Cyprus Employment Guide
Cyprus Employment Guide
Cyprus is an island nation in the Eastern Mediterranean with a population of about 1.2 million. Its economy relies on services, tourism, shipping, and financial sectors. Employment in Cyprus is regulated under the Termination of Employment Law and the Employment Law, which cover working hours, leave entitlements, minimum wage, and termination rules. Employers must make social insurance contributions for employees covering pensions, health, and unemployment benefits. Employment contracts are required for all employees, and foreign nationals may need work permits depending on their nationality.
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Currency
Euro (EUR)
Capital
Nicosia
Official language
Greek and Turkish
Salary Cycle
Monthly
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Minimum Wage Requirements
The statutory minimum wage is set at €1,000 per month. However, during the initial six months of employment, employers may apply a reduced rate of €900 monthly.
Personal Income Tax Structure
Personal income tax follows a progressive scale ranging from 0% to 35%. The final tax liability is influenced by multiple factors including marital status and number of dependents, making personalized calculations essential for accurate withholding.
| Annual Income Bracket | Tax Rate |
|---|---|
| Up to €19,500 | 0% |
| €19,501 - €28,000 | 20% |
| €28,001 - €36,300 | 25% |
| €36,301 - €60,000 | 30% |
| Over €60,000 | 35% |
Employer Cost Considerations
Beyond gross salary, employers should anticipate additional costs averaging 15.40% of employee compensation. These mandatory contributions include:
- Social Security: 8.80% (capped at €5,239 monthly wage)
- Social Solidarity Fund: 2%
- Human Resources Development: 0.5% (capped at €5,239)
- Redundancy Fund: 1.2% (capped at €5,239)
- National Healthcare System: 2.9% (capped at €15,000)
For precise calculations tailored to your organization's specific circumstances, SailGlobal's compliance experts provide detailed cost breakdowns.
Working Hours and Overtime Regulations
The standard workweek comprises 40 hours over five days (Monday-Friday), with eight-hour daily shifts. Notably, retail and sales sectors operate under extended provisions allowing 48-hour weekly schedules across six working days.
International companies like SailGlobal often implement time-tracking systems to ensure adherence to these regulations while accommodating flexible work arrangements common in modern global enterprises.
Disclaimer
The information and opinions provided are for reference only and do not constitute legal, tax, or other professional advice. Sailglobal strives to ensure the accuracy and timeliness of the content; however, due to potential changes in industry standards and legal regulations, Sailglobal cannot guarantee that the information is always fully up-to-date or accurate. Please carefully evaluate before making any decisions. Sailglobal shall not be held liable for any direct or indirect losses arising from the use of this content.Hire easily in Cyprus
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