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Hire and manage employees in Cyprus

As your Employer of Record (EOR) in Cyprus, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
November 10, 2026
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Quick facts

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Cyprus, an island nation in the Eastern Mediterranean, has a service-oriented economy driven by tourism, financial services, shipping and a fast-growing tech sector. As an EU member with a favorable tax regime and English widely spoken in business, it serves as a regional hub connecting Europe, the Middle East and Africa.

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Employment Contracts

Employment contracts in Cyprus can be fixed-term or indefinite. Employers must give employees written information on the main terms of employment within 7 days of the start date for the most essential terms and within 1 month for the rest. Fixed-term contracts that are repeatedly renewed for a total of more than 30 months are generally treated as indefinite.

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Visa and Relocation

Citizens of the EU, EEA, and Switzerland can work in Cyprus without a permit but must register for a residency certificate (the “Yellow Slip”) with the Civil Registry and Migration Department, generally within four months of arrival. Non-EU nationals need both an entry visa and a separate residence and employment permit before starting work; the employer applies on the employee’s behalf and must first show, via a labour market test, that no suitable Cypriot or EU candidate is available.

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Standard work permits are employer- and role-specific and can be issued for up to four years, with eligibility for long-term residence after five years. Highly qualified professionals may instead apply for the EU Blue Card, which requires a job offer meeting a minimum salary threshold of around €43,632/year (2026). Companies of foreign interest can also use the Business Facilitation Unit for a faster-track process. Note that Cyprus is not yet part of the Schengen Area, so Cypriot visas and permits are valid only within Cyprus itself.

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Probation Period

A probation period is usually 3 to 6 months. By written agreement, it can be extended up to 104 weeks (2 years). During probation, the employer can end the employment without notice and the law on unfair dismissal does not apply.

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Working Hours

The typical working week in Cyprus is 38 to 40 hours over five days, depending on the sector and collective agreements. Including overtime, working time may not exceed an average of 48 hours a week. Overtime pay is usually set by the contract or collective agreement.

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Vacation Days

Employees who work a full year are entitled to at least 20 working days of paid annual leave on a five-day week, or 24 working days on a six-day week.

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Sick Leave

Employees who cannot work due to illness receive sickness benefit from the Social Insurance Services from the 4th day of incapacity, for up to 156 days per period of incapacity, with possible extensions in specific cases. Cypriot law does not require employers to pay salary during sick leave, but many employment contracts and collective agreements provide for it.

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Wages and Salary Payment

From January 1, 2026, the national minimum wage for full-time employees is €1,088 gross per month, or €979 during the first 6 months with the same employer. Wages are usually paid monthly; many employers also pay a 13th salary in December, although it is not required by law.

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Public Holidays

Cyprus observes 14 public holidays, including:

  • January 1: New Year’s Day
  • January 6: Epiphany
  • Green Monday (movable)
  • March 25: Greek Independence Day
  • April 1: Cyprus National Day
  • Orthodox Good Friday, Easter Monday and Easter Tuesday
  • May 1: Labor Day
  • Orthodox Whit Monday (Kataklysmos)
  • August 15: Assumption Day
  • October 1: Cyprus Independence Day
  • October 28: Ochi Day
  • December 25 and 26: Christmas

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Employer Taxes

Employers in Cyprus contribute to the following funds:

  • Social Insurance Fund: 8.8%
  • Redundancy Fund: 1.2%
  • Human Resource Development Fund: 0.5%
  • Social Cohesion Fund: 2% of total gross pay, with no cap
  • General Healthcare System (GESY): 2.9%, on income up to €180,000 a year

The first three are capped at maximum insurable earnings of €68,904 a year in 2026.

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Employee Taxes

Employees contribute:

  • Social Insurance Fund: 8.8%, up to €68,904 a year in 2026
  • GESY: 2.65%, on income up to €180,000 a year

Since the tax reform of January 1, 2026, personal income tax rates are:

  • 0% on income up to €22,000
  • 20% from €22,001 to €32,000
  • 25% from €32,001 to €42,000
  • 30% from €42,001 to €72,000
  • 35% above €72,000

Employees who move to Cyprus may qualify for a 50% or 20% exemption on their employment income.

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Notice Period

After probation, the employer’s minimum notice period depends on the length of employment:

  • 1 week for 26 to 51 weeks of service
  • 2 weeks for 52 to 103 weeks
  • 4 weeks for 104 to 155 weeks
  • 5 weeks for 156 to 207 weeks
  • 6 weeks for 208 to 259 weeks
  • 7 weeks for 260 to 311 weeks
  • 8 weeks for 312 weeks or more

Employees who resign must give 1 to 3 weeks’ notice, depending on their length of service.

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Termination and Severance Pay

After probation, employers can dismiss employees only for a valid reason, such as unsatisfactory performance, redundancy, force majeure or serious misconduct. Employees dismissed without a valid reason are entitled to compensation based on their length of service and salary. Employees made redundant after at least 104 weeks of service receive a redundancy payment from the Redundancy Fund, calculated on their weeks of service.

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Last reviewed: November 2026.

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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

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  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

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We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

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  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Do you provide employment agreements?

Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.

How do employees view their payroll?

Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

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  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

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Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

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  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

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Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

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  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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