Guide
What an employee costs an employer in Cyprus (2026)
Updated
Cyprus employer contributions are spread across five funds. Added together they put roughly 15% on top of salary at typical pay levels, and the share falls as pay rises past the insurable earnings ceiling.
What the employer pays
| Fund | Rate | Charged on |
|---|---|---|
| Social Insurance Fund | 8.8% | Earnings up to €68,904 a year |
| Redundancy Fund | 1.2% | Earnings up to €68,904 a year |
| Human Resources Development Fund | 0.5% | Earnings up to €68,904 a year |
| Social Cohesion Fund | 2% | Total earnings, no maximum |
| General Healthcare System | 2.90% | Earnings up to €180,000 a year |
Rates from the Social Insurance Services (Contributions), ceilings from the published maximum insurable earnings for 2026 (Basic Insurable Earnings 1981-2026).
The Central Holiday Fund
There is a sixth contribution, to the Central Holiday Fund, which the employer pays in full at a rate that tracks the employee's annual leave entitlement. An employer that grants leave directly may obtain an exemption from paying into the fund, and many do, which is why the calculator on this page excludes it. If you hold no exemption, add it to the figures shown.
Costs beyond the contribution rates
- The statutory minimum wage. Full-time employees must receive at least €1,000 gross a month, or €900 gross for the first six months of continuous employment with the same employer.
- A thirteenth salary, common in Cyprus contracts and treated as ordinary earnings for contributions and tax when paid.
- Provident fund contributions, where the employer runs a scheme. There is no auto-enrolment duty of the UK kind, so this is a matter of contract.
- Annual leave, sick pay cover and recruitment, which sit outside the contribution rates entirely and are usually the larger number.
Use the calculator to see employer cost and employee net pay for the same salary side by side.