Payroll

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.

13th Salary

While not mandatory, it is customary to pay employees a 13th salary in December.

Working Hours

General

The standard workweek in Cyprus consists of a maximum of 44 hours across five days, although a six-day week is possible. Employers must be granted written permission from employees in order to increase the employee’s working hours.

Overtime

All work more than the standard working hours a week is to be paid as overtime and is regulated by the employment contract or collective bargaining agreements. The maximum number of hours during a workweek is 48 and is averaged over a 4-month period.

All hours in excess of 40 hours a week are paid at an overtime compensation rate; this rate is stipulated in the employment contract or collective bargaining agreements.

Working Week

Monday-Friday

Leave

Paid Time Off

In Cyprus, paid annual leave entitlement is dependent on the number of years of employment.

The standard leave entitlement for employees who work a five-day week is 20 days per year or 24 days per year for employees who work a six-day week. Further entitlement for leave is outlined in the employment contract or collective agreement.

Employees become eligible after 48 weeks of employment with a single employer, and the employer reserves the right to accept or deny any leave requests due to the demands of the business.

Public Holidays

There are 14 public holidays.

Sick Days

Employees are entitled to paid sick leave from the fourth day of sickness and is paid 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.

Maternity Leave

Female employees are entitled to 18 weeks of maternity leave. The leave increased to 22 weeks for twins and 26 weeks for triplets. 11 weeks of maternity leave are compulsory and are generally taken as two weeks before the due date and the remainder after. To be entitled to maternity leave, the pregnant employee must provide a medical certificate certifying her pregnancy and 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.

Parental 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).

Termination

Termination Process

Employers can terminate a fixed-term contract for the following reasons:

• Business
• Personal
• Worker misconduct.

Notice and a written explanation for the termination is 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

The only time a notice is not required is 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.

VISA

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 Hi​​res, suitable for locally hired employees and intracompany transfers who do not qualify for an EU ICT Permit.​

VAT

General

19% standard rate.