Cyprus has had a turbulent start to the twenty-first century and was particularly heavily struck by the 2012–2013 financial crisis. However, it has emerged victorious in recent years, stabilizing and growing its economy. The country has reverted to its former glory as an excellent site for business.
Cyprus is a desirable destination for multinational firms due to its highly educated workforce and society known for its energetic entrepreneurs and international orientation. Although the country has numerous advantages, forming an entity might be challenging. With our EOR-service, you avoid the trouble of establishing your corporation and can grow into Cyprus within days.
Cyprus’ economy is centered on a thriving tourist and maritime transportation sector. Cyprus has one of the largest shipping fleets in the European Union and is often regarded as having a strong finance and real estate sector. Cyprus is a high-income country with a developed economy and a dynamic structure.
Cyprus’ economy has bright and exciting prospects, owing to the growing industrial sector and the aim to serve as a link between East and West due to its geographic location.
EOR Cyprus Employment Contracts
While employment contracts are not required to be in writing, it is required that the employer state the terms of employment of any employee in writing, and thus it is best practice to have a written employment contract in place. The agreement should be written in the local language and include the employee’s remuneration, benefits, and termination provisions. An offer letter and employment contract in Cyprus should always have the salary and any other compensation in Euros, not in a foreign currency.
The workweek should be between 38 and 40 hours in length and should not exceed 48 hours on average, including overtime.
Types of leave
Employees who work a five-day workweek are entitled to 20 paid vacation days, while those who work a six-day workweek are entitled to 24 paid vacation days.
Cyprus recognizes 14 public holidays.
Except in limited circumstances where applicable legislation exists or when it is stipulated in the employment contract, sick leave and reimbursement are not regulated by law. Under social security law, sick pay begins on the fourth day of rest.
Maternity and Paternity leaves
Female employees are entitled to 18 weeks of maternity leave, which is increased to 22 weeks if they have twins and 26 weeks if they have at least three children. During this period, the state pays 72% of the employee’s wage.
Paternity leave is granted to fathers for 16 weeks, two of which must be taken within 16 weeks of the child’s birth.
Before their child reaches the age of eight, parents are entitled to up to 18 weeks of yearly parental leave for daycare.
The employment agreement should indicate the procedure to be followed in the event of a termination of employment. The length of the working relationship determines the duration of the notice period. There will be a one-week notice period for employees who have worked between 26 and 51 weeks. There will be a two-week notice period for employees who have worked between 52 and 103 weeks. There will be a four-week notice period for positions that last between 104 and 155 weeks in length. There will be a 5-week notice period for positions with a duration of 156–207 weeks. There will be a six-week notice period for jobs that last between 208 and 259 weeks. There will be a 7-week notice period for jobs that span between 260 and 311 weeks in duration.
Employees who have worked for the company for more than 312 weeks will be offered an 8-week leave of absence. This rule is only an exception only if the employee has committed a significant infraction. It is necessary to communicate the notice period in writing.
The amount of severance pay is computed based on the length of time an employee has worked for the company. If an employee leaves the company after working there for up to four years, they are entitled to two weeks’ remuneration for each year employed. Individuals with a five- to ten-year service experience are eligible to receive 2.5 weeks’ compensation per year. Each year of service for employees with 11 to 15 years of experience is compensated with three weeks’ pay. Employees with 16 to 20 years of service are entitled to 3.5 weeks of compensation for each year of employment. Lastly and most importantly, employees who have been with the business for more than 20 years are entitled to four weeks of compensation each year.
Employers typically hire for six months to two years, which must be specified in the employment agreement.
The minimum wage
Cyprus’ compensation legislation lacks any provision for a national minimum wage. On the other hand, certain sectors create their own minimum wage rates, or companies are required to deal directly with employees. The minimum salary for some types of assistants and hairdressers is set at 870 euros per month, 425 euros per month for unskilled agricultural workers, and 767 euros per month for professional agrarian workers.
Always use Acvian Payroll Cost Estimator to get familiar with the total payroll amount in every country, including EOR Cyprus.
EOR Cyprus Additional Benefits
- Frequently, the following benefits are offered:
- Pension (provident) fund
- Medical insurance
- Automobile allowance
- Gym allowance
- Meal allowance
The bonus for the thirteenth month is prevalent in Cyprus. Additionally, management-level personnel frequently receive a performance-based incentive that typically ranges from one to three times their average monthly income.
Establishing a branch office or subsidiary in EOR Cyprus to hire a small team is a time-consuming, expensive, and challenging endeavor that requires extensive planning. The Cypriot labor law provides robust worker rights, but it necessitates meticulous attention to detail and a thorough awareness of local best practices. Acvian makes it painless and straightforward to extend your business into Cyprus. We can assist you in hiring your preferred candidate, managing human resources and payroll, and ensuring that your company is following local legislation, all without the expense of establishing a foreign branch office or subsidiary. Our Cyprus PEO and Employer of Record solution gives you the peace of mind you need so that you can concentrate on running your organization.