The workforce in Cyprus is characterized by high education and diversity in skills. The labor market has been shaped by the country’s economic situation and different business sectors adjusted their need for employees according to the overall economic situation in the country.
The employment rate in Cyprus improved as soon as the country experienced an economic recovery. Wages are differentiated according to educational skills and there is a slight gap between salaries in the public and private sectors. Our experts in company formation in Cyprus can give you more details about this matter.
As a company owner in Cyprus you can hire both local and foreign employees. however, the latter will require a work permit.
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The quality of the Cypriot workforce is high in terms of skills and education. Most of the working population attended some form of tertiary education, and those who do not have university studies have secondary education or have attained certain skills through specialization courses. Many employees are fluent in more than one language and Cyprus also has a large number of foreign workers.
Businessmen interested in company formation in Cyprus should know that female participation in the workforce increased over the years and the overall growth in education skills for both male and female employees lead to the creation of more jobs in sectors like accounting, legal services, consulting, financial services and others. At the same time, Cyprus experienced a decrease in agriculture and manufacturing.
Employment in Cyprus
The Department of Labour belonging to the Ministry of Labour and Social Insurance sets forth the legal requirements for employment in Cyprus. The employment contract between the employer and the employee is the binding document that stipulates the working conditions. It must contain information about the workplace, the job position and attributions, the duration of the contract, wage, duration of paid leave, the notice period for the termination of the agreement and other relevant data.
Special employment provisions can apply for particular occupations like clerks or those that have executive or administrative capacity, miners and quarry workers or those employed in retail trade.
Social security contributions are payable both by the employers and by the employees. An individual’s contribution is calculated according to the monthly wage and it is subject to an annual ceiling.
You can contact our Cypriot company formation experts for information about individual taxation in Cyprus or about the work permit.