Hire and pay employees in

Cyprus, hassle-free

Hire and pay employees in Cyprus, hassle-free

With Deel, your business can easily hire employees in Cyprus. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Cyprus is 3 days with Deel.

Currency

EUR

Capital

Nicosia

Official Language

Greek

Payroll Cycle

Monthly

Onboard, pay and manage employees in Cyprus with Deel.

Usually, to hire in Cyprus, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Cyprus quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Cyprus
built right in

Deel allows you to provide localized benefits for employees in Cyprus within minutes. All in one manageable online dashboard.

  • Public Health Insurance
  • Redundancy Fund
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Cyprus

Navigate the tabs below to learn everything you need to know about hiring an employee in Cyprus

Minimum Wage Requirements

The minimum wage is EUR 924 per month. However, during the first six months of employment, it can be EUR 870.

Individual Income Tax

The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to EUR 19,500 0%
Up to EUR 28,000 20%
Up to EUR 36,300 25%
Up to EUR 60,000 30%
Over EUR 60,000 35%

Payroll Cost

The employer cost is generally estimated at 15.40% of the employee salary.
- Social Security - 8.80%*
- Social Cohesion fund - 2%
- Human resources - 0.5%*
- Redundancy fund - 1.2%*
- General Health care system - 2.9%**

*Up maximum salary for the contribution of EUR 5,239
**Up maximum salary for the contribution of EUR EUR 15,000

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Employees working in the retail and sales industries can have a standard 8 hours per day, 48 hours per week from Monday to Saturday.

Maternity Leave

Pregnant employees who have worked for 180 consecutive days for the same employer are entitled to 18 weeks of paid leave. Two weeks must be taken before the child's birth. The employee will receive 72% of their salary during this period, and Social Security will be responsible for this pay.

The employee can extend leave at the employer’s sole discretion and with no payment.

Paternity Leave

Employees who have worked for 180 consecutive days for the same employer are entitled to 14 days of paid paternity leave. Leave must be taken within the first 16 weeks after the birth of the child. The employee will receive 72% of their salary during this period, and Social Security will be responsible for this pay.

The employee can extend leave at the employer’s sole discretion and without payment.

Parental Leave

Employees are entitled to 8 months of parental leave. Both parents can decide how to distribute the time off, which should be taken after paternity and maternity leave. Either parent can take parental leave. This leave will be unpaid.

Parental leave can't be extended.

Sick Leave

Employees are entitled to paid sick leave for up to 156 days. This leave is paid at different rates and by different payers depending upon length:

Period Pay Payer
0 - 3 days 100% of base salary Employer
4 - 156 days 60% of base salary Social Security

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Cyprus can be complex. There is no at-will termination in Cyprus for employers, and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Serious offense by the employee
    • Disciplinary dismissal
  • By the expiration of the contract

If the employee is to be fired, the employer must do so within a specified period after the cause of dismissal has taken place. Otherwise, dismissal can be considered unlawful. The timeframe for notice must be reviewed as a case by case by the legal counsel.

Notice Period

The minimum notice period is seven days and will be increased according to the length of the employment.

  • One week if the length of service is up to 51 weeks
  • Two weeks if the length of service is up to 103 weeks
  • Four weeks if the length of service is up to 155 weeks
  • Five weeks if the length of service is up to 207 weeks
  • Six weeks if the length of service is up to 311 weeks
  • Seven weeks if the length of service is over to 312 weeks

Severance for Employees

In Cyprus, all employees who are unlawfully terminated or terminated due to the employer's behavior are entitled to severance pay. Severance pay depends on the length of the service:

  • Up to 4 years of service - 2 weeks pay
  • Between 5 and 10 years of service - 2.5 weeks pay
  • Between 11 and 15 years of service - 3 weeks pay
  • Between 16 and 20 years of service - 3.5 weeks pay
  • Over 20 years of service - 4 weeks pay.

An employee is not entitled to compensation for termination of employment if he has attained the pensionable age before the date of his employment termination.

Paid Time Off

Full-time employees are entitled to 20 working days of paid time off (PTO) a year. Employees working six days a week, are entitled to 24 working days of paid time PTO per year. PTO accrues monthly at 1.67 days per month and the employee must take leave in the current calendar year accrued.

Public Holidays

Cyprus celebrates 16 national holidays.

National public holidays include:

  • New Year's Day
  • Epiphany Day
  • Greek Monday
  • Greek Independence Day
  • National Day
  • Orthodox Good Friday
  • Orthodox Good Sunday
  • Orthodox Good Monday
  • Labor Day
  • Orthodox Pentecost Monday
  • Assumption Day
  • Cyprus Independence Day
  • Ochi Day
  • Christmas Eve
  • Christmas Day
  • Boxing Day

Onboarding

Onboarding takes 3 business days.

Employment Contract Details

Contracts can be in English, Greek, or both languages. They must be in writing and signed by both parties. A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are not mandatory. The maximum probation period is 180 days (six months) and can be extended up to 2 years.
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Hiring in Cyprus, hassle-free

With Deel, your business can easily hire employees in Cyprus with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Cyprus and 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

15.4%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Cyprus?

View our Employee Cost Calculator

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