A recent minimum wage
Employment & Labour Compliance in Cyprus
Cyprus introduced a general minimum wage only recently, and employers who have not revisited pay scales are exposed.
GCC business setup specialists
A change that caught existing employers out
For most of its modern history Cyprus had no general statutory minimum wage, with pay set by sector orders and collective agreements. A general minimum was introduced relatively recently, and employers operating on older pay structures have in some cases not adjusted. Alongside that sit the termination rules, which protect employees after a qualifying period of service, and contributions to both social insurance and the national health system.
- Pay scales checked against the current statutory minimum
- Termination protections and qualifying periods explained
- Both contribution streams budgeted from the first hire
20+
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
7,000+
Companies successfully established.
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What applies
Employer obligations in Cyprus
Two contribution streams, plus termination rules.
| Obligation | What it involves |
|---|---|
| Written terms | Required, with prescribed particulars. |
| Minimum wage | A general statutory minimum now applies. |
| Social insurance | Employer and employee contributions. |
| National health system | Separate contributions, employer and employee. |
| Annual leave | Statutory minimum entitlement. |
| Termination protection | After a qualifying period of service. |
The minimum wage, contribution rates, leave entitlements and termination protections are set by law and revised. Yours are confirmed against current requirements. Cyprus is a European Union member state, so EU directives, the single market and free movement rules all apply.
How it works
Getting employment right
Pay, contributions, then procedure.
01
Set compliant terms
Written particulars issued, pay checked against the statutory minimum and any applicable sector arrangements.
02
Register and contribute
Employer registrations completed and both social insurance and health contributions set up correctly from the first payroll.
03
Manage properly
Leave tracked, and termination handled with the qualifying period and prescribed grounds in mind.
Before your first hire
What to have in place
Two contribution registrations, not one.
- Written statement of employment particulars
- Pay checked against the statutory minimum
- Employer registration for social insurance
- Registration for health system contributions
- Payroll set up for both contribution streams
- Annual leave entitlement recorded
- Working hours and overtime rules
- Permits where staff are third-country nationals
- Termination grounds and procedure understood
- Any applicable sector arrangements checked
- Health and safety arrangements
- Record-keeping to the required standard
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Employment contract and particulars preparation
- Minimum wage compliance check
- Employer registrations for both contribution streams
- Full employer cost calculation
- Guidance on leave and working hours
- Guidance on termination grounds and procedure
- Policy documents
- Co-ordination with permit applications for foreign staff
Not included, quoted separately
- Contributions and government fees, paid at cost
- Salaries and termination payments
- Representation before labour tribunals
- Dispute resolution, quoted separately
- Recruitment and interviewing
- Occupational health services
- Training programmes
- Payroll processing unless included
Verify independently
Official Cypriot authorities
We file directly with these bodies on your behalf.
Cyprus Securities and Exchange CommissionCentral Bank of CyprusCivil Registry and Migration DepartmentDepartment of LabourSocial Insurance ServicesIntellectual property offices
Questions
Cyprus employment compliance — FAQs
Is there a minimum wage in Cyprus?
Yes, a general statutory minimum now applies, introduced relatively recently. Employers on older pay structures should check their scales against it.
When are employees protected from dismissal?
After a qualifying period of service, with prescribed grounds and procedure. Dismissing informally after that point is where claims arise.
What contributions do employers pay?
Social insurance and separate national health system contributions, both with employer and employee elements. Budget for both from the first hire.
How much annual leave is required?
A statutory minimum entitlement applies, and sector arrangements can provide more. We confirm what applies to your workforce.
Is a thirteenth salary required?
It is customary in many Cypriot businesses rather than universally statutory. Whether you are bound depends on contract and practice, and we advise on your position.
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