EOR Service in Republic of Cyprus

Hire, Onboard and Pay Employees in Republic of Cyprus Quickly and Efficiently

Hiring in Republic of Cyprus at a glance

CURRENCY
Euro (€, EUR)
working hours
40 hours a week
public/bank holidays
15 days
capital
Nicosia
language
Greek, Turkish
date format
DD-MM-YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Euro (€, EUR)
working hours
40 hours a week
public/bank holidays
15 days
capital
Nicosia
language
Greek, Turkish
date format
DD-MM-YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
$28 billion

Employer of Record in Republic of Cyprus

Cyprus, with its thriving economy and diverse talent pool, has become an attractive destination for businesses seeking to expand their operations and tap into a new workforce. Acquiring the services of an Employer of Record (EOR) in Cyprus can be a game-changer for employers looking to navigate the complexities of local employment laws, compliance, and talent acquisition.

Why use Republic of Cyprus EOR?

Cyprus’ labor laws are mainly informed by laws passed by the Parliament and collective bargaining agreements. These mix of laws can be daunting for any foreign employer. For example, there is no weekly minimum wage in Cyprus like in many countries but a monthly minimum at €940.00 per month.  Moreover, Cyprus has strong labor unions who lobby for worker rights, resulting in a changing labor landscape.

EORs in Cyprus have in-depth knowledge of these labor laws, ensuring compliance at all times. By relieving you from these duties and expediting hiring, you can focus solely on onboarding and managing the everyday tasks for your employee.

Employing a local workforce comes with inherent risks, including language barriers, cultural differences, and unfamiliarity with local practices. Their expertise in local practices, customs, and language ensures effective communication and a smooth employer-employee relationship.

EOR Costs in Republic of Cyprus

EORs typically charge a transparent fee structure that covers payroll processing, benefits administration, tax compliance, and other related services. EORs typically offer two common pricing models: fixed pricing and percentage-based pricing. The fixed pricing model allows EORs to charge a fixed fee for their services. Businesses prefer this pricing model with a stable workforce. The pricing model offers a clear understanding of the business’ ongoing expenses. This way, they can easily budget for their hiring budgets in Cyprus.

Some EORs in Cyprus may employ a percentage-based pricing model - a percentage of the employee's total compensation is charged as a fee. This pricing model benefits employers who want flexibility in fee structures that align with the employee's salary. 

Employers must discuss and negotiate the pricing structure to best suit their hiring budgets. Factors such as the number of employees, the complexity of employment contracts, and the level of support desired should be considered when evaluating an EOR's cost.

Why work in Republic of Cyprus?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

Misclassification of employees refers to the improper classification of workers by their employers. It occurs when an employer labels a worker as an independent contractor, thus excluding them from certain employment laws and benefits, even if the nature of their employment relationship resembles that of a full-time employee.

Engaging a PEO/EOR in the Republic of Cyprus helps mitigate the risks associated with misclassification. These reputable providers assist in creating compliant employment contracts, ensuring adherence to labor laws, accurate payroll processing, and access to comprehensive benefits. By partnering with a PEO/EOR, employers can navigate the complexities of worker classification and maintain compliance with the regulations in the Republic of Cyprus.

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Employing in Republic of Cyprus

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

INCOME TAX

Income Range Rate
Up to 19,500.00 EUR 0.00%
19,500.00 EUR – 28,000.00 EUR 20.00%
28,000.00 EUR – 36,300.00 EUR 25.00%
36,300.00 EUR – 60,000.00 EUR 30.00%
60,000.00 EUR and over 35.00%

Other Tax And Social Security contribution

Employer Payroll Contributions

Contribution Rate Maximum Annual Earnings
Social Insurance 8.30% 60,060 EUR
Social Cohesion Fund 2.00% -
Severance Fund 1.20% 60,060 EUR
Training and Development 0.50% 60,060 EUR
National Health System 2.90% -
Holiday Fund 8.00% (if not exempt) -
Total Employment Cost 22.90% -

Employee Payroll Contributions

Contribution Rate
Social Insurance
8.30%
National Health System (ESY) 2.65%
Total Employee Cost 10.95%

Separation

Employment Termination and Severance

Termination Process:

Employers in Cyprus have the authority to terminate employment based on lawful justified reasons, which include factors such as unsatisfactory performance, redundancy, force majeure, termination at the end of a fixed period, commission of a serious disciplinary or criminal offense, indecent behavior, or repeated violation of employment rules.

When it comes to fixed-term contracts, employers have the flexibility to terminate them for reasons related to business needs, personal reasons, or instances of worker misconduct.

Termination requires the employer to provide notice to the employee and provide a written explanation for the decision. In cases of misconduct, it is customary to issue a warning to the employee and allow them an opportunity to explain their actions.

Severance pay is provided, and all statutory obligations, including compensating for paid time off, are fulfilled as part of the termination process. These measures ensure that employees are appropriately compensated and that their rights are respected when employment comes to an end.

Notice Period

Length of Employment Notice Period
26-51 weeks 1 week
52-103 weeks 2 weeks
104-155 weeks 4 weeks
156-207 weeks 5 weeks
208-259 weeks 6 weeks
260-311 weeks 7 weeks
312 weeks or more 8 weeks

employee and allow them an opportunity to explain their actions.

Severance pay is provided, and all statutory obligations, including compensating for paid time off, are fulfilled as part of the termination process. These measures ensure that employees are appropriately compensated and that their rights are respected when employment comes to an end.

Notice Period

Severance Pay

Length of Employment Severance Pay
Up to 4 years 2 weeks' severance pay per year of service
5-10 years 2.5 weeks' wages per year of service
11-15 years 3 weeks' wages per year of service
16-20 years 3.5 weeks' wages per year of service
Over 20 years 4 weeks' wages per year of service

Probation Periods

The length of the probationary period in Cyprus is determined by the nature of the role and is specified in the employment agreement. Typically, probation periods can range from six months to two years. The specific duration of the probation period will be outlined in the employment agreement, providing clarity and expectations for both the employer and the employee.

Start Hiring in Republic of Cyprus today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection laws. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimise all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. They do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in Republic of Cyprus

Expand your team effortlessly in the captivating Republic of Cyprus. Gloroots' global Employer of Record (EoR) service takes care of compliance, payroll, tax, and benefits management, freeing you to focus on your employees and business growth. With Gloroots as your partner, navigate the intricacies of the Cypriot labor market seamlessly and empower your business to thrive.

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Experience Seamless Hiring in Republic of Cyprus?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Republic of Cyprus.

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