Employer of Record in Cyprus: 17 Providers Compared (2026)

Employing someone in Cyprus: key facts

Cyprus sets one national minimum wage and five employer contributions that total 15.4% of gross up to a ceiling. Everything below is statutory unless marked as a law-firm or press source.

Minimum wage

One national rate for full-time work, higher after 6 months with the same employer. Part-time pay is pro rata. Domestic workers, agricultural and livestock workers, seafarers on commercial vessels and the hotel industry (under its own decree) are outside it (Harris Kyriakides, checked 2026-10-07).

• Gross, per month. The 2024 rates were unchanged through 2025; no 2025 amending decree was found.
• Before 2023 there was no general minimum wage, only occupation-specific decrees.
• We did not find the 2026 decree (23 December 2025) in the Gazette. The figures come from a law firm, RSM Cyprus and Politis, which agree.

Employer contributions

Employer rates for 2026, from the Department of Social Insurance Services announcement of 2025-12-22 as reproduced by KPMG Cyprus (checked 2026-10-07).

• Total: 12.5% + 2.90% = 15.40% of gross below EUR 68,904. Above it, only Social Cohesion and GESY keep growing with pay.
• GESY rates are from Eurofast and the Ministry of Labour (checked 2026-10-07); the EUR 180,000 cap comes from a law-firm summary, not a government page.
• Not in the 15.4%: the Central Holiday Fund, 8-16% of pay depending on leave entitlement, paid only by employers without an exemption. We did not establish whether an EOR is exempt.
• The total moved from 14.9% in 2021-2023 to 15.4% in 2024, when Social Insurance rose from 8.3% to 8.8% (KPMG Cyprus, checked 2026-10-07). That is a change of 3.4%, so we show no history chart.

Working hours and overtime

• Maximum 48 hours a week on average over a 4-month reference period, overtime included (Organisation of Working Time Law 63(I)/2002) (cylaw.org, checked 2026-10-07).
• The employee may opt out in writing, with records kept.
• Full-time hours come from the sector agreement, contract or custom; we found no statutory 40-hour norm.
• The law sets no overtime premium. Premiums come from collective agreements and contracts; other statutes were not searched.

Annual leave and public holidays

• Annual leave: 20 working days on a 5-day week, 24 on a 6-day week, for an employee who worked at least 48 weeks in the leave year (Annual Holidays with Pay Law 8/1967, art. 5(1)). Longer leave under law, custom or agreement replaces the statutory days (cylaw.org, checked 2026-10-07).
• Public holidays, sick days and maternity, paternity and parental leave do not count as leave days. One period must be at least 9 days.
• Public holidays: we found no statutory private-sector list; the law refers to holidays set by law, custom or contract. The Cyprus Securities and Exchange Commission observes 15 days in 2026 (1 Jan, 6 Jan, 23 Feb, 25 Mar, 1 Apr, 10 Apr, 13 Apr, 1 May, 1 Jun, 15 Aug, 1 Oct, 28 Oct, 24-26 Dec), an indicative list only (cysec.gov.cy, checked 2026-10-07).

Probation

• Probation may last up to 104 weeks. Anything over 26 weeks is valid only if agreed in writing when employment starts (cylaw.org, checked 2026-10-07).
• No notice is needed from either side during or at the end of probation.
• Employment is presumed not to be probationary unless shown otherwise.

Notice and severance

Employer’s notice under the Termination of Employment Law 24/1967, art. 5 (cylaw.org, checked 2026-10-07). Longer notice by contract, agreement or custom prevails; payment in lieu is allowed.

• No general severance on dismissal. Redundancy payment comes from the Redundancy Fund for employees with at least 104 weeks of service with the same employer.
• Formula: weekly pay x 2 weeks per year for the first 4 years, 2.5 for years 5-10, 3 for years 11-15, 3.5 for years 16-20 and 4 for years 21-25. A remainder of 26 weeks or more counts as a year; weekly pay is capped at 4 times the weekly basic insurable earnings.
• Employee notice, notice under 26 weeks and unfair-dismissal compensation were not researched.

13th salary and bonuses

Not mandatory by statute. It becomes binding if the contract or a collective agreement provides it, or if it has become established company practice; it is customary in December (Eurofast, checked 2026-10-07, read through a search extract).

Mandatory benefits

• Social insurance, the Redundancy Fund, HRDA, the Social Cohesion Fund and GESY through the contributions above; the Central Holiday Fund for leave pay unless the employer holds an exemption (Ministry of Labour, checked 2026-10-07).
• A written statement of terms and monthly payslips are mandatory.
• Sick pay and employer-funded private health or pension were not researched.

Work permits

• EU/EEA nationals need no permit.
• Non-EU nationals need an employer-sponsored permit. The Department of Labour approves the contract after a labour market test, then the Civil Registry and Migration Department issues the residence and employment permit (Cyprus Mail, checked 2026-10-07).
• Companies registered with the Business Facilitation Unit (companies of foreign interests, with EUR 200,000 initial investment and independent offices in Cyprus) may employ non-EU staff earning at least EUR 2,500 gross a month with a degree or 2 years’ experience on a contract of at least 2 years, up to 70% of staff in the first 5 years. Support staff below EUR 2,500 may be up to 30% of support staff (government strategy, Feb 2024, checked 2026-10-07).
• EU Blue Card, open since 2025-07-07: minimum salary EUR 43,632 a year; unlimited quotas only for ICT, pharmaceutical research and maritime (Mondaq, law-firm summary, checked 2026-10-07).
• Whether an agency or EOR can be the sponsoring employer for a third-country national placed with a foreign client is not stated in the sources we found. The government sites (moi.gov.cy, BFU pages) did not open; these figures come from the strategy document and secondary sources.

Currency and payroll

EUR. No statutory pay frequency; monthly pay is the usual practice. Wages are paid by bank transfer or bank cheque, and a payslip is due within 5 working days of payment (KPMG Cyprus, checked 2026-10-07). Personal data is governed by the GDPR and Law 125(I)/2018.

Is Employer of Record legal in Cyprus?

Grey area. Cyprus has no EOR statute. The closest regime is the Temporary Agency Work Law 174(I)/2012 (as amended by 87(I)/2021), which makes the agency the employer of a worker placed with a user. It needs a licence, a bank guarantee and a Department register entry, limits an assignment, and covers temporary needs. A multi-year EOR placement does not fit those limits as written (cylaw.org, checked 2026-10-07).

Two Cypriot law firms read the model differently:

• Elias Neocleous (2022): a grey area, with “no clear guidance” on employee remedies or employer liability, citing CJEU C-610/18, under which the employer for social-security purposes is the undertaking with actual authority and power to dismiss (Mondaq, checked 2026-10-07).
• Harris Kyriakides: a recognised model where all employer duties are met, with a warning that if an EOR fails its obligations the client “may still face exposure depending on the circumstances” (harriskyriakides.law, checked 2026-10-07).

We found no court decision or Department of Labour guidance on EOR. See also the Employer of Record glossary entry.

The rules, which apply if the arrangement falls under the agency law:

• Licence. Running an agency without a licence from the Director of the Department of Labour is prohibited (art. 6). The licence lasts 3 years, is renewable and not transferable, and the agency is entered in a Department register (arts. 10, 12).
• Who can hold it. A Cypriot or EU citizen, or a company incorporated in Cyprus or another EU state with a registered office or place of work in Cyprus; a responsible operator with a relevant degree or experience. A bank guarantee, set by Regulations we did not find, secures wages and compensation, and the licence is revoked if it is not lodged (arts. 7, 8, 21).
• Assignment limit. An assignment may not exceed 4 months, renewable in writing for the same user up to 12 months in total (art. 15). The user is the person for whose temporary or extraordinary needs, and under whose supervision, the worker works (art. 2).
• Sectors. The law does not apply to construction and tourism (art. 4(3)). Placement is barred to replace strikers or at a user that made redundancies in the same specialities in the previous 12 months (art. 16(2)).
• Equal treatment and contract. Working time, leave, holidays and pay during an assignment are at least those of a directly hired worker in the same post (arts. 18-20). A written contract before work starts must state the agency’s licence number (art. 14).
• Separate licence. The Private Employment Agencies Law requires a licence for anyone mediating employment for a fee, including handling entry, residence and employment of third-country nationals; unlicensed operation is punishable by up to EUR 10,000 or 1 year in prison (Department of Labour, checked 2026-10-07). Whether an EOR needs it was not established.
• Posted workers. A foreign agency can place a worker in Cyprus under the Posting of Workers Law 63(I)/2017, with prior notification to the Department of Labour and Cyprus pay, leave and working-time terms (Department of Labour guide, checked 2026-10-07). Whether it covers an EOR employing a person who lives in Cyprus is not stated.

Risks the client carries:

• Joint liability. The agency and the user are jointly and severally liable for the worker’s pay rights; the user’s liability is suspended only where the pay can be met from the bank guarantee (art. 16(1)). The user answers for working conditions during the assignment (art. 19(2)).
• Penalties. Up to 1 year in prison or a fine up to EUR 10,000 for running an agency without a licence or breaching arts. 14, 15 or 16; an administrative fine up to EUR 2,500, suspension or revocation. Company officers are personally liable where the breach is committed with their consent or through neglect (arts. 25-29). Whether art. 27 reaches a client was not tested against case law.
• Misclassification. A contractor arrangement later treated as employment can bring back payments and penalties (Harris Kyriakides).
• Enforcement attention. In 2026 unions and Parliament link agency “renting” of workers to abuse; the Department of Labour Relations warned hotel associations on 2025-06-17 (Cyprus Mail, checked 2026-10-07). That concerns hotels and low-wage agency staff, not IT EOR.

The EOR employer of a Cyprus-based employee must be registered with Social Insurance Services and pay the contributions above. Whether it needs an agency licence for each client placement is the open question.

Who actually employs your hire in Cyprus

We looked each provider up by name in the Registrar of Companies through a public mirror, companieshousecyprus.com, which hides directors and shareholders. We did not search a register of licensed temporary agencies: none was found online. Where a Cypriot company carries a provider’s name but the provider does not say it is its employer, the table says so and counts the provider as not disclosed.

All checked 2026-10-07. Not in the table: Skuad and Boundless, whose owner Payoneer Workforce Management writes on its Cyprus page (updated 2026-04-22) that “it’s not possible to work with an EOR in Cyprus”, while the Skuad and Boundless pages offer the service (payoneer.com); we list neither as operating. We also could not confirm EOR in Cyprus for Papaya Global, RemotePass, Kleos or Remozo.

Sixteen of 17 providers don’t say which Cypriot company employs your hire, and for five of them a company with the provider’s name is registered without the provider claiming it. That matters because the agency law attaches a licence, a guarantee and joint liability to the employer. Before signing, ask: “Which Cypriot company signs my employee’s contract, and do you hold a licence under the Temporary Agency Work Law or rely on another basis?” Ask for the licence number if there is one.

How to choose an EOR in Cyprus

Want a named employer? Only Atlas HXM says it operates its own entity in Cyprus, and that is its own statement, not a register match. For every provider, ask in writing which company signs the contract and on what legal basis, since no provider’s page answers it.

Hiring a non-EU national? The sources do not say whether an agency or EOR can sponsor a permit for a worker placed with a foreign client. The permit is employer-sponsored, so the question is who files. Remote’s page says right-to-work assessment for non-citizens adds three days. If your own Cypriot company can qualify under the Business Facilitation Unit conditions (EUR 2,500 minimum salary, a contract of at least 2 years), that route sits outside the EOR question.

Expect a long engagement or a team? If the arrangement falls under the agency law, an assignment is capped at 4 months, or 12 with written renewals, and no source says how that applies to a multi-year EOR contract. Ask how the provider structures a hire you want to keep, or weigh your own entity.

Price against completeness? Among the Cyprus pages that show a price, Remote People is lowest at $199 per month (shown site-wide), then Playroll from $399, Deel from $599 and Remote at $699. Playroll also publishes no setup cost, no minimum commitment and 10 to 15 business days to onboard. The others show global prices or none. Compare price after you have the answer to the employer question.

What it costs to employ someone in Cyprus through an EOR

The EOR is the employer in Cyprus, with an office or IT employee on an ordinary open-ended contract. Gross pay is EUR 44,400 and EUR 88,800 a year, about USD 50,000 and USD 100,000 at the ECB reference rate of 1 EUR = 1.1269 USD on 2026-10-06 (ecb.europa.eu, checked 2026-10-07).

Not included: the Central Holiday Fund (8-16% of pay unless the employer holds an exemption, left out because we could not confirm whether an EOR is exempt) and employer-funded benefits. A 13th salary is customary only, not statutory. Employee-side deductions are not employer cost.

The EOR’s own fee comes on top, in USD per month. Four providers show a price on a Cyprus page: Remote People from $199 (shown site-wide), Playroll from $399, Deel (management fee) from $599 and Remote $699 (global list price in its widget). Global list prices, where no Cyprus figure exists, run from $99 (Native Teams) to $699. Deel’s page also lists an administrative charge of 0.60% of salary for employer’s liability insurance. Oyster, RemoFirst and Rippling publish no Cyprus figure we could confirm, and G-P, Pebl and Safeguard Global publish prices on request.

Hidden costs: Playroll’s Cyprus page shows no setup cost and no minimum commitment. Oyster says it requires a refundable deposit, amount not published (global FAQ, not Cyprus-specific). Deposit, minimum term and termination fee are not published for Cyprus by any other provider we checked. Treat a blank as unpublished, not zero.

When you don’t need an EOR

• A genuinely independent contractor. If the person sets their own hours and tools and can serve other clients, a contract is closer to the real relationship. See how to pay contractors in Cyprus and our hiring guide. See contractor misclassification and EOR vs PEO.
• Your own Cypriot entity. The route to weigh when the hire will outlast the 4-month and 12-month agency limits, or when you want to be the registered employer for a non-EU permit. A company registered with the Business Facilitation Unit has its own conditions: EUR 200,000 initial investment and independent offices in Cyprus (government strategy, checked 2026-10-07).

What changed in 2026

• 2026-01-01: the minimum wage rose 8.8% to EUR 1,088 gross a month after 6 months’ service (from EUR 1,000), and to EUR 979 in the first 6 months (from EUR 900) (Harris Kyriakides, checked 2026-10-07).
• 2026-01-01: maximum insurable earnings rose to EUR 5,742 a month, EUR 68,904 a year (EUR 66,612 in 2025). Employer rates are unchanged (KPMG Cyprus, checked 2026-10-07).
• 2026-01-01: tax reform enacted on 2025-12-31 raises corporate income tax from 12.5% to 15%, makes ex gratia payments to employees non-deductible and changes personal income tax bands and allowances (EY, checked 2026-10-07). Band figures were not in the source we read.
• 2026-06-07: transposition date of the EU Pay Transparency Directive 2023/970. Cyprus had not passed the law; as of September 2026 the bill awaits Cabinet approval, and the first employer gender pay gap report is expected by 2027-06-06 (Politis, checked 2026-10-07).
• 2026-07-24: hotel unions demand a crackdown on agency “rented” workers, citing breaches of Law 174(I)/2012. The law itself has not changed (Cyprus Mail, checked 2026-10-07).
• 2026-12-31 (target, not law): a bill aligning the Minimum Wage Law with Directive (EU) 2022/2041 is due in Parliament by the end of 2026, and a collective bargaining action plan in November 2026 (Cyprus Mail, checked 2026-10-07).

Numbers vendors haven’t updated

• Minimum wage. The rate in force is EUR 1,088 a month after 6 months, from 2026-01-01. Deel’s page gives EUR 1,088 (EUR 979 in the first six months); Playroll’s, Rivermate’s and Skuad’s pages give EUR 1,000, the 2024-2025 rate (deel.com, playroll.com, rivermate.com, skuad.io, checked 2026-10-07).
• Employer cost. The five contributions sum to 15.4%. Deel’s page estimates 15.50%, Playroll’s headline figure is 15.4% while its EUR 3,000 example shows “Total Statutory On-Costs 22.9%”, and Rivermate’s table sums to 11.45%; we did not compare these breakdowns line by line (deel.com, playroll.com, rivermate.com, checked 2026-10-07).

How we built this page

Facts were collected and checked on 2026-10-07 against Cypriot legislation on cylaw, KPMG Cyprus, Eurofast, law-firm and press material; the 2026 minimum wage decree, the EUR 180,000 GESY cap and the Blue Card terms rest on secondary sources, and the government immigration pages did not open. Companies were looked up by name in the Registrar of Companies through a public mirror; no register of licensed temporary agencies was found online, so no provider is checked against it, and where a provider uses a differently named entity or a partner, our search cannot see it. Providers are ordered with the one stated own entity first, then those that do not disclose, by published Cyprus price and completeness of data; no provider pays for placement.