Employer of Record in Cyprus

General Information

• Currency: Euro (EUR)
• Employer Taxes: Unknown
• Payroll Frequency: Monthly
• Employee Costs: 11.45%
• Capital: Nicosia
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The National Minimum Wage is set at 940 EUR per month. However, for the initial six months of employment, the minimum wage is reduced to 885 EUR per month.

Payroll

Payroll Cycle: In Cyprus, the payroll cycle is typically monthly, with payments required to be made by the last working day of the month.

13th Salary

Whilst not mandatory, it is customary to pay employees a 13th salary in December.

Working Hours

General: The standard workweek in Cyprus consists of 40 hours across five days (8 hours per day), although a six-day week is possible.

Overtime: Any hours worked beyond the standard 40 hours per week are subject to overtime pay. The rates for overtime compensation should be outlined in the Employment Contract or specified by the applicable Collective Bargaining Agreement. The maximum average workweek is 48 hours, calculated over a 4-month period.

Leave

Annual Leave (Vacation):

Employees working a five-day week are entitled to 20 working days of annual leave, while those working a six-day week receive 24 working days per year. Additional leave days may be specified in the Employment Contract or Collective Bargaining Agreement. Leave entitlement accrues after completing 48 weeks with a single employer.

Unused leave days can be carried over if mutually agreed upon by both the employer and employee, with a cap on the maximum number of leave days that can be accrued over a two-year period (e.g., 40 or 48 days).

During the annual leave period, wages may be paid directly by the employer or through the Central Holiday Fund.

Public Holidays

Public holidays that fall on the weekend are usually lost.

Sick Days

Employees are entitled to paid sick leave starting from the fourth day of illness, with compensation provided by Social Security. A medical certificate must be submitted to the Social Security Administration within 48 hours of the sick leave commencing. Social insurance covers sick pay for up to 312 days at 60% of the salary, with the percentage potentially increasing if the employee has a dependent spouse or children.

Maternity Leave

Female employees are entitled to maternity leave as follows: 18 weeks for the birth of their first child, 22 weeks for the second child, and 26 weeks for each subsequent child. A minimum of 11 weeks of maternity leave is mandatory, typically starting 2 weeks before the expected due date and continuing for the remainder after childbirth.

Maternity allowance is based on the weekly average of actual and simulated insurable earnings during the relevant tax year. The allowance consists of a basic amount and a supplementary amount. The basic allowance is 72% of the employee’s salary, increasing to 80%, 90%, or 100% if the employee has one, two, or three dependents, respectively. If the employee receives part of her earnings from her employer during maternity leave, the maternity benefit is adjusted so that the total income (allowance plus earnings) does not exceed her full emoluments.

Applications for maternity benefit must be submitted within 21 days from the start date of the allowance and should be completed after the 25th week of pregnancy. Employees must also notify their employer of their pregnancy in advance and provide a medical certificate with the expected due date.

Paternity Leave

Fathers are entitled to 2 consecutive weeks of paid paternity leave within 16 weeks following the birth of their child. This leave is paid by the Social Insurance Fund at 75.20% of the employee’s regular salary.

Parental Leave

Employees with children under the age of 8 are entitled to parental leave. The law allows each eligible employee to take up to eighteen weeks of unpaid parental leave per child.

Other Leave

Depending on collective bargaining agreements or the employment contract, employees may be eligible for additional types of leave:

• Bereavement Leave: Up to 5 days of paid leave for the death of a close family member.
• Adoption Leave: Up to 16 consecutive weeks of leave for adopting a child under twelve years old, starting from the date the employee begins caring for the child.
• Military Leave: Employees called to perform military service are covered by social insurance through the Social Insurance Services.

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