Council of Ministers of the Republic of Cyprus approves Decree on Minimum Salary (Wage)
On 31 August 2022 the Council of Ministers of the Republic of Cyprus, acting in accordance with the powers vested therein by virtue of Section 3(1) of the Minimum Limit of Salaries Law (Cap.183), as amended, has issued the Decree on Minimum Salary (Wage) of 2022.
The Decree will enter into force from the publication date in the Official Gazette of the Republic of Cyprus and will be implemented from 1 January 2023, which will therefrom lead to the abolishment of the equivalent Decree on Minimum Salary (Wage) of 2012 (RAA 180/2012).
Scope of Application
The Decree applies to all employees in the Republic of Cyprus excluding houseworkers, agricultural and maritime workers, and any employee for whom the law, contract, practice or custom provides for more favourable arrangements.
Minimum Salary (Wage) & Work Schedule
According to the provisions of the Decree, from 1 January 2023 the minimum salary (wage) provided to any full-time employee in the Republic of Cyprus has been set to €940 per month.
For full-time employees that, whether before or after 1 January 2023, have not completed six (6) months of continuous employment with the same employer, the minimum salary has been set at €885 per month until the completion of the aforesaid period.
The Decree clarifies that the full-time work schedule for employees in any economic activity is the one provided for at the time of the Decree’s issuance based on legislation, contract, practice or custom.
For part-time employees, the minimum salary will be adjusted based on the work hours by analogy to the full-time work schedule referred to above.
Nutrition & Accommodation Allowance
The Decree further delineates that in cases where, in the context of an agreed employment contract, the employer provides the employee with decent nutrition and/or accommodation, the minimum monthly salary may be reduced:
- up to 15% where nutrition is provided and/or
- up to 10% where accommodation is provided to the employee,
without prejudice to employee’s right to terminate the said nutrition and/or accommodation allowance with a 45-day notice to the employer.
ServPRO’s Role in Employment Matters
ServPRO is a well-established team of accountants, auditors, advocates and consultants in Cyprus. Our areas of expertise are Accounting & Finance, Advisory & Consulting, Audit & Assurance, Corporate & Legal, Economic Substance and Taxation.
In terms of Accounting & Finance, we assist our clients by registering companies onto the Employer’s Register with the Social Insurance Department, doing the necessary filings with Ergani system, preparing the monthly payroll and any other service relating to payroll, as well as by preparing and submitting the annual employer’s return (TD7 forms). View our Accounting & Finance services
From a Corporate & Legal perspective, we assist our clients with registration of local and foreign companies in Cyprus and obtaining the requisite work permits, advice on employment-related matters, draft employment contracts, and handle negotiations, mediation and litigation of employment disputes. View our Corporate & Legal services
For more information on this topic contact us by telephone (+35722021100) or email ([email protected]).