Hiring guide in Cyprus

What should I know about hiring in Cyprus?

Many multinational corporations have begun looking at Cyprus as their primary choice for establishing a presence there since 2004. Those who choose to work in Cyprus will find an atmosphere similar to that of other developed European countries, with the added plus of significantly lower personal taxation.

In addition, every worker has the right to a formal written employment agreement outlining their job responsibilities, compensation, and duration of employment. Finally, it is essential to note that employees in Cyprus are protected by several regulations that ensure they have access to a secure and healthy workplace, receive reasonable compensation for their time and effort, and can organize if they want.

You must also contribute to your employees’ social security fund as an employer. Pension, health insurance, and unemployment insurance are all covered by Cypriots’ social security contributions.

Why is Cyprus a good choice for finding remote employees?

Modern, service-based, and free-market, Cyprus’s economy provides international and domestic investors and businesses with a wide variety of opportunities for development, expansion, and profit maximization. 

Cyprus’s convenient tax structure and reliable economic stability is an excellent location to operate internationally. In addition, an impressive number of Cypriot people have completed postsecondary education, making for a highly educated and talented labor population. 

Therefore, companies wishing to establish themselves or extend their current business would consider this country. Furthermore, many financial and other benefits are available to the companies that relocate to Cyprus because of the government’s openness to international investment.

How can Native Teams help you hire in Cyprus

In order to stand out in the increasingly competitive market for remote workers in Cyprus, businesses are offering more generous benefits and salary packages to prospective employees. An approach that can help is collaborating with Native Teams.

With our employer of record services, Native Teams can help you hire new staff, onboard them into your company, and ensure that they are paid, taxed, and provided for in accordance with Cyprus legislation.

 Hire your first Cyprus employee with Native Teams.

Legal requirements for hiring in Cyprus

Minimum wage

Contributions & taxes

According to a progressive scale, taxes on income in Cyprus range from 0% to 35%.

Employer tax

The projected cost to the company for each employee is 14.90% or 22.9% if the 8% holiday fund is not tax deductible.

In addition, the contributions include 8.30% for Social Security, 2% for the Social Cohesion fund, and 0.5% for Training and Development.

Employers are responsible for contributing to the Redundancy Fund at 1.2%, the National Health Care System at 2.9%, and the Holiday Fund at 8% if not exempt.

Corporate tax

Each form of Cypriot resident company is subject to the 12.5% corporate tax. All income earned in Cyprus or abroad is subject to taxation.

Employee tax

The overall payroll tax paid by employees is 10.95%; this includes 8.30% for social insurance and 2.65% for the national healthcare system (NHS).

Income tax

Tax rates for income go from 0% to 35%. This is because the tax system applies progressive rates on income. Overall rates may also be affected by various other variables, including marital status and family size.

To calculate the salary and taxes in Cyprus please click here.

Payroll cycle

In Cyprus, paychecks are issued on a monthly basis, and they must be received by the employee no later than the last business day of the month.

Is there a 13th salary in Cyprus?

Even though it’s not required by law, many employers give their staff a 13th paycheck in December as a gesture of appreciation.

Labor rules

Probation period rules

In Cyprus, the length of an employee’s probationary period is defined by the position and the terms of their employment contract. As a result, probation periods often last from six months to two years.

Notice period 

For both temporary and permanent workers, the required amount of notice before termination varies according to the employee’s tenure:

• You have to give a week’s notice if you’ve been with the company for between 26 and 51 weeks.
• Two weeks’ notice is required after 52-103 weeks of employment.
• After 104–155 weeks of employment, a 4-week notice is required.
• The standard notice period is five weeks for employees who have been with the company for between 156 and 207 weeks.
• You must give six weeks’ notice when your employment reaches 208-259 weeks.
• Seven weeks’ notice is required if you’ve been employed for between 260 and 311 weeks.
• More than 312 weeks: 8 weeks’ notice

There is only one exception to the notice requirement, which is in the case of a significant infraction committed by the employee.

Severance period

The following is the schedule for severance payments:

• 2-weeks’ pay for service up to 4 years;
• 5-to-10-year service 2 1/2 weeks’ pay;
• 11-to-15 years’ service 3 weeks’ pay;
• 16-to-20 years’ service 3 1/2 weeks’ pay;
• 20+ years’ service 4 weeks’ pay.

Working hours

In Cyprus, a standard workweek consists of no more than 40 hours spread across five days, while a six-day week is also an option.

Leave and benefits

Employees are eligible for Social Security-funded paid sick leave starting the fourth day of illness. Within 48 hours of beginning sick leave, the worker must submit a medical certification to the Social Security Administration.

Public holidays

With 14 official holidays, Cyprus celebrates:

1. Ash Monday / Clean Monday
2. Greek Independence Day
3. Greek Cypriot Day
4. Orthodox Good Friday
5. May Day
6. Orthodox Easter Monday
7. Orthodox Whit Monday
8. Assumption Day
9. Cyprus Independence Day
10. Ochi Day
11. Christmas Day
12. Boxing Day

Sick leave

Employees are eligible for Social Security-funded paid sick leave starting the fourth day of illness. Within 48 hours of beginning sick leave, the worker must submit a medical certification to the Social Security Administration.

Maternity leave & paternity leave

There is a paid maternity leave period of 18 weeks for eligible female employees. Mothers are eligible for 22 weeks of paid leave with their second child; with each subsequent child, they receive 26 weeks. Maternity leave is required for 11 weeks, two weeks taken before the due date and the remaining time taken after. Each qualified employee, including the father, must take up to 18 weeks of unpaid parental leave for each kid.

Other leave (marriage, bereavement, exam leave)

Bereavement leave

Workers can take up to five days off for the death of a child or spouse, three days off for a parent or sibling, and one day off for any other family member who has passed away.

Adoption leave

Workers who wish to adopt a child younger than 12 are eligible for up to 16 weeks of unpaid leave, to begin on the day they assume responsibility for the kid.

What are the minimum vacation days?

Workers who have put in at least 48 weeks of labor within a calendar year are eligible for four weeks of paid vacation. Workers who put in a full five days a week earn 20 paid vacation days, while those who put in six get 24.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Cyprus, please upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Cyprus?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.