Cyprus is a small island country in the eastern Mediterranean Sea. It is a major tourist destination in the Mediterranean, and hosts an advanced, high-income economy. Cyprus has free public education and a low rate of income inequality, which makes it an attractive market for skilled talent and global corporations.

Minimum wage in Cyprus varies by industries and worker classifications, but is an average of €940 per month. In the absence of a specified minimum wage, employers and employees tend to negotiate independently.

The general workweek in Cyprus is between 38 and 40 hours, with a maximum of 48 hours including overtime. Overtime pay is calculated by collective bargaining agreements or stipulated in the employment contract.

Parental Leave

Pregnant employees can receive to 18 weeks of paid leave after giving birth, (which goes up to 22 weeks for twins and 26 weeks for triplets or more). The maternity benefit is paid by the government at around 72% of the employee’s normal salary.

Fathers can take 2 weeks of paternity leave. Both parents can also take up to 7 weeks of leave each year to care for children below 8 years old.

Sick Leave

Employees in Cyprus are entitled to sick leave. The first 3 days of leave are unpaid (although some employers choose to pay those 3 days), then starting the 4th day employees can receive benefits from the Social Insurance Fund for up to 156 days.

Paid Leave

Employees in Cyprus have 13 public holidays off work, and also receive 20 days of paid time off each year (after working 48 weeks at the same employer). While employees who work 5 days a week receive 20 days off a year, those who work 6-day weeks receive 24 days off each year.

Process

Employers can terminate a contract if just cause is established — such as negligence, misconduct, fraud, or other work-related offenses. A written explanation and notice is required, and if the termination reason is misconduct, a warning needs to be given so the employee has a chance to explain their actions.

Notice Period

Notice periods for termination in Cyprus depend on how long an employee has worked at their company:

• 26 – 51 weeks = 1 weeks notice
• 52 - 103 weeks = 2 weeks notice
• 104 - 155 weeks = 4 weeks notice
• 156 - 207 weeks = 5 weeks notice
• 208 - 259 weeks = 6 weeks notice
• 260 - 311 weeks = 7 weeks notice
• 312+ weeks = 8 weeks notice

Severance Pay

Severance payments are also calculated based on how long the employee has worked at the company:

• 0-4 years = 2 weeks of pay
• 5-10 years = 2.5 weeks of pay
• 11-15 years = 3 weeks of pay
• 16-20 years = 3.5 weeks of pay
• 20+ years = 4 weeks of pay

While it is not mandatory in Cyprus, most employers offer their employees a 13th month salary in December.