Overview

Capital
Nicosia
Currency
Euro
Date Format
dmy

calendar icon Public holidays calendar

Taxes

Employer
8.30% - Social Insurance
1.20% - Redundancy
0.50% - Training & Development
2.00% - Social Cohesion
2.90% - National Health System (NHS)
8.0% - Holiday Fund (if not exempt)
Employee
8.30% - Social Insurance
0.00% - Up to 19,500
20.00% - 19,500 - 28,000
25.00% - 28,000 - 36,300
30.00% - Over 36,300

Minimum Wage

General

Currently there is no standard minimum wage. However, there are talks to implement one in the future.

Working Hours

General

Working hours in Cyprus vary according to the sector and profession. The general work week ranges from 38 to 40 hours. The maximum number of hours a week is 48 including overtime.

Overtime

Overtime payment should be set in the terms of employment but must be paid at least 1:1. For overtime that is included in the salary, hours should be fixed.

VAT

General

19% standard rate.

Mandatory Benefits

Pension Fund

The pension system is based on three pillars. The first is the statutory social security system, the second is the provident fund, and the third is a private system.

The contribution rate for the occupational pension scheme is:

Employer – 13.15%

Employee – 4.45%

Consolidated Fund of the Republic – 5.20%

Social Security

The social insurance scheme covers all employees and contributions are compulsory. 

 

Employer Contribution

Social Insurance

8.3%

Redundancy

1.2%

Training Development

0.5%

Social Cohesion

2.0%

National Health System (|NHS)

2.90%

Holiday Fund (if not exempt)

8.0%

Employee Contribution – 8.3% towards social insurance

Health Insurance

The National Healthcare System (NHS) provides social insurance for all residents and is funded by contributions made through payroll.

Contribution rates are:

Employer – 2.90%

Employee – 2.65%

Payroll

General

Employers decide when payments will be made and must be stated in the employer’s obligation statement.

Payroll Frequency

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

Termination

Termination Process

Employers who wish to terminate an employer who has work a period of at least 26 weeks must be given a notice in writing.

Advance Notice

Employer Notice Period

Length of Service (weeks)

Notice Period (weeks)

26 – 51

1

52 – 103

2

104 – 155

4

156 – 207

5

208 – 259

6

260 – 311

7

312 or more

8

The notice period must be given in writing.

The only time a notice is not required is when the employee has committed a serious offense.

Employee Notice Period

Length of Service (weeks)

Notice Period (weeks)

26 – 51

1

52 - 259

2

260 or more

3

Severance Pay

Length of Service (years)

Pay (weeks)

Up to 4

2

5 - 10

2.5

11 - 15

3

16 - 20

3.5

20 or more

4