Benefits in Cyprus

Back to guides

Mandatory Benefits in Cyprus

In Cyprus, employees are entitled to a range of mandatory benefits, including healthcare coverage through the National Health Insurance System (NHIS), social insurance contributions (covering pensions, unemployment, and disability), and paid leave (annual, sick, and parental). 

Family benefits are provided to employees with children, and additional social welfare programs can support specific needs. Employers in Cyprus are also responsible for contributing to these social insurance schemes, providing financial and social security for their workforce.

National Health Insurance (NHIS)

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

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 insurance

The social insurance system in Cyprus covers unemployment benefits, funded through mandatory contributions by both employers and employees.

Occupational accident insurance

Employers are required to provide insurance that covers accidents or injuries that occur during work activities, offering financial protection for employees.

Family allowances

Employees with dependent children may receive family allowances, which are funded by the government and support the cost of raising children.

Annual paid leave & holiday pay

Employees are entitled to a minimum of 20 days of annual paid leave (for those working a five-day week) or 24 days (for those working a six-day week), as per labour laws. Additionally, employers must provide holiday pay based on the employee’s earnings, ensuring that employees receive their regular salary while on annual leave.

Paid sick leave

Employees are entitled to paid sick leave, with compensation provided by the Social Insurance Fund after the first three days of sickness. Employers are responsible for paying these initial three days.

Maternity & parental leave

Female employees are entitled to 18 weeks of paid maternity leave, paid by the Social Insurance Fund. Employers are not required to cover this leave but must facilitate it. Employees are also entitled to unpaid parental leave for each child under the age of eight. Both mothers and fathers can take parental leave, although it is unpaid.

Unemployment benefits

In Cyprus, employees who lose their jobs—whether through redundancy or lawful dismissal—are entitled to unemployment benefits, provided they meet certain contribution requirements under the Social Insurance Fund. The amount and duration of these benefits depend on how long and how much the individual has contributed, with coverage generally available for up to 156 days. Governed by the Social Insurance Law, this financial support gives individuals time to find new employment without facing immediate economic hardship.

Non-Mandatory Benefits in Cyprus

Private health insurance

Although the National Health Insurance System (NHIS) is mandatory, many employers offer supplementary private health insurance to cover additional medical services such as private hospital stays, specialised treatments, and dental or vision care.

Supplementary pension schemes

Some employers provide additional pension plans beyond the mandatory social insurance contributions. These supplementary schemes can enhance retirement benefits for employees, often with the employer matching contributions up to a certain percentage.

Meal allowance or vouchers

Many employers provide meal allowances or vouchers that can be used at restaurants or supermarkets. These allowances are typically provided in the form of vouchers or prepaid cards.

Company car or transportation allowance

Some employers offer company cars or transportation allowances, especially for employees in sales or managerial positions. This can also include fuel cards or covering public transportation costs for commuting.

Training and professional development

Employers often invest in their employees’ skills through training programs, workshops, or subsidies for professional certifications. This may include language courses, technical skills, or leadership development programs.

Gym membership or wellness programs

To promote employee health and well-being, some employers provide gym memberships or wellness programs, including access to fitness classes, mental health support, or wellness days.

Mobile phone and internet allowance

Employers may provide company mobile phones, covering communication expenses, or offer allowances to cover internet bills for remote workers or employees who frequently travel.

Additional paid leave

While the law mandates a minimum amount of paid leave, some companies offer additional days, such as for personal development, birthdays, or volunteering. Some employers also provide extra paid holidays during national or religious festivals.

Child care assistance

Some employers offer childcare benefits, such as subsidies for daycare or on-site childcare facilities, helping employees with young children balance work and family responsibilities.

Need help employing your international workers?

Master the complexities of global employment and ensure a seamless employment experience for your team.

Talk to us

Start employing your international workers today →

Schedule a 30-minute consultation to learn how we can help you employ compliantly.