Hiring employees in Cyprus
Since 1st January 2024, the national minimum wage for the first 6 months of employment is €900. This rises to 1,000 after 6 months of employment.
Personal income tax in Cyprus is calculated on a progressive scale as follows:
- Up to €19,500: 0%
- €19,501–€28,000: 20%
- €28,001–€36,300: 25%
- €36,301–€60,000: 30%
- Over €60,000: 35%
For more information on other tax rates and allowances in Cyprus, please get in touch to discuss your specific requirements.
In Cyprus, employers are not required to provide a private pension scheme, however, the Social Insurance contribution is mandatory for both employees and employers, at a rate of 8.8% of an employee’s gross monthly earnings each.
Employers are required to pay additional funds. For more information on employer contributions, please contact us.
The standard working hours in Cyprus are typically 40 hours per week spread over 5 days, although this can range from 38 to 48 hours depending on the sector or industry.
The average weekly working hours are capped at 48 per week over a 4-month period.
Employee’s leave consists of several types:
- Statutory time off or paid leave, which is 4 weeks, or 20 working days, per year for full-time employees working a five-day week
- Public holidays (there are 13 public holidays per year in Cyprus)
- Maternity, Paternity and Special leave
- Sick leave
In Cyprus, employers must have a valid reason for termination, such as:
- Redundancy
- Employee misconduct
- Poor performance
Termination of an employment contract requires a written notice period which varies depending on the employee’s length of service.
For more information about termination, please contact us.