Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Greek/Turkish and use the Euro currency (EUR).
Working Hours
The standard workweek in Cyprus consists of 40 hours across five days (8 hours per day), although a six-day week is possible.
Overtime
All hours worked in excess of 40 hours per week are paid at an overtime compensation rate. Overtime pay rates should be stipulated in the Employment Contract or applied in accordance with any applicable Collective Bargaining Agreement. 48 hours per week is the maximum number of hours permitted to work during a week, averaged over a 4-month period.
Public Holidays
Public holidays that fall on the weekend are usually lost.
For the year 2024:
- Jan 1: New Year’s Day (Monday)
- Jan 6: Epiphany (Saturday)
- Mar 18: Green Monday (Monday)
- Mar 25: Greek Independence Day (Monday)
- Apr 1: National Day (Monday)
- May 1: Labour Day (Wednesday)
- May 3: Good Friday (Friday)
- May 6: Easter (Monday)
- May 7: Easter (Tuesday)
- Jun 24: Whit Monday (Pentecost) (Monday)
- Aug 15: Assumption Day (Thursday)
- Aug 1: Cyprus Independence Day (Tuesday)
- Oct 28: Ochi Day (Monday)
- Dec 25: Christmas Day (Wednesday)
- Dec 26: Boxing Day (Thursday)
Annual Leave (vacation)
The standard leave entitlement for employees who work a five-day week is 20 working days per year and for employees who work a six-day week is 24 working days per year. Additional annual leave days might be mandated within the Employment Contract or applicable Collective Bargaining Agreement. Entitlement for annual leave is once 48 weeks have been worked with a single employer.
It is permitted to carryover unused leave days provided there is mutual agreement to do so from both the employer and employee, capped at the maximum number of days of leave that an employee can accrue over a 2 year period (i.e. 40 or 48 days).
An employee’s wages during the annual leave period is paid either by the employer directly or by the Central Holiday Fund.
Sick Days
Employees are entitled to paid sick leave from the fourth day of sickness, paid for by Social Security. The employee must submit a medical certificate to the Social Security Administration within 48 hours of the start of the sick leave. The social insurance covers sick pay up to a period of 312 days at 60% of salary (the % of salary might increase where there is a dependent spouse and children).
Maternity and Paternity
Maternity Leave
Female employees are entitled to 18 weeks of maternity leave for the birth of their first child, 22 weeks maternity leave for the birth of their second child and 26 weeks maternity leave for the birth of all subsequent children. It is compulsory to take 11 weeks of maternity leave and are generally taken 2 weeks before the due date and the remainder after.
The amount of the maternity allowance is determined based on the weekly average of actual and simulated insurable earnings of the insured within relevant tax year. The maternity allowance includes a basic allowance and a supplementary allowance. The weekly amount of the basic allowance is equal to 72% of her salary, rising to 80%, 90% or 100%, when the beneficiary has one, two or three dependents, respectively. If the beneficiary receives part of her earnings from her employer for the period she is entitled to maternity benefit, the benefit is reduced so that the sum of the allowance and emoluments she receives not to exceed her full emoluments.
The application for maternity benefit must be submitted within 21 days of the day from which the allowance is required. Submitting the application for maternity allowance takes place immediately after completing the twenty-fifth (25th) week of pregnancy. Workers must also inform their employers of pregnancy in advance and provide a medical certificate which indicates the expected due date.
Paternity Leave
Fathers are entitled to 2 consecutive weeks of paid paternity leave within the 16 weeks following the birth of a child, paid by the Social Insurance Fund at 75.20% of the employees’ regular salary.
Paternal Leave
The right to parental leave covers all employees who have children under the age of 8. According to the law, every eligible employee can take up unpaid parental leave of up to eighteen weeks for each child.
Other Leave
Depending on collective bargaining agreements or the employment contract, an employee may be allowed additional leave types.
- Bereavement: Employees are entitled to up to 5 days of paid leave due to a death of a direct family member.
- Adoption: Employees who want to adopt a child under the age of twelve years are entitled to up to 16 continuous weeks’ leave starting from the date they begin to take care of the adopted child.
- Military: Employees called to perform military service are covered by assimilated insurance (Social Insurance Services).
Employee Severance and Terminations
Termination Process
Employers can terminate employment according to lawful justified reasons including unsatisfactory performance, redundancy, force majeure, termination at the end of a fixed period, commission of a serious disciplinary or criminal offence, indecent behavior, or repeated violation of employment rules.
Employers can terminate a fixed-term contract for reasons related to business needs, personal reasons or worker misconduct.
Notice and a written explanation for the termination are required. If the reason is misconduct, a warning needs to be given and the employee gets a chance to explain their actions.
Severance is paid and all statutory obligations such as paid time off are compensated.
Notice Period
The notice period for a temporary or permanent employee is dependent on the employee’s length of employment:
- 26-51 weeks of employment: 1 weeks’ notice
- 52-103 weeks of employment: 2 weeks’ notice
- 104-155 weeks of employment: 4 weeks’ notice
- 156-207 weeks of employment: 5 weeks’ notice
- 208- 259 weeks of employment: 6 weeks’ notice
- 260- 311 weeks of employment: 7 weeks’ notice
- 312 weeks or more: 8 weeks’ notice
No notice is required during the probation period or when the employee has committed a serious offense.
Severance Pay
The severance pay varies based on length of employment:
- 2 weeks’ severance for each year of employment up to 4 years
- 2.5 weeks of wages for each year between 5-10 years of employment
- 3 weeks of wages for each year between 11-15 years of employment
- 3.5 weeks of wages for each year between 16-20 years of employment
- 4 weeks of wages for each year over 20 years of employment
Probation Period
The probationary period in Cyprus is dependent on the type of role and is stipulated within the employment agreement. In general, probation periods are between six months and two years.
Payroll Cycle
The payroll cycle in Cyprus is generally monthly, and payments are to be made no later than the last working day of the month.
The National Minimum Wage is set at 940 EUR per month, however, for the first six months of employment it is set at 885 EUR per month.
13th Salary
While not mandatory, it is customary to pay employees a 13th salary in December.
Contributions
Employer Payroll Contributions
VISA
The Cyprus immigration system provides several options for employers of foreign nationals. Cyprus is a member of the European Union. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by permit type.
Business visitors obtain a business visa to travel to Cyprus if they are not visa-exempt based on their nationality. Business visits are limited to 90 days in 180 days and require a detailed support or invitation letter outlining the nature and duration of activities.
The main work authorization categories are the EU Intracompany Transferee (ICT) Permit, suitable for the intracompany transfer of managers, specialists, and trainees from outside the EU; and the Employment Permit for Local hires, suitable for locally hired employees and intracompany transfers who do not qualify for an EU ICT Permit.
VAT
The standard rate of VAT in Cyprus is 19%.