Cyprus economic growth will progressively recover in 2021-2022
Low-tax environment, large fluent English-speaking population and skilled labor force are Cyprus’ main attractions according to The Economist. Their Intelligence Unit says that Cypriot policy in 2021 has been focusing on stabilizing the economy after the economic fallout from the COVID-19 crisis. From 2022, the country will restore fiscal discipline and implement structural reforms and privatization, as agreed with the EU and the IMF. The Financial Mirror predicts that Cyprus economic growth will recover gradually in 2022, driven mainly by domestic demand. Cyprus’ economic activity contracted sharply in 2020 due to the pandemic, but a 3.1% GDP rebound is expected from 2021, according to the EU Commission spring forecast. Cyprus was ranking #54 in the World Bank’s 2019 Ease of Doing Business index (Sources: Cyprusprofile, World Bank, The Economist and The Financial Mirror).
A trusted professional employment organization with in-depth knowledge of the Cypriot market, XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Nicosia or any other city in Cyprus, regardless of the size of your organisation or your industry.
Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.
Minimum wage depends on the type of work/industry.
Working hours in Cyprus are 8 hours a day, and 40 hours a week.
Annual leave will depend on the type and industry. For workers who have already worked for 48 weeks and working 5 days per week, the minimum annual leave is 20 working days. For workers who work 6 days per week, the minimum annual leave is 24 working days.
Sick leave and pay are not subjected to rules.
Maternity allowance is paid to natural mothers for a period of 18 weeks starting between the ninth and second weeks before the week of the expected birth. During maternity leave the employee receives 72% of their salary and it’s paid by the government. Maternity leave is extended to 22 weeks in case of twins, and 26 weeks when there are at least 3 births.
Under the condition that the couple is married, paternity leave is paid to natural fathers for a period of 2 consecutive weeks between the week of confinement and the following 16 weeks or between the week of confinement and the termination of maternity leave for the case of multiple births.
Article 9 of the Termination of Employment Law 24/1967, which applies to all dismissals, provides for a minimum period of written notice for employee(s) to be dismissed on the basis of the length of service:
Probation period in Cyprus will depend on the employment agreement.
The standard VAT rate is 19%.
If you want to benefit from XML employment expertise in Cyprus, we invite you to fill the form below and we’ll get back to you shortly.
XML International, one of the best workforce solutions and employer of record services providers for Cyprus, supports the set-up and the management of your international workforce for all your activities in Cyprus. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Cyprus. We give you all the keys to handle you staff in Nicosia or any city in Cyprus. XML’s knowledge of Cypriot labour laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Cyprus, navigate all the local complexities and avoid pitfalls.
Among our top priorities, compliance with the Cypriot employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Cyprus is aligned with the Cypriot tax and social security rules and the latest immigration processes, including visas and work permits.
Here is the list of our core services supporting your activities in Cyprus.
Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion into Cyprus or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Cypriot market.
They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Cyprus without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Cyprus.
XML provides you with everything you need to start doing business in Cyprus or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Cyprus in a cost-effective way.
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XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.