Country Payroll Guide Cyprus

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Key Facts

Date format
Euro (EUR)
the standard rate is 19%



Social Insurance
Social Insurance - 8.3%
Social Cohesion
Social Cohesion - 2%
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%


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 Cycle
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 rates are dependent on contract, there are no laws relating to overtime in Cyprus.


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 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.


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.