Country Guides

Cyprus

Quick Find

pin_drop

Capital

Nicosia (also known as Lefkosia)

emoji_language

Language

Greek and Turkish

captive_portal

Remote workers

Cyprus allows for remote work arrangements, but there are specific regulations regarding remote work.

payments

Currency

€ Euro (EUR)

alarm

Working hours

40 hours a week

beach_access

Public holidays

14 days per year

payment_arrow_down

Minimum monthly salary

€979 - €1,088

receipt

Tax year

Jan 1 - Dec 31

early_on

Date format

DD/MM/YYYY

Misclassification penalties

Misclassifying employees can result in retroactive payment of unpaid taxes and employee benefits, penalties and possible court proceedings.

Fun fact

According to mythology, Aphrodite, the goddess of love and beauty was born from the sea foam off the coast of Cyprus—specifically at Petra tou Romiou, also known as Aphrodite’s Rock.

Employer contributions

  • payment_arrow_down

    Employment tax: 12.5% - 20.5%
  • language

    Social Security contributions are generally flat rates applied to the gross salary.

Social security contributions: Social insurance

Contribution amount: 8.8%

Social security contributions: Redundancy fund

Contribution amount: 1.2%

Social security contributions: Industrial training fund

Contribution amount: 0.5%

Social security contributions: Social cohesion fund

Contribution amount: 2%

Social security contributions: Holiday fund (if not exempted)

Contribution amount: 8%

Employee contributions

  • payment_arrow_down

    Employee tax: 0% - 35% + social security contributions
  • language

    Contribution to social security for employees equals 11.45% of salary.

Income tax

Gross income: €0 - €22,000

Tax rate: 0%

Gross income: €22,001 - €32,000

Tax rate: 20%

Gross income: €32,001 - €42,000

Tax rate: 25%

Gross income: €42,001 - €72,000

Tax rate: 30%

Gross income: Above €72,001

Tax rate: 35%

Social security contributions: Social insurance

Contribution amount: 8.8%

Social security contributions: National Health Insurance System (NHIS)

Contribution amount: 2.65%

Looking for a quick cost estimate?

Use our calculator to understand what are all the employment costs you have to consider in Cyprus.

Calculate employment cost in Cyprus arrow_forward_ios

Employer of Record in Cyprus

What is an EOR?

An Employer of Record is the legal employer of a worker in Cyprus. As such, the Employer of Record takes care of all compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

  • check_circle

    Ensuring employment is compliant with local employment laws
  • check_circle

    Processing local payroll
  • check_circle

    Filing employment related taxes and returns
  • check_circle

    Issuing payslips to the employee
  • check_circle

    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory benefits in Cyprus

  • Health insurance

    Employers and employees must contribute to the National Health Insurance System. This provides access to healthcare services for employees and their dependents.

  • Pension contributions

    Both employers and employees are required to contribute to the social insurance system, which includes a pension fund. These contributions secure retirement benefits for employees.

  • Unemployment and occupational accident insurance

    Employers are required to provide insurance that covers unemployment benefits and accidents or injuries that occur during work activities.

Common non-mandatory benefits in Cyprus

  • cardiology

    Private health insurance
  • payments

    Meal allowance or vouchers
  • captive_portal

    Mobile phone and internet allowance
  • payments

    Supplementary pension schemes
  • directions_subway

    Company car or transportation allowance
  • breastfeeding

    Childcare assistance
groups

Right to equal pay

shield_with_heart

Protection against discrimination

shield_with_heart

Protection from overwork

home

Right to safe working conditions

shield_with_heart

Protection against unfair dismissal

shield_with_heart

Protection from harassment

check_circle

Pay transparency

Paid time off

20 days of paid annual leave if they work a five-day week or 24 days for a six-day week + 14 public holidays.

Sick leave

The employer covers the first three days of absence, after which the Social Insurance Fund pays a percentage of the employee's insurable earnings.

Maternity leave

18 weeks, starting up to nine weeks before the expected due date

Parental leave

Employees are entitled to unpaid parental leave for each child under the age of eight.

Special leave for personal matters

Special leave may be granted for personal or family reasons, such as weddings, funerals, or caregiving responsibilities, which is typically unpaid unless otherwise specified.

Probation

Probationary periods can last a maximum of six months, with a notice period of at least seven days during the probationary period.

Intellectual property

Employees must inform their employers about their inventions at work or related to work. If the creation is connected to the employer’s economic activity, the employee must notify the employer of the invention.

Payment frequency

Salaries are paid on a monthly basis.

Payday

Salaries must be paid no later than the 15th of the following month.

Ending an employment contract in Cyprus is regulated by the Termination of Employment Law (Law 24 of 1967), which outlines the rights and obligations of both employers and employees. The law covers dismissals, resignations, notice periods, and compensation.

FAQs

In Cyprus, there are four main hiring options. You can run payroll from your HQ for short-term arrangements, engage contractors for project-based work, set up a local entity for direct employment, or use an Employer of Record. Each path involves different compliance and operational requirements. An EOR is often the quickest way to hire in Cyprus without establishing a local company.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Cyprus, employment is the right structure under Cypriot law, covering entitlements like paid annual leave, sick leave, and Social Insurance contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Cyprus.

HR compliance in Cyprus means your policies and procedures respect all applicable Cypriot employment laws and regulations. When you hire in Cyprus, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (20 days plus 14 public holidays), minimum wage (€979-€1,088/month), tax credits, and a 40-hour working week. Following these is fundamental for running the business well.

An Employer of Record is the legal employer of the individual in Cyprus for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 18 weeks of maternity leave and 20 days of annual leave. You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including Cyprus. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

Both employers and employees in Cyprus pay social security contributions. Employer rates range from 12.5% to 20.5% of gross salary, while employees contribute 11.45%. Employees also pay progressive income tax of 0-35% depending on salary. Use the salary breakdown calculator for exact figures based on the salary you plan to offer.

Can’t find what you’re after?

Or maybe the country you’re looking into isn’t available yet?

Talk to us

Employment cost calculator

Understand the employment costs you have to consider in any country

Learn more

Global employment made gloriously uneventful

Talk to us and discover Boundless possibilities

Book a personalised discovery and get your questions answered by our experts.