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Human Resources

Cyprus possesses a well-trained and versatile labour force. Qualified professional, technical and clerical staff, with wide experience and fluency in English and other languages are available for employment at reasonable remuneration.

Economically active population

According to Eurostat’s Labour Force Survey 2012, Cyprus exhibits an employment rate of 64.6% for the age class 15-64; the rate is among the top 14 EU member states and above the average employment rate of the EU-27 (64.2%).

The employment in the market services sector accounts for the largest percentage of the Cyprus total economic activity (48.0%), while the industry and agriculture account for a percentage of 20.2% and 2.9% respectively.

Notably, Cyprus has the highest employment rate for women of 48.7% for the market services sector.

Labour Relations

Since Cyprus' accession to the European Union, the EU's acquis regarding labour law has been fully adopted and implemented. Cyprus has a strong tradition of social dialogue and free collective bargaining.

Terms and conditions of employment are mainly regulated by the use of collective agreements, or directly between the employee and the employer. Approximately 50% of the labour force belongs to a trade union, whilst collective agreement coverage approximately 55%. Collective agreements regulate employment conditions such as remuneration, working hours, annual leave, provident funds, health and safety issues, etc.

Social Insurance

Every person gainfully occupied in Cyprus, either as an employed person or as a self employed person, is compulsorily insured under the Social Insurance Scheme.

In case of employed persons, the contribution is 20,2% on their insurable earnings and it is divided to contributions paid by the employer, the employee and the State in the proportion of 7,8%, 7,8% and 4,6%, respectively. In case of self employed persons, the contribution is 16,9% on the insurable income of the person concerned. Out of 19,2%, 14,6% is paid by the self employed himself and 4,6% by the State.

In the case of voluntary contributors, the contribution is 17,1% on the earnings amount declared. Out of the 17,1%, 13% is paid by the voluntary contributor himself and 4,1% by the State. Voluntary contributors working abroad in the service of Cypriot employers pay contributions of 15,6% on either the basic insurable earnings or on their normal earnings, as agreed in the respective contract of employment, up to the maximum insurable earnings. An additional contribution of 4,6% is paid by the State.

The social insurance scheme provides for several benefits, such as the maternity allowance, sickness allowance, unemployment allowance, pension, widow’s pension, orphan’s allowance, allowances for industrial accidents and occupational diseases. The new EU Regulations (EC) 883/04 and (EC) 987/09 that coordinate the Social Security Systems between member states, have been put into effect in the Republic of Cyprus as of 01/05/2010.

In addition, employers are also obliged to contribute 1,2% to the Redundancy Fund, 0,5% to the Human Resources Development Fund and 2% to the Social Cohesion Fund.

Labour Legislation

Legislation provides for a minimum wage for a number of occupations/professions, for which bargaining power is non existent and collective agreements do not apply. Specifically, a minimum wage applies for Salepersons, Clerks, Assistant nurses, Assistant child minders, Assistants in childcare, School assistants, Guards, Carers and Cleaners. On the basis of the latest Order which was issued on 01/04/2012, the minimum wage, for the above mention occupations/professions except guards and cleaners, at the time of recruitment is €870 euros, and after six months of continuous employment at the same employer it increases to €924 euros. The minimum hourly wage paid to a guard is €4,90 euros, and after six months of employment the amount is increased to €5,20 euros. Similarly, the minimum hourly wage paid for a cleaner employed in Cyprus amounts to €4,55 euros and after six months of service, this increases to €4,84 euros.

In case of dismissal of employees due to redundancy, employees who have been continuously employed for 104 weeks by the same employer, are protected by the Redundancy Fund. The illegally dismissed employee is entitled to compensation payable by the employer, provided that the employee has been consistently working for 26 weeks.

In the event of insolvency, the Law on Protection of Employees Rights in case of insolvency of the Employer, provides for the payment of wages / salaries and annual leave to employees due from the employer out of a special fund.

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Related Links

Public Employement Service
EURES Cyprus-Living & Working
The European Job Mobility Portal
Cyprus' Human Resources Development Authority
Social Insurance Services
Department of Labour Inspection
Department of Labour

Related Documents

Download the Acrobat fileSocial Insurance in the Republic of Cyprus - General Information.pdf
Download the Acrobat fileEmployment Guide.pdf
Download the Acrobat fileLiving and Working in Cyprus 2011.pdf

Last Update on: 16/07/2018 12:52:36 PM

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