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Cyprus
Your guide to the employment landscape, working customs and local labor laws in Cyprus
(The data below is for reference only. You may refer to the official government websites or contact us for updates.)
Book a DemoTalent Landscape Analysis
Cyprus’ rich cultural heritage is largely attributed to its geographical location, making them the bridge between the eastern and the western countries. It is a popular tourism destination in the Mediterranean area and has been a major contributor to the country’s economy. The services sector alone makes up 74.1% of their GDP and has provided 72.9% of their working population with employment.
Major economic Cities
Nicosia, Limassol, Larnaca
Skills in demand
Accountants, Dentist, Engineers, Nurses, IT developers

Salary Data
Some of the common jobs with average monthly salaries in Cyprus are mentioned below:
Employing in Cyprus
Expanding your business in this Mediterranean country would involve legally complying with the regulations for employing locals. This section will give the basic know-how for onboarding Cypriot employees.
Public and Provincial Holidays
Leave Information
There is no language requirement for employment contracts in Cyprus. It can be written in any language that the employer and employee understand.
The Probation period for newly hired employees in Cyprus ranges from 26 to 108 weeks.
A 13th-month pay is not mandatory in Cyprus.
Cyprus has a comprehensive social security system that covers the following areas for participating employees:
Payroll in Cyprus may be paid weekly or monthly.
The national minimum wage in Cyprus is EUR 940.
The standard working hours in Cyprus is 48 hours per week. Overtime pay is usually agreed upon between the employer and the employee and is not regulated by the law in Cyprus.
| Type of Contribution | Rate |
| Social Security | 8.3% |
| Redundancy Fund | 1.2% |
| Industrial Training and Development | 0.5% |
| Social Cohesion Fund | 2% |
| General Healthcare System (GHS) | 2.90% |
|
Central Holiday Fund (if company is not exempted) |
8% |
| Type of Contribution | Rate |
| Social Security | 8.3% |
| General Healthcare System (GHS) | 2.65% |
| Taxable Salary Range (in EUR) | Tax Rate | Accumulated Tax (in EUR) |
| 0 – 19,500 | 0% | 0 |
| 19,501 – 28,000 | 20 | 1,700 |
| 28,001 – 36,300 | 25 | 3,775 |
| 36,301 – 60,000 | 30 | 10,885 |
| 60,001 and above | 35 | - |
The standard VAT rate in Cyprus is 19%.
The termination process in Cyprus is regulated by the Termination of Employment legislation of 1967. Dismissal of an employee may happen due to redundancy, resignation or misconduct.
In the case of termination due to misconduct, an employer will have a right to immediately dismiss the employee without any notice or compensation. Below are the following offences that the employee must have committed:
The notice period will vary depending on whether an employee is under probation or not. For those under probation, notice period ranges from 1 to 3 weeks. For those outside probation, notice period will be 1 to 8 weeks.
Employees terminated due to redundancy are eligible to receive compensation if they have served 104 weeks of continuous service with the company. The funds for this payment is taken from the redundancy fund that the employer contributes to each payroll period. Below is the statutory compensation:
| Years of continued service | Notice period |
| Up to 4 years | 2 weeks’ wages for each year of continued employment |
| 5 to 10 years | 2.5 weeks’ wages for each year of continued employment |
| 11 to 15 years | 3 weeks’ wages for each year of continued employment |
| 16 to 20 years | 3.5 weeks’ wages for each year of continued employment |
| 21 to 25 years | 4 weeks’ wages for each year of continued employment |
For foreigners intending to work in Cyprus, they must accomplish and apply for the following documents:
Employee Contract 
There is no language requirement for employment contracts in Cyprus. It can be written in any language that the employer and employee understand.
The Probation period for newly hired employees in Cyprus ranges from 26 to 108 weeks.
A 13th-month pay is not mandatory in Cyprus.
Cyprus has a comprehensive social security system that covers the following areas for participating employees:
Leave Policy 
Public and Provincial Holidays
Leave Information
Payroll 
Payroll in Cyprus may be paid weekly or monthly.
The national minimum wage in Cyprus is EUR 940.
The standard working hours in Cyprus is 48 hours per week. Overtime pay is usually agreed upon between the employer and the employee and is not regulated by the law in Cyprus.
Taxes 
| Type of Contribution | Rate |
| Social Security | 8.3% |
| Redundancy Fund | 1.2% |
| Industrial Training and Development | 0.5% |
| Social Cohesion Fund | 2% |
| General Healthcare System (GHS) | 2.90% |
|
Central Holiday Fund (if company is not exempted) |
8% |
| Type of Contribution | Rate |
| Social Security | 8.3% |
| General Healthcare System (GHS) | 2.65% |
| Taxable Salary Range (in EUR) | Tax Rate | Accumulated Tax (in EUR) |
| 0 – 19,500 | 0% | 0 |
| 19,501 – 28,000 | 20 | 1,700 |
| 28,001 – 36,300 | 25 | 3,775 |
| 36,301 – 60,000 | 30 | 10,885 |
| 60,001 and above | 35 | - |
The standard VAT rate in Cyprus is 19%.
Offboarding & Termination 
The termination process in Cyprus is regulated by the Termination of Employment legislation of 1967. Dismissal of an employee may happen due to redundancy, resignation or misconduct.
In the case of termination due to misconduct, an employer will have a right to immediately dismiss the employee without any notice or compensation. Below are the following offences that the employee must have committed:
The notice period will vary depending on whether an employee is under probation or not. For those under probation, notice period ranges from 1 to 3 weeks. For those outside probation, notice period will be 1 to 8 weeks.
Employees terminated due to redundancy are eligible to receive compensation if they have served 104 weeks of continuous service with the company. The funds for this payment is taken from the redundancy fund that the employer contributes to each payroll period. Below is the statutory compensation:
| Years of continued service | Notice period |
| Up to 4 years | 2 weeks’ wages for each year of continued employment |
| 5 to 10 years | 2.5 weeks’ wages for each year of continued employment |
| 11 to 15 years | 3 weeks’ wages for each year of continued employment |
| 16 to 20 years | 3.5 weeks’ wages for each year of continued employment |
| 21 to 25 years | 4 weeks’ wages for each year of continued employment |
Visa and Immigration 
For foreigners intending to work in Cyprus, they must accomplish and apply for the following documents:
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