Cyprus officially called the Republic of Cyprus, is an island country in the eastern Mediterranean Sea. It is the third-largest and third most populous island in the Mediterranean and is located south of Turkey, west of Syria, northwest of the Gaza Strip, Israel, and Lebanon, north of Egypt, and southeast of Greece. Cyprus has an open, free-market, service-based economy with some light manufacturing.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Cyprus.
On this page
Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Cyprus
Calculate net salary post deductions and compare it with the salary in other countries instantly.
Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Cyprus
Easily onboard your remote talent in Cyprus through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
Cyprus officially called the Republic of Cyprus, is an island country in the eastern Mediterranean Sea. It is the third-largest and third most populous island in the Mediterranean and is located south of Turkey, west of Syria, northwest of the Gaza Strip, Israel, and Lebanon, north of Egypt, and southeast of Greece. Cyprus has an open, free-market, service-based economy with some light manufacturing.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Cyprus.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Cyprus planning:
The national holidays mentioned below are valid for the year 2026.
| January 1 | New Year`s Day | |
| January 6 | Epiphany | |
| February 23 | Green Monday | Movable - Orthodox Shrove Monday |
| March 25 | Greek Independence Day | |
| April 1 | National Day | |
| April 10 | Orthodox Good Friday | Movable |
| April 12 | Orthodox Easter Sunday - Catholic Easter Sunday | Movable |
| April 13 | Orthodox Easter Monday | Movable |
| May 1 | Labor Day | |
| June 1 | Pentecost Monday | Movable |
| August 15 | Assumption Day | |
| October 1 | Cyprus Independence Day | |
| October 28 | Ochi Day | |
| December 24 | Christmas Eve | |
| December 25 | Christmas Day | |
| December 26 | Boxing Day |
The approximate time for sharing the contract with an employee in Cyprus is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Employed persons are compulsorily insured under a state-administered Social Insurance Fund. The Scheme provides cash benefits for marriage, maternity, sickness, unemployment, widowhood, invalidity, orphanhood, old age, death, and employment injury.
| Benefit | Employer Contribution |
| Social Insurance Fund | 8.8% |
| Redundancy fund | 1.2% |
| Training Development Fund | 0.5% |
| Social cohesion fund | 2% |
| GHS contributions | 2.9% (capped at EUR 180,000 annual income) |
| Holiday fund (if not exempt) | 8% |
NOTE: The monthly earnings cap of social security contributions is €5,239.
Generally, the weekly working time ranges from 38 to 40 hours in most companies. Employees are entitled to a minimum of 11 continuous hours of rest per 24 hours and 24 continuous hours of rest per week. When the working day is longer than six hours, the worker is entitled to a rest break of 15 consecutive minutes.
The maximum working week is 48 hours including overtime. Compensation for overtime work is not regulated by law in Cyprus but is a matter of individual or collective agreement.
There is a minimum probation period of six months prescribed by law during which an employer may dismiss an employee without cause. This period may be extended for up to two years, provided that there is a written agreement to that effect between the employer and the employee made at the establishment of the employment relationship.
| Length of Service | Notice Period |
| Up to 26 weeks | No notice |
| From 26 to 51 weeks | 1 week |
| From 52 to 103 weeks | 2 weeks |
| From 104 to 155 weeks | 4 weeks |
| From 156 to 207 weeks | 5 weeks |
| From 208 to 259 weeks | 6 weeks |
| From 260 to 311 weeks | 7 weeks |
| From 312 weeks and over | 8 weeks |
NOTE: The only time a notice is not required is when the employee has committed a serious offense. The notice period must be given in writing.
Generally, the weekly working time ranges from 38 to 40 hours in most companies. Employees are entitled to a minimum of 11 continuous hours of rest per 24 hours and 24 continuous hours of rest per week. When the working day is longer than six hours, the worker is entitled to a rest break of 15 consecutive minutes.
The maximum working week is 48 hours including overtime. Compensation for overtime work is not regulated by law in Cyprus but is a matter of individual or collective agreement.
There is a minimum probation period of six months prescribed by law during which an employer may dismiss an employee without cause. This period may be extended for up to two years, provided that there is a written agreement to that effect between the employer and the employee made at the establishment of the employment relationship.
| Length of Service | Notice Period |
| Up to 26 weeks | No notice |
| From 26 to 51 weeks | 1 week |
| From 52 to 103 weeks | 2 weeks |
| From 104 to 155 weeks | 4 weeks |
| From 156 to 207 weeks | 5 weeks |
| From 208 to 259 weeks | 6 weeks |
| From 260 to 311 weeks | 7 weeks |
| From 312 weeks and over | 8 weeks |
NOTE: The only time a notice is not required is when the employee has committed a serious offense. The notice period must be given in writing.
Employed persons are compulsorily insured under a state-administered Social Insurance Fund. The Scheme provides cash benefits for marriage, maternity, sickness, unemployment, widowhood, invalidity, orphanhood, old age, death, and employment injury.
| Benefit | Employer Contribution |
| Social Insurance Fund | 8.8% |
| Redundancy fund | 1.2% |
| Training Development Fund | 0.5% |
| Social cohesion fund | 2% |
| GHS contributions | 2.9% (capped at EUR 180,000 annual income) |
| Holiday fund (if not exempt) | 8% |
NOTE: The monthly earnings cap of social security contributions is €5,239.
WorkMotion handles the full employment lifecycle in Cyprus through its partner network. Therefore, your company can hire someone in Cyprus without registering a local entity, navigating Cypriot labor law from scratch, or building a local payroll setup.
WorkMotion generates an employment contract aligned with Cyprus labor law, covering:
Contracts are issued in English, which is widely used in Cypriot business practice. The contract reflects the specific role, compensation, and any applicable collective agreement terms — and is shared with the employee digitally for e-signing.
Every new hire in Cyprus must be registered with the Social Insurance Services before or at the start of employment.
WorkMotion handles this registration on behalf of the employer, including obtaining the required employer and employee reference numbers with the Social Insurance Services and the Tax Department.
Since 2025, employers have been required to submit the essential terms of employment through Cyprus’s ERGANI electronic system.
WorkMotion manages this filing as part of standard onboarding.
WorkMotion configures payroll in euros, the statutory currency for employment in Cyprus, and calculates all mandatory deductions and employer contributions.
In 2026, employer contributions total approximately 15.4% of gross salary, covering:
Employee deductions include Social Insurance (8.8%) and GESY (2.65%).
WorkMotion applies the correct insurable earnings caps and PAYE withholding rates, and files monthly declarations with the Social Insurance Services and the Tax Department through the TAXISnet system.
WorkMotion enrolls employees in Cyprus’s General Healthcare System (GESY), which provides universal healthcare access for residents.
While a 13th-month salary is not a statutory requirement in Cyprus, it is common practice in the private sector.
WorkMotion advises on market norms and can structure compensation packages accordingly.
Statutory leave entitlements, sick pay, maternity and paternity leave, and any applicable collective agreement benefits are built into the employment setup from day one.
Each month, WorkMotion runs payroll, calculates net salary after all statutory deductions, and pays the employee directly in euros.
Employer contributions are remitted to the relevant Cypriot authorities by the required deadlines.
Payslips are issued in a format compliant with Cyprus employment law.
Cyprus employment law is actively evolving.
The 2025 labor reform cycle introduced mandatory electronic time-tracking obligations, updated workplace harassment rules under Law 42(I)/2025, and expanded telework regulations.
WorkMotion monitors legislative changes and updates employment terms, contribution rates, and statutory benefit entitlements as regulations shift — so your team doesn’t need to track Cypriot labor law updates independently.
For most companies hiring one to a handful of people in Cyprus, EOR is the faster and lower-risk path.
Here’s how the two options compare:
| Factor | WorkMotion EOR | Setting up a Cyprus entity |
|---|---|---|
| Setup cost | No entity setup cost — WorkMotion’s service fee covers employment infrastructure | Estimated several thousand euros in legal, registration, and accounting fees |
| Time to first hire | Days from signed contract to payroll enrollment | Estimated 4–8 weeks for company registration and employer setup |
| Ongoing legal exposure | WorkMotion holds legal employer responsibility and monitors compliance | Your entity carries full legal employer liability — requires ongoing local legal and HR support |
| Ongoing admin burden | Single monthly invoice; WorkMotion handles payroll, filings, and contributions | Monthly payroll filings, TAXISnet submissions, ERGANI updates, GESY registration, and annual tax compliance |
| Exit flexibility | Offboard an employee without winding down a legal entity | Closing or maintaining a dormant entity carries its own administrative and cost burden |
EOR fits companies that need to hire in Cyprus quickly, want to test the market before committing to a permanent structure, or are managing a small number of hires across multiple countries.
Entity setup becomes worth evaluating when you’re building a substantial, long-term team in Cyprus and want direct employer branding and full operational control.
Cyprus has a modern, EU-aligned labor framework, but several compliance requirements catch foreign employers off guard, particularly those accustomed to hiring in larger European markets.
Since 2025, all employers in Cyprus must submit the essential terms of employment for every employee through the ERGANI electronic system.
This is a mandatory digital registration — not just a formality.
Companies without a local entity or payroll provider often miss this obligation entirely, creating compliance exposure from day one.
WorkMotion handles ERGANI registration as part of standard onboarding.
Employer payroll obligations in Cyprus are not a single contribution rate.
They span five separate funds:
Each has their own rate, cap, and filing deadline.
Foreign employers who calculate only the headline Social Insurance rate consistently underestimate the true employer cost. WorkMotion calculates and remits all five contributions correctly and provides a full cost breakdown before you commit to a hire.
A 13th-month salary is not legally required in Cyprus — but it is standard practice in the private sector, particularly in professional and technical roles.
Candidates in Cyprus often expect it as part of their total compensation. Businesses that don’t account for it risk losing offers to competitors who do.
WorkMotion advises on local compensation norms so your offer is competitive from the start.
Cyprus introduced formal telework regulations for the private sector in 2023, and the framework continues to develop.
A Ministerial Decree on employer reimbursement costs for remote work equipment and connectivity is still pending as of 2026.
For companies hiring remote employees in Cyprus — which is a common use case — this creates an evolving compliance obligation that requires monitoring.
WorkMotion tracks these regulatory developments and updates employment terms accordingly.
Termination in Cyprus is governed by the Termination of Employment Law and requires careful attention to notice periods, which scale with employee seniority.
Errors in calculating notice, or failing to serve notice in writing, can expose the employer to legal challenge.
WorkMotion manages the offboarding process in line with current Cypriot law, including notice calculation, final pay, and any applicable redundancy fund obligations.
Cyprus has a highly educated, multilingual workforce, over half of whom hold tertiary qualifications, with strong representation in technology and professional services.
SMEs based in Germany or the Netherlands that can’t fill senior developer or engineering roles domestically increasingly look to Cyprus as a talent source.
WorkMotion handles the employment infrastructure so the hiring manager can focus on the candidate, not the compliance setup.
Post-Brexit, UK companies expanding into EU markets often use Cyprus as an entry point. It’s an EU member state with an English-speaking business culture and a common law legal tradition.
A B2B SaaS company hiring its first EU-based customer success or sales hire in Cyprus can be onboarded through WorkMotion in days, without the company needing to register a Cypriot entity or navigate local payroll from scratch.
Cyprus is an attractive first hire location for US-based companies entering the European market — low corporate tax rates, EU market access, and a strong English-language talent pool.
WorkMotion’s EOR in Cyprus provides US companies with a compliant employment structure without the complexity of setting up a European subsidiary or the legal exposure of misclassifying a Cypriot employee as a contractor.
You’ve found the right person in Cyprus. Don’t let the compliance setup, PAYE withholding, and a locally compliant contract slow you down!
WorkMotion handles all of it through its partner network in Cyprus, so your new hire can be onboarded in days rather than weeks, with every statutory obligation covered from day one.
If you want to estimate the full employment cost before committing, including employer contributions and the WorkMotion service fee, use our Employment Cost Calculator to get an estimated country-specific breakdown.
When you’re ready to move forward, Book a Demo and our team will walk you through exactly how hiring in Cyprus works.
WorkMotion hires employees in Cyprus through its partner network rather than a directly owned entity. This means your hire is still covered by a locally compliant employment contract, full statutory contributions, and ongoing compliance monitoring. The partner structure does not reduce the compliance coverage your company receives. WorkMotion manages the full employment lifecycle, including ERGANI registration, Social Insurance enrollment, GESY contributions, and PAYE withholding, through established in-country partners.
With WorkMotion’s EOR in Cyprus, a new hire can typically be onboarded within days of a signed contract – not the weeks or months required to register a local entity. The onboarding process covers contract generation, Social Insurance registration, ERGANI submission, and payroll setup in euros. The exact timeline depends on how quickly the employee provides required documentation, but the compliance infrastructure is handled by WorkMotion from the start.
Employer payroll obligations in Cyprus span five separate funds, not a single contribution rate. Finance teams that calculate only the headline Social Insurance rate will consistently underestimate the true cost of employment.
ERGANI is Cyprus’s mandatory electronic employment registration system, introduced as a requirement for all employers in 2025. Every employer must submit the essential terms of employment for each new hire through ERGANI before or at the start of employment – failure to do so creates compliance exposure from day one. WorkMotion handles ERGANI registration as part of standard onboarding in Cyprus, so your company meets this obligation without needing to interact directly with the system.
Termination in Cyprus is governed by the Termination of Employment Law, which ties notice periods directly to employee seniority – the longer the tenure, the longer the required notice. Notice must be served in writing, and errors in calculating the correct notice period or failing to follow the proper process can expose the employer to legal challenge. WorkMotion manages the full offboarding process in line with current Cypriot law, including notice calculation, final pay, and any applicable Redundancy Fund obligations.
Entdecke, wie du mit WorkMotion überall Mitarbeiter einstellen, Vorschriften einhalten und globale Teams mühelos verwalten kannst
Von folgenden Personen geschätzt
![idWjC-9cC6_logos 1 [Vectorized]](https://workmotion.com/wp-content/uploads/2026/02/idWjC-9cC6_logos-1-Vectorized.svg)
