Employment Cost Calculator for Cyprus
Calculate your complete hiring costs for Cyprus employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Insurance Contributions | 8.8% | Insurable earnings (up to a maximum annual amount) |
| General Healthcare System (GHS) | 2.9% | Gross emoluments (up to a maximum annual amount of €180,000) |
| Social Cohesion Fund | 2% | Total earnings (no maximum amount) |
| Redundancy Fund | 1.2% | Insurable earnings (up to a maximum annual amount) |
| Human Resource Development Fund | 0.5% | Total payroll costs |
Filing & Compliance
- Employers must register with the Tax Department and Social Insurance Services upon hiring their first employee.
- PAYE, Social Insurance, and GHS contributions must be remitted monthly by the end of the following month.
- The employer's annual return (Form TD7) should be submitted electronically by July 31 following the tax year of assessment.
Income Tax Brackets
| Income Range (€) | Tax Rate |
|---|---|
| 0 - 19,500 | 0% |
| 19,501 - 28,000 | 20% |
| 28,001 - 36,300 | 25% |
| 36,301 - 60,000 | 30% |
| 60,001+ | 35% |
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Social Insurance | 8.8% | €66,612 (annual) |
| General Health System (GHS) | 2.65% | €180,000 (annual) |
Personal Allowances
- Individuals with annual income below €19,500 are not subject to income tax.
- Employee contributions to social insurance, GHS, provident/pension funds, and life insurance premiums are deductible, subject to limits.
- Charitable contributions to approved charities are deductible.
