Introducing Mauve in Cyprus

Expand into Cyprus with Employer of Record, Salary Benchmarking, Payroll, and HR solutions

Located in the Eastern Mediterranean, Cyprus offers a strategic gateway to the EU – with a highly educated, multilingual talent pool, a strong services economy, and a business-friendly environment for international companies looking to establish a business presence.

Expanding into Cyprus? Avoid the complexities of navigating in-country employment, tax, and payroll requirements. With an established local office since 1996, Mauve Group provides seamless support through our on-the-ground experts.

Our Employer of Record (EOR), Salary Benchmarking, Payroll and HR employment solutions enable you to hire and manage employees in Cyprus quickly and compliantly.

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Solutions spotlight

How our services work in Cyprus

Whether you're a start-up entering the EU, a growing business establishing regional headquarters, or an international enterprise expanding its Cyprus operations, Mauve helps simplify hiring and workforce management.

Explore some of our global employment solutions.

Employer of Record (EOR)

Through Mauve Group's Employer of Record (EOR) solution in Cyprus, you can hire and manage employees quickly and compliantly without setting up a legal entity.

We act as the employer on your behalf, giving you a faster, simpler route into the market while reducing the administrative complexity of international hiring.

Our local experts manage employment contracts, payroll, employment regulations, and compliance requirements, providing the expertise and support you need to build and manage your workforce in Cyprus with confidence.

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Salary Benchmarking

Leverage data from Mauve's Salary Benchmarking services to understand compensation expectations in Cyprus and develop competitive pay packages that attract and retain top talent.

Consult our specialists for insights into local market salaries, bonuses, benefits, statutory contributions, and other employment costs, helping you make informed hiring decisions.

From technology and financial services to shipping, professional services, tourism, and energy, we help global businesses benchmark roles and develop salary strategies that support successful expansion into Cyprus.

View Salary Benchmarking

Global HR Consultancy

Leverage Mauve’s HR Consultancy Services for expert support throughout the employee lifecycle.

Our HR specialists work closely with your team to develop comprehensive HR handbooks, policies, and processes aligned with Cyprus employment legislation and best practice.

Whether you’re navigating National Minimum Wage requirements, Social Insurance contributions, 13th salary arrangements, or sector-specific employment rules, we provide proactive HR guidance to help you stay compliant and manage your workforce with confidence.

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Global Payroll

Payroll in Cyprus goes beyond processing salaries. Keeping up with PAYE, Social Insurance, GHS contributions, and local reporting requirements can be time-consuming, while errors can create unnecessary compliance risks.

Our local specialists manage the detail for you, staying up to date with Cyprus payroll requirements to ensure accurate and timely processing and ongoing compliance.

From calculating deductions and contributions to meeting local reporting deadlines, our Global Payroll solution handles the day-to-day payroll requirements so you don’t have to.

View Global Payroll

Public holidays

Salary & compensation

Working Hours

Employees can work up to 48 hours a week, including overtime.

Minimum Wage

From January 2026, the statutory minimum wage applicable to most full-time employees in the private sector is:

€979 per month during the first six months of employment.
€1,088 per month after six months of continuous employment with the same employer.

Employee tax

Annual income	Tax rate
Up to EUR 19,500	0%
EUR 19,500 - 28,000	20%
EUR 28,000 - 36,300	25%
EUR 36,300 - 60,000	30%
More than EUR 60,000	35%
Social insurance contribution	8.8%
General health service	2.65%

Bonuses

There are no statutory bonus schemes in Cyprus, but a 13th month salary is customary.

Contracts

Types of annual leave

Annual Leave

Minimum of 20 days' paid holiday for employees who work five days a week, and 24 working days for employees working a six-day week.

Sick Leave

Up to 156 days' paid sick leave.

Parental Leave

Maternity leave: at least 18 weeks' paid leave.
Paternity leave: at least 15 weeks' paid leave.
Parental leave: Employees of either gender who have completed six months or more of continuous employment with the same employer are entitled to parental leave for up to 18 weeks in total on the grounds of childcare or adoption. For an employee who is widowed or a single parent, parental leave is extended to 23 weeks. Parental leave can be taken for a child of up to eight (8) years old, or twelve (12) years old in the case of adoption, or eighteen (18) years in the case of a child with disability.

Termination

Termination Process

Employers in Cyprus can terminate a contract provided they give notice and/or compensation in line with legal requirements.

Dismissal should be a last resort for the employer. The only grounds for termination without notice or compensation is misconduct.

Employees can also give notice of termination in line with their contract terms.

Severance Pay

Employees are entitled to 2-4 weeks' severance pay, depending on their length of service.

Insurance

Under a Mauve Group Employer of Record (EOR) solution, clients, and their international workers benefit from Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance system that links all Mauve entities to two preferred providers.

As part of our global Employer of Record services, this programme ensures that companies expanding globally through our EOR service have access to reliable and compliant insurance coverage for overseas employees.

The insurance provides comprehensive coverage in international locations via a combination of the master policy and jurisdiction-specific local policies where required by law. This ensures full compliance and protection in line with local employment regulations—key to any international Employer of Record solution.

The policies include:

Employer’s Liability and Public Liability – £10,000,000 combined limit.
Professional Indemnity – £5,000,000 limit.
Worker’s Compensation – Limit varies depending on the country of employment.

For detailed information about statutory and recommended EOR insurance coverage in your chosen country, get in touch with Mauve’s global compliance team.

Ready to expand into Cyprus?

Hire locally. Stay compliant. Scale confidently. Our Cyprus experts can help you get started.

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Benefits of global expansion into Cyprus with Mauve Group's Employer of Record, Salary Benchmarking, Payroll, and HR solutions

Expanding into Cyprus successfully requires businesses to understand the local employment landscape and establish the right foundations for global growth. That's where Mauve Group comes in.

We combine global employment expertise with in-country knowledge to help businesses navigate the complexities of hiring, payroll, HR administration, employee management and workforce compliance. Explore the key advantages of working with a local employment partner below.

Local expertise in Cyprus

Gain practical insight into the Cypriot employment market from specialists who understand local workplace practices, workforce expectations, and employer requirements.

Our in-country expertise helps you make informed decisions when developing your Cyprus workforce, from understanding local employment norms and cultural expectations to structuring your approach to hiring and employee management.

Employment law in Cyprus

Cyprus employers must comply with a range of local employment requirements covering areas such as contracts, working hours, statutory leave, minimum wage, Social Insurance contributions, and employee termination.

Mauve's specialists help you understand and apply these requirements in practice, reducing the risk of costly oversights as your workforce grows.

Fast, compliant market entry

Enter the Cyprus market without unnecessary delays or administrative complexity.

Mauve's Employer of Record (EOR) solution enables you to employ local talent without establishing a legal entity, while our wider employment solutions can support salary benchmarking, HR requirements, and immigration needs as your build on your in-country presence.

Aerial view of Latchi, a Cypriot coastal town with a long breakwater, marina docks, sandy shoreline, and green fields stretching inland under a blue sky.

Figuring out expansion into Cyprus?

Talk to us about cross-border expansion to Cyprus

Tell us how you’re planning to expand into Cyprus – who you’re hiring, where you need support, and what you’re looking to navigate locally.

We’ll walk you through employee types, compliance requirements, local payroll delivery, and how Mauve’s global employment solutions could support your team as you grow.

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Mauve Group – trusted partners in EOR and global expansion solutions

Recommendations from our clients

Lisa Oldfield

People & Development Manager,
OE Electrics Ltd.

"One of the standout aspects is their personalised approach. They take the time to understand our requirements and offer tailored solutions..."
See Global HR in action
Lisa Phillips

Finance Director,
The PIE News

"It’s saved time, boosted productivity and morale – and on a company level, it’s saved us costs and ensured compliance. We’ve... been given a secure feeling about everything we’re doing."
See EOR in action
Anna Slattery

Assoc. Dir. of Global Comms & External Affairs, The Hunger Project

"The experience... was seamless, efficient, and professional and [gave us] a valuable resource we continue to use in our annual budgeting process for staff salaries."
See Salary Benchmarking in action

Can I hire employees in Cyprus without setting up a company?

Yes. International businesses can hire employees in Cyprus without establishing their own local legal entity by using an Employer of Record (EOR) service. Mauve Group acts as the employer on your behalf, managing employment contracts, payroll, HR administration, and local employment compliance while you retain day-to-day management of your employees.

An EOR can provide a faster, lower-complexity route into Cyprus for businesses looking to test the market, build a local team, or expand operations without immediately establishing a Cyprus entity.

What is an Employer of Record (EOR) in Cyprus?

What are the requirements for hiring employees in Cyprus?

Employers hiring in Cyprus must comply with requirements covering written employment terms, working hours, annual leave, remuneration, termination provisions, Social Insurance, and other applicable employment regulations.

Additional requirements apply when hiring non-EU nationals. Depending on the employee and employer, this can include residence and employment permits and, for certain companies, registration as a Company of Foreign Interests.

Do employees need a work permit to work in Cyprus?

EU and EEA nationals generally have different employment and registration requirements from third-country nationals. Non-EU employees may require a residence and employment permit, with requirements depending on their employment category and the employer.

Mauve's Global Visa & Immigration services can support businesses with the relevant employment and immigration requirements

Can a foreign company employ someone in Cyprus?

Yes. Foreign companies can employ staff in Cyprus, but they must meet applicable local employment, payroll, Social Insurance, and registration requirements.

For businesses that do not have a Cyprus entity, an Employer of Record (EOR) solution can provide a practical alternative, allowing you to employ local talent while a local employment partner manages the administrative and compliance requirements.

What are the employment costs in Cyprus?

The cost of employing someone in Cyprus extends beyond their gross salary and can include employer Social Insurance contributions, statutory funds, healthcare contributions, annual leave costs, and other employment-related expenses.

Salary expectations also vary by role, sector, seniority, and experience. Mauve's Salary Benchmarking services can help businesses assess local salary expectations and develop competitive compensation packages, while our EOR services can help manage employment administration and statutory requirements.

How do I set up a business in Cyprus?

Setting up a business in Cyprus typically involves choosing an appropriate legal structure, registering the entity, registering for tax, and completing applicable VAT, Social Insurance, and other regulatory registrations.

However, establishing a company is not always necessary to begin hiring in Cyprus. Businesses that want to enter the market or build a local workforce without setting up their own entity can use an Employer of Record solution, providing a more streamlined route to employing talent in Cyprus.