Guide to employment, payroll and benefits in

Cyprus

Rivermate offers complete payroll, benefits and compliance services for

Cyprus

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Nicosia
Ease of doing business
73.4
Language
Greek
Population
1207359
GDP growth
4.23%

02. Grow your team in

Cyprus

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Cyprus

, particularly if you don't have established local relationships. You can hire employees in

Cyprus

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Cyprus is an island country in the eastern Mediterranean Sea, officially known as the Republic of Cyprus. It is located south of Turkey, west of Syria, northwest of Lebanon, Israel, and Palestine, north of Egypt, and southeast of Greece, and is the third largest and third most populated island in the Mediterranean. Nicosia is the capital and largest city of Cyprus. The first human activity on the island is thought to have occurred during the 10th millennium BC. The well-preserved Neolithic settlement of Khirokitia is one of the oldest water wells in the world, and Cyprus is home to some of the world's oldest water wells. In the second millennium BC, Mycenaean Greeks settled Cyprus in two waves. As a strategic position in the Eastern Mediterranean, it was subsequently controlled by a number of major forces, including the Assyrian, Egyptian, and Persian empires, from whom Alexander the Great captured the island in 333 BC. Ptolemaic Egypt, the Classical and Eastern Roman Empires, Arab caliphates for a brief time, the French Lusignan dynasty, and the Venetians were all followed by over three centuries of Ottoman rule between 1571 and 1878. Cyprus was put under the UK's administration in 1878, and was officially annexed by the UK in 1914, based on the Cyprus Convention. The island's future became a source of contention between the island's two most populous ethnic groups, Greek Cypriots (77% of the population in 1960) and Turkish Cypriots (18% of the population). The Greek Cypriot community sought enosis, or union with Greece, from the 19th century onwards, which became a Greek national policy in the 1950s. The Turkish Cypriot population initially supported British rule, then requested the island's annexation to Turkey, and, in the 1950s, jointly with Turkey, developed a taksim regime, partitioning Cyprus and establishing a Turkish polity in the north. Cyprus gained independence in 1960 after nationalist turmoil in the 1950s. The crisis of 1963–64 exacerbated intercommunal conflict between the two groups, resulting in the displacement of over 25,000 Turkish Cypriots into enclaves and the elimination of Turkish Cypriot representation in the republic. In an attempt at enosis, Greek Cypriot nationalists and elements of the Greek military junta staged a coup on July 15, 1974. This intervention sparked the Turkish invasion of Cyprus on July 20, which resulted in the conquest of the present-day territory of Northern Cyprus and the displacement of over 150,000 Greek and Turkish Cypriots. In 1983, Turkey unilaterally declared a separate Turkish Cypriot state in the north; the decision was widely criticized by the international community, with Turkey being the only country to recognize the new state. These incidents, as well as the subsequent political situation, are still a source of contention.

04. Public holidays

05. Types of leave

Paid time off

Employees who serve a 5-day work week are entitled to 20 days of paid vacation, and those who work a 6-day work week are entitled to 24 days.

Public holidays

Cyprus recognizes 14 public holidays.

Sick days

Except in particular cases where there are applicable legislation in force or where it is given in the work contract, sick leave and its reimbursement are not subject to laws. Sick compensation begins on the fourth day of leave under social security law.

Maternity leave

Female workers are entitled to 18 weeks of maternity leave, which is extended to 22 weeks for twins and 26 weeks for at least three births. During this time, the employee is paying 72 percent of his or her wage by the state.

Paternity leave

Fathers are entitled to a total of 16 weeks of paternity leave, of which two weeks must be taken within 16 weeks of the child's birth.

Parental leave

Parents are entitled to up to 18 weeks of annual maternity leave for childcare before their child hits the age of eight.

Other leave

06. Employment termination

Termination process

The employment agreement should specify the procedure for terminating employment.

Notice period

The length of employment determines the notice period. Between 26 and 51 weeks of work, there will be a one-week notice period. Between 52 and 103 weeks of work, there will be a two-week notice period. For jobs lasting between 104 and 155 weeks, there will be a four-week notice period. For positions lasting 156-207 weeks, there will be a 5-week notice period. For jobs lasting between 208 and 259 weeks, there will be a six-week notice period. For jobs lasting between 260 and 311 weeks, there will be a 7-week notice period. Employees who have worked more than 312 weeks will be given an 8-week notice period. Only if the employee has committed a serious offense is there an exception. The notice time must be communicated in writing.

Severance pay

Severance pay is calculated based on the duration of employment. If an employee has worked for the company for up to four years, he or she is entitled to two weeks' compensation for each year worked. Each year, individuals with a five- to ten-year service history receive 2.5 weeks' salary. Employees with 11 to 15 years of service receive three weeks' compensation for each year. Employees with 16 to 20 years of service receive 3.5 weeks' pay for each year. Finally, employees who have worked for the organization for more than 20 years are entitled to four weeks of pay per year.

Probation period

The common practice is 6 months to 2 years and must be outlined in the employment agreement.

07. Working hours

General

The standard workweek is forty hours spread over five days, but a six-day workweek is possible. Throughout the summer, many businesses open at 8 a.m. or 8:30 a.m. and remain open until 6 p.m. or 7 p.m., with a noon break in the middle of the day. Employees may not work more than 48 hours per week without the employee's consent, and work beyond 40 hours requires the employee's consent.


Over a one-month period, work at night (from 11 p.m. to 6 a.m.) may not exceed an average of eight hours out of 24. Employers who employ night workers on a regular basis must notify the Ministry of Welfare, Labor, and Social Insurance in writing and must provide night workers with medical examinations at the employer's expense prior to beginning night work to ensure their health. Additionally, the employer must ensure that night workers are examined on a regular basis while they continue to work at night.


Numerous workers in Cyprus are covered by collective bargaining agreements (probably half or more, although no official figure is available), and these agreements may specify specific working hours.

Overtime

Overtime and other non-standard work arrangements are typically governed by a collective bargaining agreement, or if no collective bargaining agreement exists, the rate is typically negotiated between the employer and employee. Statutes apply in certain industries.

08. Minimum wage

General

Cyprus's compensation legislation is devoid of a national minimum wage. However, some sectors establish their own minimum wage rates, or employers must bargain directly with employees. Currently, the minimum wage is set at 870 euros per month for certain types of assistants and hairdressers, 425 euros per month for unskilled agricultural workers, and 767 euros per month for skilled agricultural workers.

09. Employee benefits

General

Cyprus provides universal health care, and individuals who are not insured by the government system may utilize public medical facilities for a fee.

Medical benefits are income-based. Benefits that are frequently given include a provident (pension) fund, health insurance, parking, a vehicle allowance, a gym allowance, a food allowance, and a phone allowance.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Cyprus

to hire a team takes time, money, and effort. The labor law in

Cyprus

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Cyprus

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Cyprus

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Cyprus

via our Employer of Record / PEO solution.

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