Cyprus

Contract Types             

In Cyprus, contracts can either be indefinite, fixed term or temporary. Contracts are often governed by a Collective Bargaining Agreement (CBA)..

Probation         

The standard probation period in Cyprus is up to six months and most companies give a 3 month probation period. It can be extended up to a maximum of 2 years by mutual agreement.

Working Hours 40 hours per week, 8 hours per day.

Overtime          

Employees may work a maximum of 48 hours per week. Overtime pay is not regulated by law in Cyprus apart from in the retail sector and is usually a matter of negotiation between the employer and employees. However, in certain industries working time is regulated by specific legislation and regulations or the CBA.

Other   

A 13th month salary is not mandatory but is often paid in December. Some employers will pay a 14th month salary as well.

Tax rates valid for 2024            

Corporation Tax: 12.5%                          

Consumption Tax: 19%                           

Employers’ Social Security Contributions

 15.4% + 8% Holiday Fund depending on type of activity                          

Employees’ Contributions

11.45%                             

Income Tax Rates        

Up to 19,500 – 0             

19,500 to 28,000 – 20%              

28,000 to 36,300 – 25%              

36,300 to 60,000 – 30%              

Over 60,000 -35%

Notice               

In Cyprus the notice period depends on length of service ranging from 1 week for 26 weeks to 1 years’ service up to a maximum of eight weeks with over 6 years’ service. If an employee decides to resign, they must give notice according to their tenure: one week for under a year, two weeks for up to five years, and three weeks for longer service, unless the contract specifies otherwise.

No notice is required during probation or for dismissal when the employee has committed an offence.

Dismissal Process

Employers should give written notice of termination including an explanation as to the reason. In cases of misconduct a warning should be given and the employee should be given the opportunity to explain their actions.

Severance Pay              

This is payable based on service in cases where the reason for termination may be considered illegal, such as redundancy or performance related reasons. The amounts payable are:

Up to 4 years’ service – 2 weeks’ salary per year

5 to 10 years’ service – 2.5 weeks’ salary per year

10 to 15 years’ service  – 3 weeks’ salary per year

15 to 20 years’ service – 3.5 weeks’ salary per year

Over 21 years’ service – 4 weeks’ salary per year

2024 Date

National Public Holidays: 14

New Year’s Day – 1st January    

No Day given in lieu

Epiphany – 6th January

No Day given in lieu

Clean Monday – 18th March

Day given in lieu – NA

Greek Independence Day – 25th March

Day given in lieu – NA

Cyprus National Holiday – 1st April

No Day given in lieu

Labour Day – 1st May

No Day given in lieu

Orthodox Good Friday – 3rd May

Day given in lieu – NA

Orthodox Easter Monday – 6th May

Day given in lieu – NA

Orthodox Pentecost Monday – 24th June

Day given in lieu – NA

Assumption of the Blessed Virgin Mary – 15th August

No Day given in lieu

Cyprus Independence Day – 1st October

No Day given in lieu

Ochi Day – 28th October              

No Day given in lieu

Christmas Day – 25th December

No Day given in lieu

Second day of Christmastide / St. Stephen’s Day – 26th December

No Day given in lieu

Holidays always falling at weekends are excluded. Days off in lieu are sometimes given when a public holiday falls at the weekend.

Paid legal entitlement (working days)             

Employees are entitled to 20 days’ annual leave in addition to public holidays. Leave is pro rated during the first year of employment and continues to accrue during periods of absence, for example whilst an employee is on sick leave.

With mutual agreement between the employer and employee, annual leave can be carried over for up to two years.

Sick

During the initial three days of illness-related absence, employees do not receive pay.  Following this period, they become eligible for partial salary coverage from the Social Insurance Fund. This sick pay extends for 156 days, with the possibility of an additional 156-day extension if the individual qualifies for an incapacity pension. Certain employers offer sick pay for the initial three days, while others cover the remainder of the salary beyond what the Social Insurance Fund provides.

Maternity

Pregnant employees have the right to take maternity leave ranging from 18 continuous weeks, extending to 22 weeks in the case of twins, and 26 weeks for triplets. It is mandatory to take 11 weeks’ maternity leave, starting 2 weeks before the birth.  Maternity pay is funded by the government at 72% of earnings. This amount rises with additional dependents by 4 weeks for each additional child. Any amount paid by an employer is deducted from the state funded payment. There is no capped limit to this pay and it is not taxed.

Adopting mothers are entitled to 16 weeks’ maternity leave (so long as the child is under 12).

New mothers’ employment rights are protected from notification of pregnancy up to 5 months after maternity leave ends.

Paternity           

Fathers are entitled to a maximum of two weeks of leave, which  can be taken  from the day the child is born until 16 weeks after the birth. This is funded by Social Security .

Parental            

Parents of children under the age of 8 can take a minimum of 1 day and a maximum of 5 weeks per calendar year.

Carer  

Up to 5 days of unpaid leave is available each year to care for a sick relative.

Bereavement Leave   

Employees are entitled to 5 days’ paid leave on the death of a close family member.

Force Majeure

Up to 7 days per year are available as unpaid leave to deal with emergency situations.

Medical

The Cypriot public health system is available to all residents with low co- payments and is complemented by a private health system. Waiting times can be long in the public system, so many companies will offer private medical insurance so employees (and often their families) can enjoy access to a wider range of specialists and hospitals with reduced waiting times.