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Population
Cyprus has a population of approximately 1.2 million people (as of 2023). The majority of the population resides in the Greek Cypriot part of the island, while the northern part is inhabited by Turkish Cypriots. The population is ethnically and culturally divided between these two groups.
Capital
The capital of Cyprus is Nicosia (Lefkosía). It is the last divided capital in Europe and serves as the economic and political hub of the island. The southern part of the city belongs to the Republic of Cyprus, while the northern part has been controlled by the internationally unrecognized Turkish Republic of Northern Cyprus since 1974.
Economic Strength
Cyprus has a modern and diversified service-based economy. Key sectors include financial services, tourism, shipbuilding, and real estate. Cyprus has also established itself as an international financial hub. Due to its location in the eastern Mediterranean, the country benefits from access to European, Asian, and African markets. Tourism is a vital source of income, attracting millions of visitors annually. Cyprus’s economy has recovered well after the 2013 financial crisis.
Culture
Cypriot culture is heavily influenced by Greek, Turkish, and Middle Eastern traditions, with the Greek Orthodox religion playing a major role in the south and Islam in the north. Cypriot cuisine is similar to both Greek and Turkish cuisines, with dishes like meze, souvlaki, and halloumi cheese being popular. Traditional festivals and religious holidays are central to daily life, particularly Easter for the Greek Cypriots and Bayram for the Turkish Cypriots.
Currency
Cyprus has used the Euro (EUR) since joining the Eurozone in 2008. The northern part of the island uses the Turkish Lira (TRY) as its main currency.
Health Insurance and Social Security System
Cyprus introduced a universal healthcare system in 2019, known as the General Health System (GHS). It covers all citizens and legal residents of the country, funded through contributions from employees, employers, and the government. The social security system also provides benefits such as old-age pensions, disability and unemployment benefits, and maternity leave. Employees contribute around 7.8% of their income to social security, while employers contribute 8.3%.
Employer Costs
Employer costs in Cyprus include contributions to social security and the healthcare system. The employer’s contribution rate is 8.3% of the employee’s gross salary for social security and 2.9% for healthcare. Employers often provide additional benefits such as pension plans or voluntary health insurance.
Salary and Bonuses
The average monthly salary in Cyprus varies widely depending on the industry. The minimum wage regulation applies to certain sectors, with the minimum wage for these workers being around 940 EUR per month. Bonuses are common and are typically paid twice a year, once in the summer and once at Christmas.
Payroll
Employers in Cyprus are required to provide employees with a monthly payslip that details the basic salary, allowances, bonuses, and deductions such as taxes and social security contributions. Payslips are essential for ensuring transparency and compliance with tax and labor regulations.
Public Holidays
Cyprus observes numerous public holidays, including:
- New Year’s Day (January 1)
- Greek Orthodox Easter (movable)
- Independence Day (October 1)
- Christmas (December 25)
In the northern part of Cyprus, different public holidays are observed, including the Republic Day of the Turkish Republic of Northern Cyprus.
Working Hours
The typical working hours in Cyprus are 40 hours per week, spread over five working days. Working hours can vary by industry, with the public sector often having shorter workweeks. Overtime is compensated either through payment or additional time off.
Vacation
Employees in Cyprus are entitled to at least 20 to 24 days of paid annual leave, depending on the length of their employment and the type of contract. In addition, they enjoy paid time off during public holidays.
Sick Leave
In cases of illness, employees are entitled to sick leave, which can last up to six months. During this period, they receive sick pay through the social security system, amounting to about 60% of their regular salary. Employers must ensure that employees meet the legal requirements during sick leave.
Termination/Severance
In Cyprus, both employees and employers must observe a notice period when terminating employment, typically ranging from one to three months, depending on the length of service. In the event of dismissal, employees are entitled to severance pay, calculated based on their length of employment. Employees with more than two years of service are entitled to severance pay, which is scaled according to their tenure.