Cyprus employer cost calculator, 2026
A salary is never the whole bill. Enter what you plan to pay and see the full annual cost of the hire: social insurance, GESY, redundancy, industrial training and social cohesion, each on its own line.
The role
Social Insurance, Redundancy and Industrial Training stop at the €68,904.00 insurable-earnings ceiling. The Social Cohesion Fund has no ceiling, so it keeps growing with the salary.
Total cost to employ
€57,700.00per year
€4,808.33 per month
| Line | Per year | Per month |
|---|---|---|
| Gross salary | €50,000.00 | €4,166.67 |
| Social Insurance (8.8%) | €4,400.00 | €366.67 |
| Redundancy Fund (1.2%) | €600.00 | €50.00 |
| Industrial Training Fund (HRDA) (0.5%) | €250.00 | €20.83 |
| Social Cohesion Fund (2%)Charged on actual earnings, no ceiling. | €1,000.00 | €83.33 |
| General Healthcare System (GHS) (2.9%) | €1,450.00 | €120.83 |
| Employer contributions15.4% on top of gross | €7,700.00 | €641.67 |
| Total employer cost | €57,700.00 | €4,808.33 |
This is an estimate. It is general information, not tax advice. The statutory rates are only part of the cost. Your contract, benefits in kind, 13th salary, leave, insurance and any sector agreement sit on top. Confirm the numbers with an accountant before you rely on them.
The employer side of a Cyprus payslip
Five funds sit on top of gross salary in Cyprus. Four are payroll levies the employer pays alone; GESY is the health contribution, where the employer's share is separate from the employee's.
| Fund | Rate | Ceiling |
|---|---|---|
| Social Insurance | 8.8% | €68,904 |
| Redundancy Fund | 1.2% | €68,904 |
| Industrial Training Fund (HRDA) | 0.5% | €68,904 |
| Social Cohesion Fund | 2.0% | None |
| General Healthcare System (GESY) | 2.90% | €180,000 |
| Central Holiday Fund (if not exempt) | 8.0% | €68,904 |
Below the ceiling that adds up to 15.4%. Above it the picture changes: social insurance, redundancy and training freeze, so a €120,000 salary carries proportionally less overhead than a €40,000 one. That is the shape the calculator draws for you.
The ceiling, in the units payroll actually uses
Maximum insurable earnings for 2026 are €1,325 a week, €5,742 a month and €68,904 a year, revised upward from €66,612 in 2025. The Department of Social Insurance Services sets it every December, so it moves once a year.
What you withhold, versus what you add
Keep the two straight when you budget. Out of the employee's gross you withhold 8.8% social insurance, 2.65% GESY and PAYE income tax: that money is already inside the salary. On top of the salary you add the 15.4% in the table. Our Cyprus salary calculator shows the withholding side, so you can quote a candidate their net and still know your own number.
Other costs this calculator leaves out
- The Central Holiday Fund unless you tick the box. Most office employers hold an exemption because they grant leave directly.
- A 13th salary, where the contract provides one. It is customary in Cyprus rather than required by law.
- Benefits in kind (car, private health, phone), which are generally taxable on the employee and may carry contributions.
- Employer's provident fund contributions, if you run a scheme, plus recruitment, equipment and workspace.
Hiring in Cyprus from abroad
The rates above do not change with the employee's nationality. What changes is their side of the payslip: a new arrival may qualify for one of the employment-income exemptions, 50% above €55,000 or the 25% repatriation relief for people moving back, which cuts their tax and makes a given gross offer worth more to them at no extra cost to you. That is often the cheapest lever in a Cyprus offer, and the salary calculator models all three.
Embed this calculator
Free to use on your own site: an accountant's page, an HR handbook, a relocation guide. Paste the snippet, keep the credit link, done. We update the rates every January and your copy updates with them.
Questions, answered
How much does an employee cost on top of salary in Cyprus?
15.4% of gross, for a normal office employer in 2026: 8.8% social insurance, 2.90% GESY, 2.0% social cohesion, 1.2% redundancy and 0.5% industrial training. On a €40,000 salary that is €6,160, so the employee costs €46,160 a year.
Which employer contributions stop at a ceiling?
Social insurance, the redundancy fund and the industrial training levy are all charged only on insurable earnings up to €68,904 a year for 2026 (€5,742 a month). The social cohesion fund is charged on actual earnings with no ceiling, and GESY runs to €180,000.
Do we have to pay the Central Holiday Fund?
Only if you are not exempt. Employers who grant annual leave directly on terms at least as good as the statutory minimum are normally exempt, which covers most office employers. Construction, hospitality and manufacturing typically pay the 8%. Tick the box in the calculator if it applies to you.
Does the employer pay income tax for the employee?
No, but you withhold it. Income tax and the employee's own 8.8% social insurance and 2.65% GESY come out of the employee's gross pay under PAYE and are remitted by you. They are not an extra cost on top. The employer contributions in this calculator are.
What about a 13th salary?
It is customary rather than statutory in Cyprus, and where it is in the contract it is treated as ordinary remuneration: taxed and charged with contributions like any other pay. If you pay one, budget an extra month of everything this calculator shows.
We build the software behind numbers like these
Dubir Group is a Cyprus technology company in Paphos. Payroll tools, internal systems, AI that does real work. If something in your business is still a spreadsheet, we should talk.