Our Locations

Cyprus

Helping businesses employ and expand in Cyprus

Meeting employment compliance requirements while expanding your team in Cyprus can be extremely challenging. To support you through the process, we are providing an overview of key information in Cyprus, looking at everything from hiring regulations to termination regulations.

Expanding into Cyprus

Key facts

Hiring
Financials
Termination
Leave
Annual Leave
Benefits

Contract Types             

In Cyprus, contracts can either be indefinite, fixed term or temporary. Contracts are often governed by a Collective Bargaining Agreement (CBA)..

Probation         

The standard probation period in Cyprus is up to six months and most companies give a 3 month probation period. It can be extended up to a maximum of 2 years by mutual agreement.

Working Hours 40 hours per week, 8 hours per day.

Overtime          

Employees may work a maximum of 48 hours per week. Overtime pay is not regulated by law in Cyprus apart from in the retail sector and is usually a matter of negotiation between the employer and employees. However, in certain industries working time is regulated by specific legislation and regulations or the CBA.

Other   

A 13th month salary is not mandatory but is often paid in December. Some employers will pay a 14th month salary as well.

Tax rates valid for 2024            

Corporation Tax: 12.5%                          

Consumption Tax: 19%                           

Employers’ Social Security Contributions

 15.4% + 8% Holiday Fund depending on type of activity                          

Employees’ Contributions

11.45%                             

Income Tax Rates        

Up to 19,500 – 0             

19,500 to 28,000 – 20%              

28,000 to 36,300 – 25%              

36,300 to 60,000 – 30%              

Over 60,000 -35%

Notice               

In Cyprus the notice period depends on length of service ranging from 1 week for 26 weeks to 1 years’ service up to a maximum of eight weeks with over 6 years’ service. If an employee decides to resign, they must give notice according to their tenure: one week for under a year, two weeks for up to five years, and three weeks for longer service, unless the contract specifies otherwise.

No notice is required during probation or for dismissal when the employee has committed an offence.

Dismissal Process

Employers should give written notice of termination including an explanation as to the reason. In cases of misconduct a warning should be given and the employee should be given the opportunity to explain their actions.

Severance Pay              

This is payable based on service in cases where the reason for termination may be considered illegal, such as redundancy or performance related reasons. The amounts payable are:

Up to 4 years’ service – 2 weeks’ salary per year

5 to 10 years’ service – 2.5 weeks’ salary per year

10 to 15 years’ service  – 3 weeks’ salary per year

15 to 20 years’ service – 3.5 weeks’ salary per year

Over 21 years’ service – 4 weeks’ salary per year

 

2024 Date

National Public Holidays: 14

New Year’s Day – 1st January    

No Day given in lieu

Epiphany – 6th January

No Day given in lieu

Clean Monday – 18th March

Day given in lieu – NA

Greek Independence Day – 25th March

Day given in lieu – NA

Cyprus National Holiday – 1st April

No Day given in lieu

Labour Day – 1st May

No Day given in lieu

Orthodox Good Friday – 3rd May

Day given in lieu – NA

Orthodox Easter Monday – 6th May

Day given in lieu – NA

Orthodox Pentecost Monday – 24th June

Day given in lieu – NA

Assumption of the Blessed Virgin Mary – 15th August

No Day given in lieu

Cyprus Independence Day – 1st October

No Day given in lieu

Ochi Day – 28th October              

No Day given in lieu

Christmas Day – 25th December

No Day given in lieu

Second day of Christmastide / St. Stephen’s Day – 26th December

No Day given in lieu

Holidays always falling at weekends are excluded. Days off in lieu are sometimes given when a public holiday falls at the weekend.

Paid legal entitlement (working days)             

Employees are entitled to 20 days’ annual leave in addition to public holidays. Leave is pro rated during the first year of employment and continues to accrue during periods of absence, for example whilst an employee is on sick leave.

With mutual agreement between the employer and employee, annual leave can be carried over for up to two years.

Sick

During the initial three days of illness-related absence, employees do not receive pay.  Following this period, they become eligible for partial salary coverage from the Social Insurance Fund. This sick pay extends for 156 days, with the possibility of an additional 156-day extension if the individual qualifies for an incapacity pension. Certain employers offer sick pay for the initial three days, while others cover the remainder of the salary beyond what the Social Insurance Fund provides.

Maternity

Pregnant employees have the right to take maternity leave ranging from 18 continuous weeks, extending to 22 weeks in the case of twins, and 26 weeks for triplets. It is mandatory to take 11 weeks’ maternity leave, starting 2 weeks before the birth.  Maternity pay is funded by the government at 72% of earnings. This amount rises with additional dependents by 4 weeks for each additional child. Any amount paid by an employer is deducted from the state funded payment. There is no capped limit to this pay and it is not taxed.

Adopting mothers are entitled to 16 weeks’ maternity leave (so long as the child is under 12).

New mothers’ employment rights are protected from notification of pregnancy up to 5 months after maternity leave ends.

Paternity           

Fathers are entitled to a maximum of two weeks of leave, which  can be taken  from the day the child is born until 16 weeks after the birth. This is funded by Social Security .

Parental            

Parents of children under the age of 8 can take a minimum of 1 day and a maximum of 5 weeks per calendar year.

Carer  

Up to 5 days of unpaid leave is available each year to care for a sick relative.

Bereavement Leave   

Employees are entitled to 5 days’ paid leave on the death of a close family member.

Force Majeure

Up to 7 days per year are available as unpaid leave to deal with emergency situations.

Medical

The Cypriot public health system is available to all residents with low co- payments and is complemented by a private health system. Waiting times can be long in the public system, so many companies will offer private medical insurance so employees (and often their families) can enjoy access to a wider range of specialists and hospitals with reduced waiting times.

 

We make expansion in Cyprus simple

Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.

EOR Services
Payroll Solutions
Global Mobility
Entity Services
PEO Solutions
Support & Advisory
HR Support
Contractor Payroll
Pricing

EOR Services

Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.

We can also take care of your global HR from multi-country payroll to onboarding and offboarding.

Payroll Solutions

Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.

Consider us an extension of your HR team, ready to answer all your questions large and small.

Global Mobility

Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.

We’ll guide your employees through the complexities of working in another country, helping them settle in fast.

Entity Services

Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.

PEO Solutions

Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.

Support & Advisory

The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.

HR Support

When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.

Contractor Payroll

Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.

Start hiring today – and onboard within hours.

Pricing

Budget confidently with transparent, competitive fees and no hidden costs.

Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.

Leapforward-Dashboard

We’re a people business with employee management software, not a software business that works in employee management!

At Leap29 we offer access to the latest technology and software to easily and effectively manage your employees from anywhere in the world.

Our bespoke online portal LeapForward helps ensure a smooth onboarding process, manages monthly payroll and easily facilitates additional bonuses and expenses. By streamlining your processes through our online portal, it will help you attract and retain great talent and take the pain out of payroll management.

Integrated fully with our global EOR services, LeapForward comes at no additional cost to you but is guaranteed to save you time and money whilst simplifying your employee management procedures.

Cyprus

Expansion Resources

Want to learn more about employment and expansion into Cyprus?

Check out our Cyrpus resource pages below for more information about the employment market in Cyprus.

Our Recruitment Services

A global recruitment partner you can trust

We solve global recruitment challenges for businesses large and small. Whether you’re building out a new team, expanding into another country or looking for a confidential executive level hire, you can trust us to deliver.

Need 80 contractors in Brazil? Looking for just one very special permanent hire? Want us to take care of your global HR? It’s all in a day’s work at Leap29.

Whatever and wherever your mandate, we can help.

Contract Recruitment

Find the right contractor skills and experience at the right price.

Explore

Permanent Recruitment

Connect with great permanent talent to drive your business forward. We help you find both key strategic hires to lead organisational growth and project specialists to deliver on deadlines and budgets.

Explore

Workforce Management

Reduce the complexity of managing workers in different countries and save yourself time, energy and money.

Explore

Local expertise, global reach

Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.

180+

Talk to an expert today

Already have your own entities? Just starting out? Whatever stage you’re at in your global expansion journey, we can help.

Want to expand into Cyprus?

Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.