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Verified: main employer charges cited
Mandatory employer contributions in Cyprus
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| Social insurance fund | 8.8% | 5,742 EUR/month |
| Redundancy fund | 1.2% | 5,742 EUR/month |
| Training development fund | 0.5% | 5,742 EUR/month |
| GHS (health) contribution | 2.9% | none stated |
| Social cohesion fund (no cap) | 2.0% | none stated |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 37,000 EUR | 5,698 EUR | 15.4% | 42,698 EUR | $48,248 |
| 74,000 EUR | 10,861 EUR | 14.7% | 84,861 EUR | $95,891 |
| 148,000 EUR | 14,487 EUR | 9.8% | 162,487 EUR | $183,607 |
The examples use 1×, 2× and 4× Cyprus’s 2025 GDP per person in local currency (36,977 EUR, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 74,000 EUR a year, the employer adds about 10,861 EUR (14.7%) in mandatory contributions, for a total of 84,861 EUR, about $95,891 at the 2025 average exchange rate. Because some contributions stop at a ceiling, the effective rate falls from 15.4% at the lowest example salary to 9.8% at the highest, so senior hires cost proportionally less in on-costs.
What is not included
- Ceiling EUR 68,904 a year (EUR 5,742 a month) for 2026 on all funds except social cohesion. GHS has its own higher ceiling (not modelled). Holiday fund 8% applies only if the employer is not exempt (most are), so it is excluded.
How to budget a hire in Cyprus
- Start from the gross salary you plan to offer in EUR.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Cyprus (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Cyprus with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Cyprus, other taxes, last reviewed 04 August 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Cyprus?
On a salary of 74,000 EUR, mandatory employer contributions add about 14.7%, for a total of roughly 84,861 EUR a year before benefits (PwC, reviewed 04 August 2026).
What are employer social security contributions in Cyprus?
Social insurance fund 8.8%, Redundancy fund 1.2%, Training development fund 0.5%, GHS (health) contribution 2.9%, Social cohesion fund (no cap) 2.0%.
Is the Cyprus data verified?
Yes: every rate is transcribed from PwC Worldwide Tax Summaries and dated.