Payroll services in Cyprus: payslips and returns every month
An employer in Cyprus pays 15.4% on top of each gross salary and files returns every month. We register the company as an employer, run its payroll and file the returns.
- Net pay a month
- €2,066.83
- Income tax
- €58.37
- Social insurance and GeSY
- €274.80
- Cost to the employer
- €2,769.60
Cyprus salary and tax calculator, 2026 rates: twelve salaries a year, before the family and housing deductions.
Payroll in Cyprus: what an employer does each month
The dates by authority are in payroll dates in Cyprus, and the company's other dates in the Cyprus tax calendar.
PAYETax and contributions, due the next month
An employer in Cyprus pays salaries monthly, in euros. It withholds income tax from each salary under PAYE, the pay-as-you-earn system, and pays social insurance and health contributions for the company and for the employee. The tax and the contributions of a month are due by the end of the following month.
1 dayBefore work starts, to declare each new hire
Before the first hire the company enters the Register of Employers of the Social Insurance Services. It declares each new employee in Ergani, the Ministry of Labour's online system, 1 day or more before work starts. A business from abroad employs staff through a Cyprus company or a registered branch, so company formation in Cyprus comes first.
€1,088Minimum wage, leave and the 13th salary
- Minimum wage in 2026 and 2027: €1,088 gross a month, or €979 in the first 6 months of a job
- Paid leave: 20 working days a year for a 5-day week
- 13th salary: paid where the employment contract gives one
Social insurance and GeSY contributions in Cyprus in 2026: rates for employee and employer
Social insurance is charged on pay up to €5,742 a month, GeSY on income up to €180,000 a year.
| Contribution | Employee pays | Employer pays |
|---|---|---|
| Social insurance | 8.8% | 8.8% |
| GeSY, the General Healthcare System | 2.65% | 2.90% |
| Social Cohesion Fund | none | 2.0% |
| Redundancy Fund | none | 1.2% |
| Human Resources Development Fund | none | 0.5% |
| Income tax (PAYE) | 0% to 35% | none |
| Total on gross pay | 11.45% and income tax | 15.4% |
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…they handled my Cyprus company setup while I was still in London. Smooth remote process and great communication.
We set up a company in Cyprus. Nobody pushed extra services, everything was to the point. They explain things clearly, give a real timeline and help with the tax details.
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What payroll services in Cyprus cost
Prices are before VAT.
Payroll
Fixed in your quoteYou get the figure in writing by the end of the next working day.
Get a quote- Registration as an employer
- in your quote
- Accounting with tax filings, a month
- from €290
- Company formation with a tax number
- from €1,699
Cyprus salary and tax calculation: €4,000 gross a month in 2026
An employee on €4,000 gross a month takes home €3,154.40 in 2026, and the employer pays €4,616 in all.
| Line | Rate | A month |
|---|---|---|
| Gross salary | €4,000.00 | |
| Employee's social insurance | 8.8% | €352.00 |
| Employee's GeSY | 2.65% | €106.00 |
| Income tax (PAYE) | 20% to 30% above €22,000 a year | €387.60 |
| Net pay | €3,154.40 | |
| Employer's contributions | 15.4% | €616.00 |
| Total cost to the employer | €4,616.00 |
€22,000Income tax bands in 2026
Income tax is charged on the salary of the year after the employee's own social insurance and GeSY, by these bands.
| Taxable income a year | Rate |
|---|---|
| Up to €22,000 | 0% |
| €22,001 to €32,000 | 20% |
| €32,001 to €42,000 | 25% |
| €42,001 to €72,000 | 30% |
| Above €72,000 | 35% |
€4,651.20The tax on this salary, worked through
Taxable income for the year is €42,504: €48,000 for 12 salaries, less €4,224 of social insurance and €1,272 of GeSY.
| On taxable income of €42,504 | Tax |
|---|---|
| First €22,000 at 0% | €0 |
| Next €10,000 at 20% | €2,000 |
| Next €10,000 at 25% | €2,500 |
| Last €504 at 30% | €151.20 |
| Tax for the year | €4,651.20 |
Family and housing deductions, which the employee claims on form T.D.59, lower the tax. For any other salary use the Cyprus tax calculator. The guide works a payslip for €3,000 a month the same way.
What a payroll month with us contains
We calculate each salary from the contract: basic pay, overtime, bonuses and a 13th salary where the contract gives one.
Each employee receives a payslip with the gross pay, every deduction and the net amount.
We calculate the tax to withhold from each salary and file the employer's monthly return in Tax For All, the Tax Department's portal.
We calculate what the company and each employee owe to social insurance, to GeSY and to the 3 employer's funds, and declare it to the Social Insurance Services.
You receive one payment file with all the salaries, ready to upload to the company's bank. For the account itself see bank account in Cyprus.
After the year ends we file the employer's yearly return and give each employee form T.D.63, the certificate of pay and tax withheld. The payroll totals go into the books of accounting in Cyprus.
Payroll dates in Cyprus and the fines for a late payment
We file each return and tell you each amount ahead of its date.
| Filing or payment | Due | Fine if late |
|---|---|---|
| Employer's monthly return and income tax | End of the following month | 1% of the tax a month, plus interest |
| Social insurance, GeSY and the funds | End of the following month | 3% in the first month, then 3% more a month, up to 27% |
| Employer's yearly return for 2025 | 30 November 2026 | €250, or €500 for an employer with turnover or assets above €1 million |
| Employer's yearly return for 2026 | 31 March 2027 | €250 or €500, by the same test |
How we register a Cyprus company as an employer
- before the first hire1
We register the company
We file form YKA 01-001 with the district office of the Social Insurance Services, and the company receives its employer's registration number.
- 1 day before start2
We declare each new employee
You send the signed contract. We declare the hire through Ergani and register the employee with the Social Insurance Services and the Tax Department.
- first week3
The employee completes form T.D.59
The form tells us which deductions the employee claims, so the tax withheld each month matches the tax due for the year.
- first month4
We run the first payroll
We set up each employee's pay, tax and contributions. You approve the figures in your account, and we send the payslips.
Staff who move to Cyprus: the income tax exemptions we apply
In a first job in Cyprus that pays more than €55,000 a year, half of the salary is exempt from income tax for 17 years. It applies to an employee who was not tax resident in Cyprus, and held no job there, in the 15 years before.
A first Cyprus job begun by the end of 2027, after 3 years of work abroad for a foreign employer, has 20% of the salary exempt for 7 years. The exemption stops at €8,550 a year.
A former Cyprus resident who comes back after 7 years away, starts work from 2025 to 2030 and earns above €30,000 a year has 25% of the pay exempt, up to €25,000 a year, for 7 years. Income tax in Cyprus sets the three exemptions side by side.
A company with foreign owners registers with the Business Support Center to hire from outside the EU: how a company of foreign interests registers. A salary on that route starts at €2,500 gross a month.
A director's salary runs through the same payroll. For the owner's dividends see non-dom status in Cyprus.
What we need to run your Cyprus payroll
Documents
From the company
- Certificate of incorporation and tax number
- Bank account that pays the salaries
- Each month: hires, leavers, bonuses and leave
For each employee
- Signed employment contract
- Passport or identity card
- Tax number and social insurance number
- Bank account (IBAN) for the salary
- Form T.D.59 with the deductions claimed
You send them in your account. We check each document the day it arrives and tell you what is missing.
See the platformQuestions about payroll services in Cyprus
How much is social insurance in Cyprus in 2026?
8.8% from the employee and 8.8% from the employer, on pay up to €5,742 a month. With GeSY and the 3 employer's funds the employer pays 15.4% on top of the gross salary. The guide on how payroll works in Cyprus shows the net pay at five salaries.
What is the maximum social insurance cap in Cyprus in 2026?
€68,904 of earnings a year, which is €5,742 a month or €1,325 a week.
What are the income tax bands in Cyprus for 2026?
0% on the first €22,000 of taxable income a year, 20% up to €32,000, 25% up to €42,000, 30% up to €72,000 and 35% above. The company's own rates are on tax in Cyprus.
What is the minimum wage in Cyprus in 2026?
€1,088 gross a month for full-time work, and €979 in the first 6 months of a job. The same figures apply in 2027. Who is excluded and how part-time pay is counted: how payroll works in Cyprus.
Is a 13th salary mandatory in Cyprus?
No. Where the contract gives one, we set aside 8.33% of the salary each month.
Do I need a Cyprus company to employ staff in Cyprus?
Yes: a Cyprus company or a registered branch, entered in the Register of Employers. We form the company and register it.
When are salaries paid in Cyprus?
Most employers pay monthly, in euros, by the last working day of the month.
Can payroll cover staff who work remotely?
Yes. The employment contract states where and when the employee works, and the payroll follows the contract.
Get a quote for your Cyprus company
Book a 30-minute call about your company
Your consultant Vladyslav Babaiev Opens in a new tab Business Setup Specialist
- We email you the Google Meet link.
- 30 minutes, free, no obligation to order.
- After the call we email you the checklist of documents for your country.
We reply by the end of the next working day with the cost and the dates for your case. The first call is free and confidential.
Also for a company in Cyprus
Accounting in Cyprus
Books, VAT returns and the yearly filings from €290 a month
OpenTax in Cyprus
15% corporate tax, the IP Box and the returns we file
OpenNon-dom status in Cyprus
0% SDC on a founder's dividends for up to 17 years
OpenCompany formation in Cyprus
Three packages from €1,699, registered in 8 to 12 working days
OpenGuides to a company in Cyprus
All guides to a company in Cyprus
Updated 21 October 2026. Reviewed by Vladyslav Drapii, Founder.
