* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Euro (€)



Employment Cost


Annual Leave

20 days

In-demand Specialties*
Financial Services, Business , Property Management

The Ultimate Guide to Hiring Employees in Cyprus

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Cyprus

Employing in Cyprus requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Cyprus with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Cyprus quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Cyprus's convenient tax structure and reliable economic stability make it an excellent location for international operations.

A significant number of Cypriot people have completed postsecondary education, contributing to a highly educated and talented labour population.

Cyprus is strategically located at the crossroads of Europe, Asia, and Africa. This geographical advantage can be beneficial for businesses involved in international trade or seeking a central location for operations.

English is widely spoken and used in business in Cyprus. Additionally, many Cypriots are multilingual, with proficiency in languages such as Greek and often other European languages.


Fundamental Aspects of Employment in Cyprus

In Cyprus, the Labour Law does not require employment contracts to be in written form. However it is compulsory for employees to receive a written statement detailing their obligations, encompassing all aspects of the job. The key components included in the contract include:

  • Registered details of the company
  • Commencement date and duration of employment
  • Job role and workplace specifics
  • Compensation and benefits

Probationary Period in Cyprus

Employees undergo a minimum six-month probation period where employers can terminate them without giving a reason. This period can be extended up to two years if there's a written agreement between the employer and the employee at the start of the job.

Working hours in Cyprus

The working hours in Cyprus differ across various employment sectors and are subject to collective agreements, with the majority of employees typically working between 38 and 40 hours per week.

Overtime in Cyprus

The weekly maximum working hours in Cyprus is set at 48, encompassing any overtime. Although there are no legal regulations governing compensation for overtime work in Cyprus, it is typically determined through individual or collective agreements.

Navigating Key Aspects of Payroll in Cyprus

Cyprus has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Cyprus

1 January- 31 December is the 12-month accounting period that businesses in Cyprus use for financial and tax reporting purposes.

Payroll Cycle in Cyprus

The payroll cycle in Cyprus is usually monthly, with employees being paid on or before the last day of the month.
5.53 EUR p/h

Minimum Wage in Cyprus

The minimum wage for employees in Cyprus is typically 5.53 EUR per hour, amounting to ~885 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in Cyprus

The current minimum monthly wage in Cyprus stands at 885 EUR . As per legal regulations, it is mandated to rise to 940 EUR per month after completing six months of employment.

Bonus Payments in Cyprus

Although not a must, it is a common practice to provide employees with a 13th salary in December

Comprehensive Overview of Employment Taxes in Cyprus

Understanding the tax obligations for both employers and employees is crucial when operating in Cyprus's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Cyprus.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 14.9% on top of the employee salary in Cyprus.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Cyprus, the typical estimation for employee payroll contributions cost is around 10.95%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The personal income tax in Cyprus varies between 0% and 35%, and it is determined based on progressive rates. Various factors, including household status and the number of dependents, can influence the overall tax rates.

Tax Rate Income Bracket

Pension in Cyprus

If one is insured in Cyprus through employment, self-employment, or voluntary coverage, they can receive an old-age pension at 65. To qualify, they need to meet certain insurance conditions. The monthly social pension is 81% of the full basic statutory pension and is paid by the Social Insurance Fund.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Cyprus tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Cyprus

When it comes to terminating employment in Cyprus, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Employment contracts may be terminated based on valid reasons. Termination without notice may also occur in situations involving a breach of the employment contract. The reasons for termination include but not limited to:

  • Employee underperformance
  • Gross misconduct
  • Long-term illness
  • Redundancy or other business-related reasons

Notice Period

Notice periods are contingent on the duration of an employee's tenure with the employer. The breakdown is as follows:

  • 26 – 51 weeks of employment: 1 week's notice
  • 52 - 103 weeks of employment: 2 weeks' notice
  • 104 - 155 weeks of employment: 4 weeks' notice
  • 156 - 207 weeks of employment: 5 weeks' notice
  • 208 - 259 weeks of employment: 6 weeks' notice
  • 260 - 311 weeks of employment: 7 weeks' notice
  • 312 weeks and above: 8 weeks' notice

Severance Pay

Severance pay entitlements is determined by the employee's duration of service with the employing organization. The scale is structured as follows:

  • 2 weeks' pay: Employment for up to 4 years
  • 2.5 weeks' pay: Employment for 5 to 10 years
  • 3 weeks' pay: Employment for 11 to 15 years
  • 3.5 weeks' pay: Employment for 16 to 20 years
  • 4 weeks' pay: Employment for over 20 years

Annual Leave Entitlements and Company Policies in Cyprus

The annual leave entitlement in Cyprus is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Cyprus

In Cyprus, public holidays that happen to fall on the weekend are typically not carried over or observed.

Holiday Date

Paid Time Off in Cyprus

Maternity Leave in Cyprus

Paternity Leave in Cyprus

Sick Leave in Cyprus

Bereavement Leave

Military Leave

Parental Leave In Cyprus

Cyprus's Benefits Built Into Playroll

Competitive benefits package in Cyprus

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Cyprus's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Cyprus

Make your benefits package in Cyprus a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Death Benefit
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Cyprus

Employees are automatically covered by a Social Insurance Fund, providing cash benefits for various situations like marriage, maternity, sickness, and more.

Playroll allows you to provide localized benefits for employees in Cyprus within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Cyprus create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Cyprus

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Cyprus.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!