Salary Calculator
Cyprus
Streamline your international hiring strategy with the Native Teams payroll calculator. This tool empowers employers to accurately assess the total cost of employment in more than 85 countries around the world.
By inputting salary information, you'll receive a detailed analysis of all associated expenses, such as taxes, healthcare, and pension contributions, enabling informed hiring decisions.
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How does the salary calculator for Cyprus work?
Our payroll calculator for Cyprus will help you calculate the salary for your next employee and present all the deductions applicable for both employers and employees.
The calculation starts with the gross salary, which is the agreed-upon amount between the employer and the employee before taxes and contributions. The calculator will apply all the mandatory deductions for employers, including social insurance contributions, healthcare contributions, and contributions to redundancy funds, industrial training funds, and cohesion funds.
After applying the deductions for employers, the calculator applies the employee portion of deductions, which include social security and healthcare contributions. Finally, the calculator applies a progressive income tax rate.
After applying all the taxes and deductions, the calculator displays the net salary - the amount which is ready for use by the employee.
What is the salary cost in Cyprus?
As explained above, the total cost of salary in Cyprus involves components like taxes and deductions applicable for both the employee and the employer.
The gross salary is the starting point to which the calculator applies all the taxes and deductions. Employees must pay 8.3% for social insurance contributions, 1.2% for redundancy fund, 0.5% for industrial training, and 2% for cohesion fund.
When it comes to the employees’ portion of contributions, they’re required to pay social insurance contributions of 8.3%, GeSY (General Healthcare System) contributions of 2.65%, and an income tax, depending on the amount earned.
How much tax do you pay in Cyprus?
In Cyprus, the personal income tax is calculated on a progressive scale based on the employee’s annual taxable income. The rates apply to both residents and non-residents on income earned within Cyprus and are calculated as follows:
-Income up to €19,500: Tax rate of 0%.
-Income from €19,501 to €28,000: Tax rate of 20%.
-Income from €28,001 to €36,300: Tax rate of 25%.
-Income from €36,301 to €60,000: Tax rate of 30%.
-Income over €60,001: Tax rate of 35%.
*Please note that these rates can vary based on legislative changes.
What are the mandatory employee benefits in Cyprus?
Employment benefits in Cyprus are mainly regulated by the country’s labour law. The labour law requires both employers and employees to contribute to the social security system, which provides pension benefits, unemployment benefits, sick leave, maternity leave, parental leave, and others. Employees must also contribute to the General Healthcare System, which provides access to public and private healthcare services.
Employees in Cyprus are also entitled to annual leave, public holidays, severance pay, and tax-free allowances such as meal vouchers or allowances, transportation reimbursement, and funding for professional development.
Are there any other benefits or additional expenses?
Many employers in Cyprus are providing additional or extra employee benefits to increase employee satisfaction and attract top talent to their companies. Such benefits may include supplementary coverage for healthcare services, performance bonuses, voluntary contributions to employee pension plans, and additional payments during holiday periods.
Depending on the employer’s policy, some employees in Cyprus also receive paid leave for their weddings and time off in the event of the death of a close family member.
What is the difference between gross and net in the Cyprus salary calculator?
The difference between the gross and net salary in Cyprus lies in the mandatory deductions applied to the gross amount before arriving at the take-home pay.
The gross salary is the total agreed-upon salary before any deductions. This amount is used as a base to calculate the mandatory taxes and contributions for the employer and the employee.
After applying all of these deductions and taxes, the employee is left with the net salary, which is the actual take-home amount.
How can Native Teams help with employment, salary and taxes in Cyprus?
Native Teams offers an all-in-one solution to help you manage employment, taxes, and salaries in Cyprus. Our all-inclusive solution is designed to help you simplify payroll management while ensuring full compliance with the tax and labour laws in Cyprus.
In addition to our all-inclusive solution, you can also enjoy ongoing support from our professional team, helping you easily calculate salaries, fulfil your tax obligations, and administer employee benefits to yourself or your team members in Cyprus. With the help of the Native Teams platform, you can easily reduce administrative tasks and compliance worries from your work and enjoy the peace of mind that your legal obligations are met with maximum accuracy.
