Working in Cyprus - End of Employment

The employee is entitled to compensation if the employer dismisses him after the probationary period has expired. The amount of compensation depends on the employee’s length of service.

An employee who has been with the same employer for more than 104 weeks and is dismissed before reaching the pension period because he is surplus to requirements is entitled to a payment from the redundancy fund. The employment of a seasonal worker totalling more than 15 weeks with one employer is treated as continuous.

The following conditions apply:

• the dismissal of 10 individuals together by an organisation employing 21-99 individuals or of 10% of the employees of an organisation employing 100-299 individuals or of 30 individuals together by an organisation employing more than 300 individuals is treated as a group dismissal;
• the employer must consult the representatives of the employees in good time and give them sufficient information about the decision and the amount of compensation etc.;
• the employer must inform the Ministry of Labour and Social Insurance.

The following information is relevant with regard to pensions:

• the social insurance contribution is 6.3% for employees, 6.3% for the employer and 4% for the State;
• social insurance contributions are paid by all persons who earn a living as employees;
• self-employed people also pay social insurance contributions, the level of which is based on income, profession and the place of the employment;
• all insured persons (salaried persons, self-employed persons and insured persons who have paid contributions voluntarily) are entitled to the old-age pension. Persons insured in the social insurance system receive the pension at 65 years of age or at 63 years of age in accordance with the relevant conditions;
• widows of insured persons are entitled to the survivor’s pension in accordance with the relevant conditions;
• an employee is entitled to the invalidity pension if he has not reached the age of 63 and on the basis of specific conditions such as inability to work and having been unable to work for a period of at least 156 days. The pension comprises the basic pension and a supplementary amount.

Allowances for bodily injury sustained at work and disability and death benefits are also paid on the basis of the Social Insurance Department legislation.

• Information about the above matters can be obtained from the Social Insurance Department (Tel: +357 22 401 600) and the Department of Labour Relations (Tel: +357 22 451 500/1).

Text last edited on: 12/2007

Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.