HR Software for Cyprus
Leave Policy
Maternity Leave
Pregnant employees who have worked for the same employer for 180 consecutive days are entitled to 18 weeks of paid leave. Two weeks of this must be taken before the birth of the child. During this period, the employee receives 72% of her salary and social security is responsible for this salary.
The employee may extend the vacation at the sole discretion of the employer and without pay.
Paternity Leave
Employees who have worked for the same employer for 180 consecutive days are entitled to 14 days of paid paternity leave. The leave must be taken within the first 16 weeks after the birth of the child. The employee receives 72% of his salary during this period and social security is responsible for this salary.
The employee may extend the vacation at the employer’s sole discretion and without pay.
Parental Leave
Employees are entitled to 8 months of parental leave. Both parents can decide how to divide the leave that should be taken after paternity and maternity leave. Both parents can take parental leave. This vacation is unpaid.
Parental leave cannot be extended.
Sick Leave
Employees are entitled to up to 156 days of paid sick leave. Depending on the duration, this vacation is paid at different rates and by different payers:
| Period | Pay | Payer |
|---|---|---|
| 0 – 3 days | 100% of base salary | Employer |
| 4 – 156 days | 60% of base salary | Social Security |
Pay & Tax
Minimum Wage Requirements
The minimum wage is 1000 EURO per month. However, in the first six months of employment it can be EUR 900.
Individual Income Tax
Personal income tax ranges from 0% to 35%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: B. the household status and the number of children.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to EUR 19,500 | 0% |
| Up to EUR 28,000 | 20% |
| Up to EUR 36,300 | 25% |
| Up to EUR 60,000 | 30% |
| Over EUR 60,000 | 35% |
Payroll Cost
The cost to the employer is generally estimated at 15.40% of the employee’s salary.
- Social Security – 8.80%*
- Social Cohesion Fund – 2%
- Human resources – 0.5%*
- Dismissal fund – 1.2%*
- General health system – 2.9%**
*Maximum salary for the contribution of EUR 5,239
**Maximum salary for the contribution of 15,000 EUR
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The standard working week lasts from Monday to Friday.
Retail and sales employees can have a standard working hour of 8 hours per day and 48 hours per week, Monday to Saturday.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.
Terminations in Cyprus can be complex. Employers cannot terminate at will in Cyprus and the termination must be for a valid reason.
Proper terminations include:
- Voluntary by the employee
- By mutual agreement
- Unilaterally by the employer due to:
1. Probation period
2. Serious offense by the employee
3. Disciplinary dismissal - By expiry of the contract
If the employee is to be dismissed, the employer must do so within a certain period of time after the reason for dismissal occurs. Otherwise, the dismissal may be considered unlawful. The notice period must be checked by legal counsel on a case-by-case basis.
Notice Period
The minimum notice period is seven days and increases depending on the length of employment.
- One week with a length of service of up to 51 weeks
- Two weeks with a length of service of up to 103 weeks
- Four weeks with a length of service of up to 155 weeks
- Five weeks with a length of service of up to 207 weeks
- Six weeks with a period of service of up to 311 weeks
- Seven weeks if you have worked for more than 312 weeks
Severance for Employees
In Cyprus, all employees who are dismissed unlawfully or because of the employer’s conduct are entitled to severance pay. The amount of the severance payment depends on the length of service:
- Up to 4 years of service – 2 weeks severance pay
- Between 5 and 10 years of service – 2.5 weeks severance pay
- Between 11 and 15 years of service – 3 weeks severance pay
- Between 16 and 20 years of service – 3.5 weeks’ pay
- Over 20 years of service – 4 weeks pay.
An employee is not entitled to severance pay upon termination of the employment relationship if he or she has reached retirement age before the date of termination of the employment relationship.
Statutory Time Off
Paid Time Off
Full-time employees are entitled to 20 days of paid time off (PTO) per year. Employees who work six days per week are entitled to 24 working days of paid time off per year. PTO eligibility is calculated monthly at 1.67 days per month, and the employee must take the leave in the current calendar year.
Public Holidays
There are 16 national holidays in Cyprus.
National holidays include:
- New Year’s Day
- Epiphany Day
- Greek Monday
- Greek Independence Day
- National Day
- Orthodox Good Friday
- Orthodox Good Sunday
- Orthodox Good Monday
- Labor Day
- Orthodox Pentecost Monday
- Assumption Day
- Cyprus Independence Day
- Ochi Day
- Christmas Eve
- Christmas Day
- Boxing Day
Onboarding
Onboarding
Onboarding takes 3 working days.
Additional Info
Employment Contract Details
Contracts can be written in English, Greek or both languages. They must be in writing and signed by both parties. A contract must contain:
- Surname
- Start date
- Length of employment
- Job description
- Conditions for Termination
Probation Period
Probationary periods are not mandatory. The maximum duration of the probationary period is 180 days (six months) and can be extended up to 2 years.