Cyprus Employment Guide

Cyprus Employment Guide

Cyprus is an island nation in the Eastern Mediterranean with a population of about 1.2 million. Its economy relies on services, tourism, shipping, and financial sectors. Employment in Cyprus is regulated under the Termination of Employment Law and the Employment Law, which cover working hours, leave entitlements, minimum wage, and termination rules. Employers must make social insurance contributions for employees covering pensions, health, and unemployment benefits. Employment contracts are required for all employees, and foreign nationals may need work permits depending on their nationality.

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Currency

Euro (EUR)

Capital

Nicosia

Official language

Greek and Turkish

Salary Cycle

Monthly

Our Employment Guide in Cyprus

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Maternity Leave Policy

Employees who have completed 180 consecutive days of service with their current employer are entitled to 18 weeks of paid maternity leave. A mandatory two-week period must be taken prior to the expected delivery date. During this leave, employees receive 72% of their regular wages, funded through social security contributions.

With employer consent, this leave may be extended; however, such extensions are unpaid. For example, SailGlobal's international workforce often utilizes this provision for additional bonding time while maintaining job security.

Paternity Leave Entitlements

Similarly qualified employees receive 14 days of paid paternity leave, which must be utilized within 16 weeks following childbirth. The compensation structure mirrors maternity benefits at 72% of wages through social security.

Extensions are possible with employer approval but remain unpaid. This policy supports modern parenting models, as seen in Scandinavian countries where paternal involvement significantly impacts child development.

Parental Leave Provisions

Beyond initial leaves, employees qualify for 8 months of unpaid parental leave. Parents may distribute this period flexibly between themselves after exhausting maternity/paternity leaves. Either parent can utilize this entitlement, promoting gender-neutral caregiving approaches.

Unlike other leaves, this period cannot be extended. Companies like SailGlobal often supplement this with transitional support programs to ease workforce re-entry.

Sick Leave Regulations

Employees may take up to 156 days of paid sick leave annually, with compensation varying by duration:

DurationCompensationPayer
Days 0-3100% of base salaryEmployer
Days 4-15660% of base salarySocial Security

This tiered system balances employee welfare with operational sustainability, similar to models in Germany and Canada where phased compensation reduces absenteeism.

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