Cyprus

Employment

Collective agreements between the employer and the employee are most common type of employment agreements. Agreements made between trade unions and employers are usually for two to three years.

Payroll

Salaries are paid either on weekly or monthly basis. For monthly basis, the payday is the last day of the month.

HR & Labor

Working hours: Full time employment is considered 38.5 hours. Employees who will work more than 8 hours for over a month, must have their employment contract written out with their employment conditions clearly stated. Depending on the employer, 13th and 14th salaries can be part of the employment agreement. Unless agreed otherwise with the employer, overtime is paid as regular hourly wages.

Immigration

Non EEA residents must apply for a work permit at the Civil Registry and Migration Department and supported by a local employer.

Benefits

Medium and bigger companies offer medical coverage to their employees. It is usually shared between the employee and employer.

Minimum Wage

The minimum wage is 835 EUR first 6 months, 887 EUR after the 6 months.

Pension Fund

The state contributes 4.3%.

The employer contributes 6.8% of regular wages.

The employee contributes 6.8% of regular wages. The salary ceiling is 1,025 EUR per week.

Severance Payments

If the employee has been working up to 4 years in the company – they are entitled to two weeks’ pay for every 52 weeks of continuous employment. From 5 to 10 years, two and half weeks’ pay of 52 weeks of continuous employment. From 11 to 15 years of working in the company, three weeks’ pay of every 52 weeks of cautious employment. From 16 to 20 years of working in the company, three and half weeks of pay for every 52 weeks of continuous employment. From 21 to 25 years of employments, four weeks of pay for every 52 weeks of continuous work.

Advance Notice

If employee has been working in the company from 26 to 51 weeks – he/she must give 1 week notice. From 52 to 259 weeks- 2 weeks’ notice and from 260 weeks on – 3 weeks notice.

Termination Procedure

Employer must give minimum notice to the employee. The minimum notice time depends how long the employee has been working: from 26 to 5 weeks – 1 week notice. From 52 to 103 weeks- 2 weeks notice. From 104 to 155 weeks – 4 weeks notice. From 156 to 207 weeks – 5 weeks notice. From 208 to 259 weeks – 6 weeks notice.

Sick Days

Employees are entitled to 26 weeks of sick leave.

Public Holidays

There are 15 public holidays.

Vacation Days

Employees are entitled to 22 days minimum paid vacation per year.

Expat Benefits

Expat can receive 50% remuneration from any employment in Cyprus if they have been working in Cyprus for up to 10 years and income exceeds 100,000EUR per year. They can also receive 20% or 8,550EUR remuneration and it lasts for 5 years. They can also receive additional benefits such as relocation allowance, accommodation benefits and education allowance for the children.

VAT

VAT is 19% standard rate.