--- title: "Cyprus" id: "11690" type: "global-payroll" slug: "cyprus" published_at: "2025-08-02T05:47:20+00:00" modified_at: "2026-10-01T16:30:45+00:00" url: "https://topsourceworldwide.com/global-payroll/cyprus/" markdown_url: "https://topsourceworldwide.com/global-payroll/cyprus.md" taxonomy_continent: - "Europe" --- # Payroll Services in Cyprus Fully managed Cypriot payroll – social insurance up to the 2026 ceiling, GHS contributions, PAYE under the new 2026 tax bands and the monthly declarations in Tax For All, with a named specialist a phone call away. [Get in touch](https://topsourceworldwide.com/contact-us/) TopSource rated 5/5 by our customers - - - - - [Read reviews](#testimonials) ## What Cypriot payroll actually involves Cypriot payroll combines social insurance with three employer-only funds, contributions to the General Healthcare System (GHS, or GeSY) and income tax withheld under PAYE. The 2026 tax reform raised the tax-free threshold and moved every band, and monthly payroll declarations now go through the Tax For All portal. ### A €22,000 tax-free threshold The tax reform in force since 1 January 2026 raised the tax-free threshold from €19,500 to €22,000 and widened every band, so 35% now applies only above €72,000. ### Social insurance capped at €5,742 Employer and employee each pay 8.8% on earnings up to €5,742 a month in 2026. The rate rises to 9.3% in January 2029. ### Three employer-only funds Employers add 1.2% to the Redundancy Fund and 0.5% for training, both capped, and 2% to the Social Cohesion Fund on all earnings. ### GHS up to €180,000 GHS contributions are 2.9% from the employer and 2.65% from the employee, on earnings up to €180,000 a year. ### A new minimum wage The national minimum wage rose to €1,088 a month on 1 January 2026, or €979 during the first six months with an employer. ## Our Partners Globally ## Calculate Your Employee Costs in Cyprus Enter a gross annual salary to see the employer cost of a Cypriot employee in 2026: 8.8% social insurance, 1.2% Redundancy Fund and 0.5% training contributions on earnings up to €68,904 a year, 2% Social Cohesion Fund with no ceiling, and 2.9% GHS on earnings up to €180,000. A 13th salary, where your contracts provide one, is not included. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Cyprus Annually Monthly | | British Pound | Cyprus | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## Know your Cypriot hiring costs before you commit Tell us the role and the salary – we’ll send back the full Cypriot employer cost, social insurance, employer funds and GHS included, within one business day. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## Employer Costs in Cyprus Explained A Cypriot employee costs about 15.4% on top of salary at €3,000 a month, and the share falls as salaries rise because social insurance and two of the employer funds stop at €5,742 a month. Above that ceiling only the 2% Social Cohesion Fund and the 2.9% GHS contribution keep growing, and GHS stops at €180,000 a year. Income tax is withheld from the employee’s pay. Here’s the breakdown. #### Social insurance and the employer funds Employers and employees each pay 8.8% social insurance on earnings up to the 2026 ceiling of €1,325 a week, €5,742 a month or €68,904 a year. The rate rises to 9.3% each from 1 January 2029 and keeps rising every five years after that. Employers also pay 1.2% to the Redundancy Fund and 0.5% to the Human Resource Development fund on the same capped earnings, and 2% to the Social Cohesion Fund on all earnings without a ceiling. Employers without an exemption also pay into the Central Holiday Fund, which then pays employees’ annual leave. Most employers obtain the exemption and pay annual leave directly. Contributions are paid to the Social Insurance Services by the end of the month following the month of pay. #### General Healthcare System contributions The General Healthcare System (GHS, known locally as GeSY) is funded by contributions of 2.9% from employers and 2.65% from employees on emoluments up to €180,000 a year. The employer deducts the employee’s share with income tax and pays both through the monthly payroll declaration in the Tax For All portal, by the end of the following month. GHS applies to bonuses and to a 13th salary where one is paid. A 13th salary is not required by law in Cyprus; it is paid only where a collective agreement or the employment contract provides for it. #### Income tax after the 2026 reform The tax reform passed by Parliament on 22 December 2025 and in force from 1 January 2026 raised the tax-free threshold to €22,000. Income from €22,001 to €32,000 is taxed at 20%, €32,001 to €42,000 at 25%, €42,001 to €72,000 at 30% and anything above €72,000 at 35%. In 2025 the threshold was €19,500 and the 35% rate started above €60,000. Employee social insurance, GHS and provident fund contributions are deductible up to a fifth of chargeable income, and new family deductions of €1,000 for the first child, €1,250 for the second and €1,500 for each further child apply within family income limits. The employer withholds tax under PAYE each month and pays it with the monthly payroll declaration by the end of the following month. #### What a Cypriot employee actually costs For an employee on €3,000 a month, the employer pays €264 of social insurance, €51 to the Redundancy Fund and training fund, €60 to the Social Cohesion Fund and €87 of GHS: €3,462 a month, 15.4% on top of salary. At €8,000 a month the capped contributions stop at €5,742 and the total is €8,994.91, 12.4% on top. At €16,000 a month GHS also stops, at €15,000 a month, and the employer cost falls to 8.5%. The national minimum wage is €1,088 a month from 1 January 2026, or €979 during the first six months with the same employer, and applies pro rata to part-time staff. Some groups, such as domestic workers and seafarers, are outside the national minimum wage. #### Working time, leave and termination Working time is limited to 48 hours a week on average, including overtime. Employees are entitled to at least 20 working days of paid annual leave on a five-day week, or 24 on a six-day week. Sick pay comes from Social Insurance from the fourth day of illness rather than from the employer. Social Insurance also pays maternity allowance for 22 weeks and paternity allowance for 2 weeks, and each parent can take up to 18 weeks of parental leave per child. After 26 weeks of service, an employer must give notice of one week, rising to eight weeks after six years. Redundancy payments for employees with at least 104 weeks of service come from the state Redundancy Fund, financed by the employer’s 1.2% contribution, while compensation for unfair dismissal is paid by the employer. ## Cypriot employer contributions and payroll costs, 2026 | Contribution | Employer | Employee | Applies to | | --- | --- | --- | --- | | Social insurance | 8.8% | 8.8% | Earnings up to €5,742 a month; 9.3% from 2029 | | Redundancy Fund | 1.2% | — | Earnings up to €5,742 a month | | Human Resource Development (training) | 0.5% | — | Earnings up to €5,742 a month | | Social Cohesion Fund | 2% | — | All earnings, no ceiling | | General Healthcare System (GHS) | 2.9% | 2.65% | Earnings up to €180,000 a year | | Central Holiday Fund | Set by the fund | — | Only employers without an exemption | | Income tax (PAYE) | — | 0% to 35% | Withheld monthly; €22,000 tax-free | ### Cypriot income tax bands, 2025 and 2026 | Rate | 2025 taxable income | 2026 taxable income | | --- | --- | --- | | 0% | Up to €19,500 | Up to €22,000 | | 20% | €19,501 to €28,000 | €22,001 to €32,000 | | 25% | €28,001 to €36,300 | €32,001 to €42,000 | | 30% | €36,301 to €60,000 | €42,001 to €72,000 | | 35% | Above €60,000 | Above €72,000 | ### Employer cost of monthly salaries in Cyprus, 2026 | Monthly salary | Social insurance 8.8% | Redundancy and training 1.7% | Social Cohesion 2% | GHS 2.9% | Total monthly cost | On top of salary | | --- | --- | --- | --- | --- | --- | --- | | €3,000 | €264 | €51 | €60 | €87 | €3,462 | 15.4% | | €8,000 | €505.30 | €97.61 | €160 | €232 | €8,994.91 | 12.4% | | €16,000 | €505.30 | €97.61 | €320 | €435 | €17,357.91 | 8.5% | Social insurance, Redundancy Fund and training contributions are capped at €5,742 a month, and GHS at €15,000 a month (€180,000 a year). These are TopSource calculations from the verified 2026 rates. Rates, ceilings and amounts shown are for 2026 and were verified on 1 October 2026 against the Social Insurance Services ceiling announcement, the 2026 tax reform, the 2026 minimum wage decree and published tax sources. This page is general information, not tax or legal advice. [Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/) ## How our Cypriot payroll service works 1. Map your setup We confirm your Social Insurance employer registration and Tax For All access, whether you hold a Central Holiday Fund exemption, and any collective agreement or 13th salary terms in your contracts. 2. Migrate or onboard New employees are registered with Social Insurance and set up with the tax identification number that every monthly declaration needs. Year-to-date pay, tax and leave balances are carried across so nothing is lost at the changeover. 3. Run and review Each period you receive a payroll report for approval before anything is paid: gross to net per employee, social insurance, employer funds, GHS and PAYE withheld, with variances explained. Nothing is paid until you approve it. 4. File and pay We submit the monthly payroll declaration and pay PAYE and GHS through Tax For All, pay social insurance and the employer funds by the end of the following month, and file the annual employer’s return (TD7). 5. Stay current The social insurance ceiling changes every January and the contribution rate rises in 2029. We apply each change as it takes effect and re-verify the figures on this page. ## Why Outsource Your Cyprus Payroll to TopSource TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We run Cypriot payroll in-house and file under your own Social Insurance and tax registrations rather than a bureau’s, so the same team that files your monthly declarations answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions, taxes and fees, and one live Portico view of Cyprus beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified. [Global Payroll](https://topsourceworldwide.com/global-payroll/) [Get Started](https://topsourceworldwide.com/contact-us/) ## Other services Accelerating your growth in Cyprus and beyond #### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment. ### Global Employer of Record (EOR) services With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion. ### Actionable HR Advisory On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking. ### Global entity management Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business. ### Accounting We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction. ## Meet our experts for Cyprus Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way. [Our People](https://topsourceworldwide.com/our-people/) ## Beyond a payroll service **A globalization accelerator** A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth. - [Payroll platform](#) - [Audit](#) - [Intelligence](#) - [Advisory](#) ##### Payroll platform ###### Global payroll simplified Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity. ##### Audit ###### Eliminate barriers to growth Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals. ##### Intelligence ###### Build a data-driven talent strategy Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits. ##### Advisory ###### Expert guidance that turns complexity into clarity. Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion. ## Cypriot payroll FAQs ### What are employer payroll contributions in Cyprus in 2026? Employers pay 8.8% social insurance, 1.2% to the Redundancy Fund and 0.5% for training on earnings up to €5,742 a month, 2% to the Social Cohesion Fund on all earnings and 2.9% GHS on earnings up to €180,000 a year. Employees pay 8.8% social insurance and 2.65% GHS. ### What is the social insurance ceiling in Cyprus for 2026? The maximum insurable earnings for 2026 are €1,325 a week, €5,742 a month or €68,904 a year. Social insurance, Redundancy Fund and training contributions stop at the ceiling, while the Social Cohesion Fund applies to all earnings. ### What are the income tax rates in Cyprus in 2026? Income up to €22,000 is tax-free. Income from €22,001 to €32,000 is taxed at 20%, €32,001 to €42,000 at 25%, €42,001 to €72,000 at 30% and anything above €72,000 at 35%. ### What changed for employees in the 2026 Cyprus tax reform? From 1 January 2026 the tax-free threshold rose from €19,500 to €22,000 and every band was widened, with 35% now starting above €72,000 instead of €60,000. New deductions apply for children, primary residence rent or mortgage interest and energy-saving spending, within family income limits. ### How much are GHS (GeSY) contributions in Cyprus? Employers pay 2.9% and employees 2.65% of emoluments to the General Healthcare System, on income up to €180,000 a year. The employer withholds the employee’s share and pays both through the monthly payroll declaration. ### What is the minimum wage in Cyprus in 2026? The national minimum wage is €1,088 a month from 1 January 2026 for full-time employees with six months of service with the same employer, and €979 before that. It applies pro rata to part-time staff. ### When are payroll taxes and contributions due in Cyprus? PAYE and GHS withheld from salaries are declared and paid through the Tax For All portal by the end of the following month. Social insurance and the employer funds are paid to the Social Insurance Services by the end of the month following the month of pay. ### Is a 13th salary mandatory in Cyprus? No. Cypriot law does not require a 13th salary. It is paid only where a collective agreement or the employment contract provides for it, and when it is paid it carries social insurance, GHS and income tax like other pay. ### How much annual leave do employees get in Cyprus? Employees are entitled to at least 20 working days of paid annual leave on a five-day week, or 24 days on a six-day week. Public holidays, maternity leave and sick leave do not count as annual leave. ### Can a foreign company run payroll in Cyprus without an entity? Registering as an employer with the Social Insurance Services requires a local entity, such as a Cypriot company or a registered branch. Without one, the usual route is an Employer of Record. TopSource can run payroll for your Cypriot entity or employ your team through our Employer of Record service. [Couldn’t find what you were looking for?](/contact-us/) ## Looking at other markets too? We help organizations employ and pay teams in 164 countries. 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krone](https://topsourceworldwide.com/global-payroll/norway/) [Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/) [Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/) [Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/) [Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/) [Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/) [Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/) [Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/) [Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/) [Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/) [Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/) [Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/) [Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/) [Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/) [Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/) [Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/) [Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/) [Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/) [San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/) [Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/) [Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/) [Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/) [Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/) [Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/) [Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/) [Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/) [Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/) [Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/) [US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/) Load more