Cyprus PEO Services

Employment Information

Cyprus has relatively lower taxes than other countries in the European Union and provides lenient fiscal policies for expats looking to relocate to the country. The island follows similar employment standards and legislation to other European countries.

Employee Sick Leave

• Most employers won’t demand a sick note for any absence that’s less than three days
• Generally, no payments are made during the first three days of an employee’s sick leave
• After the three day period, a sick note must be provided for an employee to receive sick leave payments from the Ministry of Labour, Welfare and Social Insurance
• Employers are lawfully able to terminate the employment of a worker who has been absent for more than 26 consecutive weeks, however most employers will connect their staff with doctors of their choice in order to properly assess their medical condition

Paid Vacation

When it comes to paid vacation in Cyprus, employees who have worked 48 weeks within a year are entitled to a minimum of 4 weeks’ paid leave. Workers who complete 5 days per week are usually entitled to 20 days paid leave, and workers who complete 6 days a week will usually get 24 days of paid leave.

Parental Leave

New mothers are entitled to 18 consecutive weeks of maternity leave, 11 of these weeks are compulsory for the employer and the employee. These weeks should take place two weeks before the expected delivery date, the week of delivery and eight weeks preceding it. The Social Insurance Law ensures that women undergoing maternity leave receive a maternity allowance, and grants can also be accessed.

An employee whose partner has given birth, adopted, or had a child through a surrogate is also entitled to paternity leave for two consecutive weeks starting from the week of birth or adoption and ending after a period of 16 weeks. Employees are protected from dismissal during this period, but they must provide two weeks of notice to the employer before taking their leave.

Termination of Employment

Any employer, who intends to terminate the employment contract of their employee, after 26 weeks, must provide a minimum notice period depending on the length of the worker’s employment period to date.

• 26 to 51 weeks = 1 week notice
• 52 to 103 weeks = 2 weeks notice
• 104 to 155 weeks = 4 weeks notice
• 156 to 207 weeks = 5 weeks notice
• 208 to 259 weeks = 6 weeks notice
• 260 to 311 weeks = 7 weeks notice
• 312 weeks and over = 8 weeks notice

If an employee is in a probationary period, or their employment period is less than 26 weeks, employers are not required to give any notice.

Employees also have an obligation to provide notice if they wish to terminate their employment. The conditions of this may vary depending on the nature of the employment contract, but generally will fall into the following:

• 26 to 51 weeks = 1 week notice
• 52 to 103 weeks = 2 weeks notice
• 104 weeks and over = 4 weeks notice

Cultural Information

The primary language of Cyprus is Greek, however an estimated 95% of the population can speak English fluently. Road signs in Cyprus are usually displayed in both Greek and English.

Cyprus is a primarily Christian country, with this religious group making up around 78% of the total Cypriot population.

As a beautiful island in the Mediterranean, it’s no surprise that tourism is one of Cyprus’s primary industries, along with food and beverages, chemicals, metal products, and more.

Expanding into the Cypriot market

The process of expanding into Cyprus can be simplified further with the use of a Cyprus PEO like Procorre Global. Our PEO service can also be used to sample the Cypriot market without the need of setting up a permanent establishment in country.

Impacts of COVID-19

Working in Cyprus has experienced similar impacts from COVID-19 as other developed countries, with the majority of employers resorting to remote working and hybrid working patterns where possible.