Work Benefits in Cyprus

Find out about current benefits that come with an employment contract in Cyprus, including 13th salaries, bonuses, provident funds and medical insurance...

There are a number of customary benefits offered by international (and local) companies operating in Cyprus. These benefits are not statutory: an employer chooses which of these benefits to offer, at what level, and to which categories of staff. They are usually offered on top of the gross annual salary.

Provident Fund

The vast majority of large and medium organisations offer provident fund schemes or some other form of retirement benefit, like pension schemes. For the majority of organisations, the employer’s contribution ranges from three to seven percent on gross emoluments.

Medical Insurance

Almost all larger and medium-sized organisations offer a medical insurance scheme, which includes coverage for the employee’s dependants as well. Depending on the scheme, this usually covers visits to medical professionals, inpatient treatment in hospital, medical tests and medications in full or partly. Some organisations may offer life insurance as well.

Medical insurance schemes are usually contributory, in that the cost is shared between the company and the employee.

Some smaller companies offer either a provident fund or medical insurance coverage.

13th Salary

The greater majority of organisations offer a 13th salary, which is paid out around the Christmas period.

Annual Bonus

Annual bonuses are usually paid across middle management level and above. Such performance-related schemes are usually tied to the company and individual targets. The size of the bonus varies between levels of employees: for example for senior management posts, it may be one to three times the size of a monthly salary.

Other Benefits and Allowances

Companies may offer other benefits such as free parking spaces, car or fuel allowance, gym allowance, subsidised meals, a mobile phone or mobile allowances and a company car. Cellphones and cars are usually provided for specific positions, such as management and sales. For expatriate employees, additional benefits are usually offered such as relocation expenses, housing or housing allowances, and annual return trips to the native country.

Overall, it is good practice to provide all employees with similar basic benefits and to modify other "advanced" benefits such as annual bonus, car and cellphone depending on post, grade, years with the firm and other factors.

It is important to note that during the last few years, due to difficult economic conditions, a number of organisations have revisited their approach to work benefits. These changes may include temporary freezing of benefits, or a decrease in the contribution of the employer to the benefit. The above benefits may be subject to further changes.

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. © 2013 PricewaterhouseCoopers Ltd. All rights reserved. PwC refers to the Cyprus member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. Written by Phryni Yiakoumetti and Revekka Papantoniou. Tel: 22 555 000 ¦ PwC Cyprus