Implementation of National Minimum Wage in Cyprus

Beginning on January 1, 2023, the National Minimum Wage in Cyprus will be in effect. The relevant Decree issued by the Council of Ministers stipulates a gross starting salary of €855 per month for the first six months of employment. After six months of continuous employment with the same employer, either before or after the implementation of the Decree, the gross monthly salary should be increased to €940.

Exceptions

Certain employee categories are exempt. These categories include agricultural workers, domestic workers, and shipping personnel. In addition, those who receive preferential treatment via contract, custom, practice, or other decree are also exempt.

Deductions for Food and Housing

If the employer offers food and/or housing in accordance with an agreement between the two parties (employer and employee), the employer may deduct up to 15% and 10%, respectively, for food and housing. It should be noted, however, that this is only permissible if the employer and employee have reached an agreement.

Training and Education Exemptions

Individuals receiving training or education to obtain a degree or professional qualification are also exempt from the minimum wage. Additionally, the minimum wage can be applied with a 25% reduction for seasonal workers under the age of 18, whose seasonal employment is limited to a maximum of two months.

Pay Stub Requirements

Employers are required to provide a paystub monthly/weekly. The employer (or, in the case of a corporation, its directors) is personally liable for noncompliance with this legal requirement.

Modification to the maximum allowable earnings for 2023

The maximum insurable earnings for 2023 have been increased to €1.155 per week, €5.005 per month, and €60,060 per year, effective 1 January 2023. Maximum insurable earnings are used to calculate contributions to the Social Insurance, Redundancy, Training and Development Funds, while actual earnings are used to calculate contributions to the Social Cohesion Fund.