Payroll and Social Insurance Services In Cyprus

Payroll Processing Services Include the Following:

• Social Insurance and income tax registration of the company
• Social Insurance and income tax registration for the new staff
• Preparation of employment contract
• Monthly calculation social insurance and payment as well as tax contributions to the authorities too
• Monthly calculation and payment of salaries to the personal accounts of your staff through e-banking, payslips preparation for each person
• Obtaining a yellow slip for foreigners if required
• Preparation and distribution of annual payroll forms (IR63) to employees

Cypriot laws relating to Payroll:

• Social Insurance is compulsory and covers all persons gainfully employed in Cyprus. Social insurance contributions are paid by the employer, the employee, and the state.
• Every employee is entitled to an annual leave of 20 days.
• The Social Pension is a state pension and is available to individuals above the age of 63 for women and 65 for men. The paid-out pension is relative to the contributions made.
• The Pay as you Earn system (PAYE) applies to all salaries, wages, directors’ emolument, pensions, and fringe benefits. PAYE is applicable to all resident and non-resident employees in Cyprus. Tax residents in Cyprus get taxed on their worldwide income while non-resident employees are taxed on the income they generate in Cyprus. It is an obligation of the employee to pay it, and the employer deducts it at the source every month.