UKG Inc., a leading provider of HR, payroll, and workforce management solutions announces entering into a definitive agreement to acquire Immedis. Read More
Country Payroll Guide Cyprus
We deliver secure, compliant, accurate and touchless global payroll for Cyprus.

Key Facts
- Capital
- Nicosia
- Date format
- dd/mm/yyyy
- Currency
- Euro (EUR)
- VAT
- the standard rate is 19%
Contributions
Employers
- Social Insurance
- Social Insurance - 8.3%
- Social Cohesion
- Social Cohesion - 2%
- Redundancy
- Redundancy - 1.2%
- Training and Development
- Training and Development - 0.5%
- National Health System
- National Health System - 2.9%
- Holiday Fund
- Holiday Fund - 8%
- Total Employment Cost
- Total Employment Cost - 22.9%
Employees
- Social Insurance
- Social Insurance - 8.3%
- National Health System
- National Health System - 2.65%
- Total Employee Cost
- Total Employee Cost - 10.95%
Minimum Wage
- Minimum Wage
Cyprus does not have a general requirement for minimum wage.
A minimum wage rate of €870 per month is required for some professions such as shop assistants, nurses’ assistants, clerks, hairdressers, and nursery assistants. This minimum wage will then rise to €924 after six months employment.
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
Not mandatory but it is customary to do so.
Income Tax
- Employee Income Tax (1)
- 19,500-28,000 EUR - 20%
- Employee Income Tax (2)
- 28,001-36,300 EUR - 25%
- Employee Income Tax (3)
- 36,301-60,000 EUR - 30%
- Employee Income Tax (4)
- Over 60,000 EUR - 35%
Working Hours
- General Working Hours
44 hours per week.
- Overtime
Overtime rates are dependent on contract, there are no laws relating to overtime in Cyprus.
Leave
- Paid Time Off
Minimum annual leave is regulated to 20 days for a 5-day working week and to 24 for a 6-day working week.
Leave for seasonal employees should be calculated as a proportion according to duration of their service.
- Public Holidays
14 public holidays.
- Sick Days
There are no set rules regarding sick leave and payment during sick leave, conditions should be stipulated in the contract. Social insurance legislation provides for sick pay from the 4th day of leave.
- Maternity Leave
Pregnant employees are entitled to 18 weeks of maternity leave and is extended to 22 weeks when there are twins, and 26 weeks when there are at least 3 births. During this time the employee receives 72% of their salary and it is paid by the government.
- Paternity Leave
Fathers are entitled to a total of 16 weeks of paternity leave. Two consecutive weeks can be taken within 16 weeks of the birth of a child.
- Parental Leave
Parents are entitled to parental leave of up to 18 weeks for childcare purposes. This is unpaid and applies until a child reaches 8 years of age.
Termination
- Termination Process
It is required to outline the termination process in the initial contract.
- Notice Period
The notice period depends on the length of service. It must be given in writing.
- 26-51 weeks of employment- 1 weeks notice
- 52-103 weeks of employment- 2 weeks notice
- 104-155 weeks of employment- 4 weeks notice
- 156-207 weeks of employment- 5 weeks notice
- 208- 259 weeks of employment- 6 weeks notice
- 260- 311 weeks of employment- 7 weeks notice
- 312 weeks or more- 8 weeks notice
A notice is not required is when the employee has committed a serious offence.
- Severance Pay
Redundancy payments are calculated according to years of employment as follows:
- Two weeks’ wages for each year of service up to four years.
- Two and a half weeks’ wages for each year of service from five to ten years.
- Three weeks’ wages for each year of service from 11 to 15 years.
- Three and a half weeks’ wages for each year of service from 16 to 20 years.
- Four weeks’ wages for each year of service beyond 20 years.
The upper limit for redundancy compensation is 75 and a half weekly wages.
- Probation Period
There is a minimum probation period of six months during which an employer may dismiss an employee without cause. This period may be extended for up to two years, provided that there is a written agreement between the employer and the employee made when employment begins.
Visa
- Employment Visa
All foreign nationals who want to take up paid employment in Cyprus are subject to a Cyprus work permit, except citizens of other European Union member states, Iceland, Liechtenstein, Norway, and Switzerland (EFTA). These citizens must register with the Civil Registry and Migration Department if they intend to work in Cyprus for over 90 days.
Candidates for visa must have an employment contract with a company in Cyprus. The employer files an application on behalf of the candidate with the Cyprus Department of Labour. If approved, the candidate can apply for an entry visa to Cyprus from abroad.
There are 3 categories for work permits:
- Executive Director earning at least €41,000. Five foreign Executive Directors total are permitted.
- Middle Manager earning at least €21,000.
- Support Staff – Can only be hired if there are no EU citizens available for the job.
The residence visa, when approved, can be awarded for up to 4 years and can be renewed.