Payroll and Benefits Guide - Cyprus

Cyprus
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Currency

Euro
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Capital

Nicosla
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Employer Taxes

22.90%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Cyprus was once home to ten kingdoms namely Amathus, Idalion, Kition, Kurion, Lapithos, Marion, Paphos, Salamis, Soli, and Tamassos.

Cyprus is filled in archaeological sites with remains of buildings and artifacts since the Neolithic era.

Cyprus’ capital, Nicosia, is divided between Cyprus and another nation, Northern Cyprus.

The island is the birthplace of the goddess Athena, according to myth.

The only country where its map can be found on the flag.

The oldest wine type, “Commandaria” came from Cyprus.

Cyprus

Contributions

Employee Payroll Tax

Social Insurance8.30%
National Health System (ESY)2.65%

Employer Payroll Tax

Social Insurance8.30%
Holiday Fund8.00%
National Health System (ESY)2.90%
Social Cohesion Fund2.00%
Severance Fund1.20%
Training and Development0.50%

Payroll

Payroll Cycle

Payroll in Cyprus typically runs on a monthly cycle.

13th Salary

Although it is not required, paying employees a 13th salary in December is common in Cyprus.

Work Hours and Week

A six-day workday is feasible in Cyprus, but the typical workweek only lasts up to 44 hours over five days. To extend an employee’s working hours, employers must receive written consent from the employee.

Overtime

Any additional hours after the 48-hour cap is considered and paid as overtime with a pay rate depending on what is in the employee’s contract.
Cyprus

Leave

Paid Time Off

Employees with a five-day work weeks are given 20 days of paid leave while those with six-day weeks are 24 days given they have 48 weeks of employment.

Public Holidays

There are 15 public holidays in Cyprus.

Sick Days

With the requirement of a medical certificate within 48 hours, all employees are given paid sick leave at a base rate of 60.00% starting on the fourth day until day 312.

Maternity Leave

Pregnant employees are given at least 11 weeks of maternity leave starting at two weeks before the due date. It could be extended if twins or triplets are born.

Paternity Leave

Within the first sixteen weeks since a child’s birth, two weeks of paternity leave are given to fathers.

Parental Leave

Any employee with children under 8 years old are awarded 18 weeks of unpaid leave per child.

Other Leave(s)

Employees are given three days of paid time off in the event of a death of an immediate family member.

Adoptive parents of children under twelve are given up to 16 consecutive weeks of paid leave.

Being drafted into the military are also paid leave.

Termination

Termination Process

A written notice is needed for termination. In the case of misconduct, an employee should be able to defend their actions. All regulatory requirements, such as paid time off, are fulfilled, and severance is paid.

Notice Period

Depending on the length of service, the notice period could be a week to eight weeks.

Severance Pay

The lowest amount is 2 weeks worth of pay at minimum of a year of work and could indefinitely accumulate depending on the years of service rendered.

Probation Period

Probation Period

It is based on the contractual agreement between the employer and employee, but it usually ranges from 6 months and 2 years.

Immigration

To work in Cyprus, a foreigner must apply for either a EU Intracompany Transferee (ICT) Permit or the Employment Permit for Local Hires.

VAT

The commonly used standard rate of VAT in Cyprus 19.00%