Hire in Cyprus

Hire in Cyprus

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Currency of Cyprus

Euro (EUR)

The Capital of Cyprus

Nicosia

Time Zone in Cyprus

GMT+2

Important Facts About the Country of Cyprus

Introduction to Cyprus

Cyprus, situated in the eastern Mediterranean Sea, transitioned to independence from Great Britain in 1960. Since then, it has been recognized as the Republic of Cyprus.

What to Know about Geography of Cyprus

Encompassing a land area of 9,251 square kilometers, Cyprus ranks as the third largest island in the Mediterranean. Stretching 240 kilometers in length and 100 kilometers in width, it is situated approximately 65 kilometers south of Turkey, 100 kilometers west of Syria, and 770 kilometers southeast of mainland Greece. Its coastline spans 640 kilometers, characterized by indented rocky formations interspersed with extensive sandy beaches.

Climate in Cyprus

Cyprus experiences an intense Mediterranean climate marked by scorching, arid summers and wet winters. Spring and autumn are brief, featuring unpredictable weather patterns. In Nicosia, summer temperatures typically fluctuate between 21 and 37 degrees Celsius, while winter temperatures range from 5 to 15 degrees Celsius.

The Culture of Cyprus

Cyprus is characterized by two distinct ethno-religious communities: the Greek Cypriots and the Turkish Cypriots, who maintain cultural ties with Greece and Turkey respectively. The nation is predominantly divided into two regions, each with its unique geography, culture, political landscape, and daily routines.

Religions Observed in Cyprus

Most Greek Cypriots, comprising about 73% of the population, adhere to Christianity, particularly Greek Orthodox beliefs. Conversely, Turkish Cypriots, constituting approximately 25% of the populace, predominantly follow Sunni Islam. Additionally, there exist smaller communities of Anglicans, Catholics, and Armenian Apostolics within the country.

Languages Spoken in Cyprus

Cyprus officially recognizes two languages: Greek and Turkish. Additionally, Armenian and Cypriot Maronite Arabic are acknowledged as minority languages. English holds significant prominence, being widely spoken and prevalent on road signs, notices, and advertisements. During British colonial rule until 1960, English served as the official language, persisting in courts of law and legislation until 1996. Presently, it is spoken by roughly 80% of the population.

Cyprus Human Resources at a Glance

Employment Law Protections in Cyprus

Employment relationships in Cyprus are governed by standard contract law principles, bolstered by statutory rights and obligations where necessary. The Constitution safeguards fundamental employment rights such as the right to work, strike, and equal treatment. Key statutes concerning employment include:

  • – Termination of Employment Law of 1967 (amended)
  • – Social Insurance Law of 1980 (amended)
  • – Annual Paid Leave Law of 1967 (amended)
  • – Protection of Maternity Law of 1997
  • – Minimum Salaries Law (amended)
  • – Equal Treatment at Work and Employment Law of 2004 (amended)
  • – Health and Safety at Work Law of 1996 (amended)
  • – Law 100(I)/2000, mandating employers to inform employees about contract or employment conditions
  • – Collective Redundancies Law of 2001

Starting in 2023, full-time employees must receive an initial monthly wage of at least €885 gross, which increases to at least €940 gross after six months of continuous employment with the same employer.

Employment Contracts in Cyprus

The employment contract should include the following details:

  • – Identification of both the employee and employer
  • – Workplace location and the registered address of the employer
  • – Employee’s position and job responsibilities
  • – Commencement date of the contract (and termination date for fixed-term contracts)
  • – Notice period requirements
  • – Entitlement to paid annual leave
  • – Details of remuneration and payment frequency
  • – Weekly workdays and hours
  • – Any applicable collective agreements

Employment contracts may be drafted in any language comprehensible to both parties. In cases where the language used is unfamiliar to the employee, its terms must be clarified. The written contract should be provided to the employee within one month of starting employment.

Cyprus Contract Terms

The prevalent form of employment in Cyprus is an indefinite-duration employment contract.

In cases where a collective agreement is established between trade unions and employers, individual job contracts become optional.

Part-time employees enjoy equivalent rights and conditions to those of full-time employees.

Pre-Employment Checks

Typically, health assessments are allowed when necessary to ascertain whether a candidate possesses the physical capability to fulfill the specific duties outlined for the job position.

As for credit history inquiries, they are only permissible, even with the employee’s consent, if the role entails financial oversight or frequent handling of funds.

Cyprus's Guidelines Regarding Probation Period/Trial Period

The probation period is typically limited to six months, with exceptions for certain positions like director roles. Within this probationary period, employers retain the right to terminate employees without specific cause.

Regulations and Rules Regarding Working Hours in Cyprus

In Cyprus, the standard working week consists of 40 hours. The total weekly working hours, including overtime, must not exceed 48 hours, with a maximum of eight hours of overtime per week. If the daily work period exceeds six continuous hours, employees are entitled to a minimum break of 15 minutes.

Additionally, employees should have a minimum of 11 consecutive hours of rest per day and 24 consecutive hours of rest per week. Moreover, every 14 days, they should enjoy either two rest periods of 24 consecutive hours each or one rest period of 48 consecutive hours.

Cyprus Laws Regarding Overtime

Overtime pay is not legally mandated and is subject to negotiation between the employer and the employee. Nevertheless, certain industries may address overtime compensation within collective agreements.

Cyprus Timesheets and Record Keeping

Employers are required to maintain comprehensive payroll and payment records for their employees. These records should encompass employee particulars, offer letters, employment contracts, working hours, attendance logs, paid leave allocations, remuneration details, overtime earnings, expense reimbursements, proof of payment, as well as documents indicating contributions and deductions.

The Cyprus Tax Authority reserves the right to initiate inquiries within a six-year timeframe (or up to 12 years in cases of fraud or deliberate deception). It is advisable for employers to retain payroll and tax-related documents for this duration.

Health and Safety in the Workplace

Employers must prioritize the prevention of workplace injuries, bearing the financial responsibility for this endeavor. This includes conducting assessments of occupational hazards and furnishing the workplace with necessary safety equipment. Moreover, all employees should receive adequate health and safety training throughout their employment tenure.

Rules Regarding Bonus and 13th Month Pay in Cyprus

Bonus payments are left to the discretion of the employer and may be distributed based on individual or company performance, although this is not legally required.

However, the 13th and/or 14th salary must be provided under the following circumstances:

1) If there is a collective agreement in effect,
2) If stipulated in a personal contract or employment agreement upon hiring,
3) If it is an established practice within the company.

Once the 13th and/or 14th salary is disbursed, it becomes a customary practice for the company and is consequently expected to be paid out annually, even if not explicitly stated in a written agreement.

Termination

Termination without notice may occur under the following circumstances:

  • – Commission of a criminal offense by the employee
  • – Misconduct or improper behavior by the employee
  • – Breach of employment rules or regulations

Severance compensation is not applicable if termination results from:

  • – Inadequacy to perform the job duties due to lacking skills or temporary incapacitation
  • – Redundancy caused by economic fluctuations
  • – Conclusion of a fixed-term contract (either by its expiration date or upon completion of the task/project)
  • – Force majeure events, acts of war, civil unrest, or natural disasters.

The following categories of employees are safeguarded from termination:

  • – Pregnant women and new mothers (for up to five months after maternity leave ends)
  • – Employees engaged in trade union-related activities
  • – Employees on sick leave
Requirements Regarding Notice Periods in Cyprus

When an employer decides to terminate an employee, written notice must be provided to the employee. The duration of the notice period is contingent upon the length of continuous employment:

– 26-51 weeks: 1 week
– 52-103 weeks: 2 weeks
– 104-155 weeks: 4 weeks
– 156-207 weeks: 5 weeks
– 208-259 weeks: 6 weeks
– 260-311 weeks: 7 weeks
– More than 312 weeks: 8 weeks

Payment of wages in lieu of notice is permitted.

During the notice period, the employee is entitled to paid time off during regular working hours to seek new employment. This paid time off should not exceed eight hours per week or 40 hours in total.

If an employee wishes to resign, they must also provide notice to the employer, the duration of which depends on the length of continuous employment:

– 26-51 weeks: 1 week
– 52-259 weeks: 2 weeks
– More than 260 weeks: 3 weeks

Redundancy/Severance Pay in Cyprus

In cases of redundancy, the state Redundancy Fund provides payments based on the employee’s length of service and salary, as follows:

 Up to 4 years of service: 2 weeks’ wages for each continuous period of 52 weeks
 5-10 years of service: 2.5 weeks’ wages for each continuous period of 52 weeks
 11-15 years of service: 3 weeks’ wages for each continuous period of 52 weeks
 16-20 years of service: 3.5 weeks’ wages for each continuous period of 52 weeks
 More than 20 years of service: 4 weeks’ wages for each continuous period of 52 weeks (capped at 75.5 weeks of wages)

Severance pay for unlawful dismissal is the responsibility of the employer and follows the same calculation method as redundancy payments, with a cap at two years’ wages.

To calculate severance, employment of more than 26 weeks in a given year is considered as a full year of employment.

Post-Termination Restraints / Restrictive Covenants

Restrictive covenants must adhere to reasonable geographical and temporal limitations and should not impede an employee from pursuing a lawful profession.

For a restrictive covenant to be legally enforceable:

  • – The work involved should be of a sensitive nature, such as Research and Development (R&D).
  • – Employers must provide monetary compensation during the non-compete period or when a restrictive covenant is active.

To safeguard confidential interests and information, employers should implement non-disclosure agreements. It is presumed that the employee’s obligation to act in good faith persists beyond termination.

Trade Unions / Collective Agreements in Cyprus

There is no legal obligation for workers to be affiliated with a trade union. Nonetheless, certain industries, such as hotels, the transportation sector, and building & construction, often have trade union representation and negotiate collective agreements.

Tax and Social Security Information for Employers in Cyprus

Personal Income Tax in Cyprus

Personal income tax (PIT) in Cyprus applies to the global income of individuals classified as tax residents in Cyprus. To comply with tax regulations, employees must register with the Tax Department and file a personal tax return by July 31 after the end of the assessment tax year.

Employers are mandated to withhold income tax through the pay-as-you-earn (PAYE) system and remit the payment to the tax department by the subsequent month’s end.

Annual Chargeable Income (EUR) Tax Rate % Accumulated Tax (EUR)
0 – 19,500 0.0 0
19,501 – 28,000 20.0 1700
28,001 – 36,300 25.0 3755
36,301 – 60,000 30.0 10,885
>60,001 35.0  

Social Security in Cyprus

Contributions Employer (%) Employee (%) Annual Cap (EUR)
Social Insurance Contributions 8.8 8.8 60,060
Social Cohesion Fund 2.0    
National Health Service (NHS) 2.9 2.65 180,000
Redundancy Fund 1.2   60,060
Industrial Training Fund 0.5   60,060

Starting in 2024, the social insurance contribution rate will rise to 8.8%. Subsequently, it will increase by 0.5% every five years until it reaches 10.3% on January 1, 2039.

*The above rates serve as a broad guideline. Actual rates charged will differ.

Important Information for Employees in Cyprus

Salary Payment

In Cyprus, there are no legal requirements dictating the frequency of salary payments, allowing employers to determine the pay period. Nonetheless, it is typical for employees to receive their salaries on a monthly basis.

Payslip

Employers typically issue monthly payslips, which can be provided in either electronic or hard copy format. Additionally, employers must furnish an annual certificate of emolument. This certificate should contain the employee’s details along with gross emoluments, income tax, social insurance, and healthcare contributions.

Annual Leave

An employee who has completed 48 weeks of work within a year is entitled to four weeks of paid annual leave. The entitlement is as follows:

  • – For employees on a 5-day work week: 20 working days
  • – For employees on a 6-day work week: 24 working days

For employees who have worked less than 48 weeks, the annual leave is prorated accordingly. Temporary absences from work, such as sickness, maternity, and paternity leave, count towards the 48-week requirement.

Annual leave can be carried forward for up to two years with the mutual agreement of both employer and employee. Upon termination, the employer must compensate the employee for any unused annual leave.

During annual leave, an employee’s wages are either paid directly by the employer or from the Central Holiday Fund, to which employers are obliged to contribute.

Employers can apply for exemption from contributing to the Central Holiday Fund if they provide more annual leave than required by law. However, they must still pay wages to the employee during the leave period.

To be eligible for payments from the Central Holiday Fund, an employee must have worked for at least 13 weeks in the previous year and take annual leave for at least nine consecutive days. If the employee worked less than 48 weeks in the previous year, the annual leave taken must be for at least four consecutive days.

Sick Leave

Social Insurance disburses sick leave benefits starting from the fourth day of absence due to illness, with no benefits issued for the initial three days. Employees are required to submit a claim to the Ministry of Labor, Welfare, and Social Insurances. It’s not mandatory for employers to cover the first three days of sick leave. The maximum duration for which sick leave benefits are payable within a single instance of interrupted employment is 156 days.

Compassionate & Bereavement Leave

Carer’s Leave:

Employees have the right to take seven unpaid days off to care for a dependent.

Bereavement Leave:

Employees are entitled to up to five days of leave following the death of a child or spouse, three days for the loss of a parent or sibling, and one day for other family members’ passing.

Maternity & Parental Leave

Maternity Leave:

Maternity leave spans 18 consecutive weeks, with 11 weeks being mandatory. This includes two weeks before the expected delivery date, the week of delivery, and eight weeks post-delivery. Prior notice to the employer, along with a medical certificate indicating the expected delivery week, is required from the pregnant employee.

Maternity leave extends for multiple births, adding four additional weeks per child.

Paternity Leave:

Paternity leave lasts for two weeks and is available to employees whose spouse gave birth, had a child via surrogate, or adopted a child under 12 years old. This leave must be taken continuously within 16 weeks from the birth or adoption date. Employees need to inform the employer in writing at least two weeks in advance before taking paternity leave.

Surrogate Leave:

Female employees expecting a child through surrogacy are granted 18 weeks of leave. They must provide a medical certificate along with a relevant court order. This leave can start two weeks before the expected delivery week and is extended by four weeks per additional child (e.g., 22 weeks for twins).

Adoption Leave:

Female employees adopting a child under 12 years old are entitled to 12 weeks of maternity leave. Notice to the employer must be given at least six weeks before the adoption’s effective date.

Parental Leave:

Employed parents are eligible for up to 18 weeks of unpaid parental leave. For multiple births, the entitlement extends to 18 weeks per child, while single parents can take up to 23 weeks. A written notice specifying the leave’s start and end dates must be provided to the employer at least three weeks in advance.

Public Holidays

Cyprus observes a total of 14 public holidays.

Benefits to the Employee in Cyprus

Cyprus Statutory Benefits

The Social Insurance Scheme in Cyprus covers all individuals, whether employed as workers or self-employed. It offers a range of benefits, including:

  • – Sickness benefit
  • – Maternity grant and allowance
  • – Benefits for work-related accidents and occupational diseases, encompassing temporary incapacity (injury benefit), disability benefit, and death benefit
  • – Invalidity pension
  • – Redundancy payments
  • – Unemployment benefit
  • – Old-age pension
  • – Widows’ pension
  • – Orphans’ benefit
  • – Funeral grant

Rules Regarding Visas and Foreign Workers in Cyprus

General Information

Visas are issued by all Diplomatic Missions (Embassies and General Consulates) of the Republic of Cyprus, as well as by all Honorary Consulates of the Republic of Cyprus abroad in their respective countries. Non-EU nationals planning to stay in Cyprus for more than three months must apply for a long-stay visa. EU nationals intending to reside and work in Cyprus for over three months need to obtain a residence permit. Within the initial three months, EU nationals must apply for a Certificate of Registration within eight days of arrival in Cyprus. The authority responsible for granting entry permits and residence permits is the Civil Registry and Migration Department of the Ministry of Interior.

The application process for a work permit for non-EU nationals may take up to six months and is overseen by the Council of Ministers and the Ministerial Committee. Specific conditions, such as the absence of qualified local candidates to fulfill the employer’s specific requirements, must be met for the approval of a work permit.

Getting A Tax Number

To obtain a Taxpayer’s Identification Code (TIC), individuals need to complete form TD2001 (Application for Obtaining a Tax Number) provided by the Department of Inland Revenue.

The required documents vary based on the individual’s status:

For Cypriot citizens: A copy of their Identification Card (ID).

For EU citizens residing in Cyprus: A copy of the ‘Registration Certificate’ issued by the Civil Registry and Migration Department.

For Non-EU citizens residing in Cyprus: A copy of the ‘Permanent Residence Certificate’ issued by the Civil Registry and Migration Department.

For individuals not residing in Cyprus: A copy of any official certificate from their country of residence, clearly indicating their Tax Code/Identification Card (ID)/Social Insurance number, along with a letter explaining the reason for requesting registration with the Cyprus tax authorities.

Public Holidays Recognized by Cyprus in 2024

  Occasion Date
1 New Year’s Day January 1
2 Epiphany January 6
3 Green Monday March 18
4 Greek Independence Day March 25
5 National Day April 1
6 Labour Day May 1
7 Orthodox Good Friday May 3
8 Orthodox Easter Monday May 6
9 Orthodox Whit Monday June 24
10 Assumption Day August 15
11 Cyprus Independence Day October 1
12 Ochi Day October 28
13 Christmas Eve December 24
14 Christmas Day December 25
15 Boxing Day December 26

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