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POPULATION

1.4m

CURRENCY

€ (EUR)

CAPITAL CITY

Nicosia

Overview

Cyprus, an island country in the Eastern Mediterranean, is known for its rich history, diverse culture, and stunning beaches. With its strategic location at the crossroads of Europe, Asia, and Africa, Cyprus has been a center of trade and cultural exchange for centuries.

The country's economy is diversified, with key sectors including tourism, financial services, and shipping. Cyprus is a popular tourist destination, attracting visitors from around the world with its beautiful beaches, ancient ruins, and vibrant nightlife.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Last updated on March, 22nd, 2023

Employment Contracts

Employment contracts in Cyprus are either indefinite-term or fixed-term. The duration of a fixed-term contract cannot exceed 30 months, and a series of fixed-term contracts may not have a combined term of more than 30 months. If the employee remains employed with the employer beyond the 30-month limit, the contract automatically converts to an indefinite contract. An employment contract does not have to be in writing but it is advisable. The employer must disclose some information to the employee in writing within 30 days of the start of employment if it is not stated in a written contract.

Working Hours

The standard workweek in Cyprus is 40 hours over five days, although a six-day week is possible. Employees may not work more than 48 hours in one week, averaged over four months, and the employee’s consent is required for work beyond 40 hours. The rates of pay for overtime and other non-standard working arrangements are normally set by a collective bargaining agreement, or if no collective bargaining agreement applies, the employer and employee usually negotiate the rate.

Public Holidays

In Cyprus, the public holidays are:

  • New Year’s Day

  • Epiphany Ash Monday (Kathara Deftera)

  • Green Monday

  • Greek Independence Day

  • Greek Cypriot Day (EOKA Day)

  • Orthodox Good Friday

  • Orthodox Easter Monday

  • Labor Day

  • Orthodox Whit Monday (Katalysmos)

  • Assumption Day

  • Cyprus Independence Day

  • Ochi Day (Greek national day)

  • Roman Catholic Christmas

  • Boxing Day

Employment Termination/Severance

Employers in Cyprus may terminate employees with notice for a legitimate reason. The main legally recognized reasons for termination with notice are unsatisfactory performance, redundancy, the expiration of a fixed-term contract or for reasons outside of the employer’s control. The notice must be in writing, with the notice period depending on the employee’s length of service. The employer also has the option of making the termination effective immediately and paying the employee the salary they would be paid during the notice period. Terminated employees in Cyprus must be paid severance pay as soon as possible after termination. Severance pay is based on length of service.

Compensation

Cyprus has no general minimum wage, but certain professions do have one. Bonuses are paid at the employer’s discretion. Many employers pay a 13th month of salary as a bonus, usually in December. Employers are also required to give employees holiday pay, which is paid either to the employees directly or from a Central Holiday Fund to which employers contribute.

Population 1.4m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

67.1%

Urban Population

91.2%

Internet access

96.1%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Last updated on March, 22nd, 2023

Vacation Leave

Employees receive four weeks of paid annual leave in Cyprus: 20 days per year for employees who work five days per week, or 24 days for those who work six days per week. A collective bargaining agreement or employment contract may provide for more leave time. Employees become eligible for their full leave after 48 weeks of employment. Employees must request leave, and the employer may deny the request because of the needs of the business.

Sick Leave

The amount of an employee’s sick leave in Cyprus, as well as sick pay, are usually set by collective bargaining agreement or the employment contract. If the employee does not receive sick pay under the terms of a collective bargaining agreement or their individual contract, they may qualify for a social security benefit in the event of an illness lasting three days or more, up to a maximum of 156 days. Employees are also allowed five days of unpaid leave per year to care for a family member who is ill or injured.

Maternity/Paternity Leave

An expectant mother is entitled to 18 weeks of maternity leave in Cyprus after providing her employer with a medical certification of her pregnancy. She must take a minimum of 11 weeks, starting at the latest two weeks before the expected week of the birth, and at least eight weeks must be taken after the birth. If she gives birth to more than one child, she is entitled to four additional weeks of maternity leave for each additional child. Fathers receive two weeks of paternity leave, which can be taken anytime during the 16 weeks following the child’s birth. The father must provide two weeks of advance notice in writing. Employers have no obligation to pay employees during maternity or paternity leave, but both parents can receive a social security benefit during their leave if they meet the eligibility requirements.

Health Insurance Benefits

Cyprus has universal health care. Cyprus also has many private clinics and hospitals. Private medical insurance is available, and many residents of Cyprus purchase it.

Unemployment 5.6%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

67.8%

Labor force population share

45.9%

Female share of labor force

81%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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