The full cost of an employee in Cyprus, every fund itemised, and what they take home.

About 15.4% for salaries up to €68,904 a year. That is social insurance 8.8%, Redundancy Fund 1.2%, training levy 0.5%, Social Cohesion Fund 2.0% and General Healthcare System 2.9%. Above the cap only 4.9% continues, so a €150,000 salary carries about 9.7%. Add 8% if the Central Holiday Fund applies to you, and a twelfth more if you pay a 13th salary on top.

No. No law requires it. It is a strong custom, paid in December, and most local candidates expect it. Once it is written into the contract or a collective agreement, or has been paid regularly enough to become company practice, it is part of pay and cannot be removed without consent. State clearly in every offer whether the annual figure includes it.

From 1 January 2026 the national minimum wage is €979 gross a month on hiring and €1,088 after six months of continuous employment with the same employer. It applies to full-time employees. Some occupations, such as hotel staff, are covered by separate orders, and domestic, agricultural and shipping workers are excluded.

Maximum insurable earnings are €68,904 a year, which is €5,742 a month or €1,325 a week. Social insurance, the Redundancy Fund and the training levy are not charged on pay above it. The General Healthcare System has its own higher limit of €180,000, and the Social Cohesion Fund has none.

Yes, in two ways. An Employer of Record can employ the person for you. Or the foreign company can register directly as an employer with Social Insurance Services and run a Cyprus payroll without a local entity. The second route is cheaper but leaves all compliance, and the permanent establishment question, with you.

It is a Cyprus company that becomes the legal employer of your team member. It signs the contract, runs payroll, pays every contribution and files the returns. You direct the daily work. You pay the full employment cost plus a monthly fee per employee. Market fees vary widely with salary level and services, so get a written quote.

An employee whose first employment in Cyprus pays more than €55,000 a year, and who was not Cyprus tax resident in the previous 15 years, has half of that remuneration exempt from income tax for 17 years. Contributions are still due on the full salary. The relief belongs to the employee and is applied through payroll, so collect evidence of prior residence before the first payslip.

After 26 weeks of service the employer's minimum notice is one week. It rises to two weeks after a year, four weeks after two years, then five, six and seven weeks, reaching eight weeks after six years. Contracts may give more. Dismissal without a lawful reason can lead to compensation of up to two years of pay, so document the grounds.

Six months is the safe answer. During the first 26 weeks neither notice nor unfair dismissal protection applies. The older termination law allowed the parties to extend this to 104 weeks in writing, but the 2023 law on transparent working conditions limits probation to six months. Until the courts settle the overlap, treat anything longer as a risk.

The statutory minimum is 20 working days a year for a five-day week and 24 for a six-day week, after 48 weeks of work. Many employers give 21 or 22. There are around 14 to 15 public holidays, several of which follow the Orthodox calendar and move each year. Whether they are paid depends on the contract or on practice, and in office roles they almost always are.

A benefit with personal value, such as a company car, housing, school fees or private medical cover, is treated as employment income. It is valued, added to the payslip and taxed through payroll, and contributions normally apply to it as well. Valuation rules differ by benefit, so have each one reviewed before it is promised in an offer letter.

Yes, but it is not free of obligations. A person living and working in Cyprus is normally insured in Cyprus, so the foreign employer must register with Social Insurance Services and pay contributions, or use an Employer of Record. The employee becomes Cyprus tax resident and taxable on the salary. The employer should also check whether that person's role creates a permanent establishment.

Contributions for a month are due by the end of the following month, paid online to Social Insurance Services. Income tax withheld follows the same timetable. Late contributions attract a surcharge that published guidance puts at 3% for the first month, rising by three points each month to a maximum of 27%. Directors can be personally exposed for persistent arrears.

Only if they are truly independent. Someone who works fixed hours, for one client, under your direction and with your equipment is likely to be an employee whatever the contract says. If the authorities reclassify the relationship, you owe both employer and employee contributions for the whole period, with surcharges, and the person gains leave, notice and redundancy rights. For a long-term full-time role, employ.