcare System on behalf of their employees.
Social Security
Anyone working in Cyprus must register with the social security service. Contributions must be made so an employee has access to benefits such as:
- Sickness Pay
- Healthcare
- Accident at work and occupational diseases
- Pension
- Widows' pension
- Orphans' benefit
- Maternity and Paternity
- Unemployment
Both employers and employees must contribute.
Leave Policy
Maternity Leave
Expectant mothers in Cyprus are entitled to 18 weeks of paid maternity leave for one child, 22 weeks for two and 26 for any subsequently after. The maternity allowance offered is 72% of the weekly wage.
In the case of widows, they are entitled to 23 weeks of parental leave.
Each parent is all offered seven weeks of parental leave to care for young children (below eight).
Paternity Leave
Fathers in Cyprus are given two weeks of paid paternity leave and can be used at any of the maternity leave. The paternity benefit is set by the Social Insurance Law at 72% of the weekly wage.
Sickness Leave
Sick leave/ benefit is offered to employees who are incapable for work and are aged between 16 and 63. The benefit is not payable until 3 days into the sickness leave and cannot exceed 156 days for each period of interruption of employment. The benefit may be extended another 156 working days in the same period, provided that the insured person meets the requirements for invalidity pension, but they are not expected to remain permanently unable to work.
Onboarding
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
- Passport / ID
- Residence Certificate
- Income Tax Declaration IR59 - 2022
Emerald Technology can onboard employees in Cyprus within 5 days.
Resignation and Dismissal
An employer may end employment once a probation period has ended must have a statutory reason such as collective dismissal, retirement, disciplinary dismissal, incapacity, circumstances that prevent the provision of work, or objective dismissal. Please be aware this list is not exhaustive.
An employer is wishes to terminate an employment contract, after the period of at least 26 weeks, should give a minimum notice, depending on the length of employment.
| Period | Notice |
| From 26 to 51 weeks | 1 week |
| From 52 to 103 weeks | 2 weeks |
| From 104 to 155 weeks | 4 weeks |
| From 156 to 207 weeks | 5 weeks |
| From 208 to 259 weeks | 6 weeks |
| From 260 to 311 weeks | 7 weeks |
| From 312 and over | 8 weeks |
Severance
Employees are entitled to severance pay if the dismissal was non-voluntary dismissal by an employer for non-disciplinary reasons. It depends on the length of employment.| Period | Notice |
| Up to 4 years | 2 weeks |
| 5 - 10- years | 2.5 weeks |
| 11 - 15 years | 3 weeks |
| 16 - 20 years | 3.5 weeks |
| 20+ years | 4 weeks |
Statutory Time Off
Annual Leave
Full-time employees in Cyprus are entitled to 20 working days, whereas employees who work 6 days are entitled to 24 working days.
Public Holidays
There are 15 public holidays:
- New Year's Day
- Epiphany Day
- Greek Monday
- Greek Independence Day
- Cyprus National Day
- Orthodox Good Friday
- Orthodox Easter Monday
- Orthodox Easter Tuesday
- Labour Day
- Orthodox Pentecost Monday
- Dormition of Mary mother of God
- Cyprus Independence Day
- Greek National Day (Ochi)
- Christmas Day
- Boxing Day
START PAYROLLING YOUR EMPLOYEES IN CYPRUS
Work, Pay and Taxes
Minimum Wage
The minimum wage in Cyprus is currently EUR 885 per month. By law, it must increase to EUR 940 per month after six months of employment.
Working Time and Overtime
The standard working week in Cyprus is 40 hours (8 hours per day).
Overtime is not mandatory in Cyprus.
Salary Payments
Salary payments in Cyprus are usually paid monthly, on the last day of the month.
Bonus
It is not mandatory to offer a bonus in Cyprus. It is down to the employer's discretion.
Income Tax
| Salary | Tax Percentage |
| €0 - €19,500 | 0% |
| €19,501 - €28,000 | 20% |
| €28,001 - €36,300 | 25% |
| €36,301 - €60,000 | 30% |
| €60,001+ | 35% |
WORKER MISCLASSIFICATION IN CYPRUS
Similar to other countries, Cyprus has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.