Payroll and benefits in Cyprus

Many statutory benefits in Cyprus are provided through the Social Insurance Scheme, which is funded by contributions from both employers and employees. Other benefits, such as annual leave, must be provided directly by employers. The Social Insurance Scheme covers a range of benefits, including pensions, unemployment benefits, sickness benefits, and more.

National health insurance in Cyprus

The General Healthcare System (GeSY) is Cyprus’s national health insurance scheme, providing universal healthcare coverage to all residents. Funded through contributions from employees, employers, the self-employed, pensioners, and the state, GeSY ensures access to a wide range of medical services. As of 2024, contribution rates are 2.65% for employees and 2.90% for employers.​

Pensions in Cyprus

Both employers and employees in Cyprus contribute to the Social Insurance Fund, which finances various benefits, including pensions. The old-age pension provides employees with an income after they retire, subject to meeting the required contribution conditions. This is a key component of social insurance in Cyprus.

Unemployment insurance in Cyprus

The social insurance system in Cyprus also covers unemployment benefits. These are funded by contributions from employers and employees and entitle eligible employees to benefits for up to 156 days per unemployment period. To qualify, individuals must be registered with the Public Employment Service and sign the unemployment register at their district social insurance office.

Occupational accident insurance in Cyprus

Employees in Cyprus are protected under the Social Insurance Scheme for work-related accidents and occupational diseases. If an employee is injured at work or develops an occupational disease, they are entitled to benefits such as injury benefits, disability benefits, and death benefits. Employers are also required to have Employers’ Liability Insurance, which covers compensation to employees for work-related injuries or diseases.​

Family allowances in Cyprus

Cyprus provides family allowances to support households with dependent children. The primary benefit is the Child Benefit, which is means-tested and varies based on the number of children and the family’s annual income. In 2024, the benefit amounts were increased by 5% and adjusted for the cost-of-living allowance (CoLA), with changes applied retroactively from January 1, 2024.

Annual leave in Cyprus

Employees in Cyprus are entitled to a minimum of four weeks of paid annual leave per year. For employees working a five-day week, this equates to 20 working days. For a six-day week, 24 working days. Absences due to maternity, paternity, parental leave, or sickness are considered as working periods for the calculation of annual leave.

Maternity, paternity, and parental leave in Cyprus

Employees in Cyprus are entitled to different types of leave related to the birth or adoption of a child. During this leave, they can receive an allowance through the Social Insurance Fund. Both parents are also entitled to up to 18 weeks of parental leave for each child, which can be taken up until the child turns 15 years old. Employees on parental leave can receive benefits to compensate for loss of income for up to 14 weeks, depending on how many children they have.

Sickness benefit in Cyprus

Employees who are temporarily unable to work due to illness are entitled to a sickness benefit from the Social Insurance Fund. The benefit is payable after the third day of absence and can be received for up to 156 days per illness period.

Funeral grants in Cyprus

In the event of the death of an insured person, a funeral grant is payable to the person who has undertaken the funeral expenses. This benefit is provided by the Social Insurance Fund and aims to assist with the costs associated with funeral services.