Guide to living and working in Cyprus

Cyprus

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Country Overview

 

Population

788,457

Unemployment Rate

5.5% (11/07)

Average annual unemployment rate 1995 – 2004

NA

GDP

€12.18bn / $18.04bn

GDP per head

€15,526 / $23,000

Capital

Nicosia

Major language

Greek, Turkish

Life Expectancy (UN)

76 years (men)

82 years (women)

Monetary unit

Euro; Turkish lira in North

Internet domain

.cy

International dialing code

+357

 

The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for 78% of GDP. Tourism and financial services are the most important sectors. Erratic growth rates over the past decade reflect the economy's reliance on tourism, which fluctuates with political instability in the region and economic conditions in Western Europe. Nevertheless, the economy in the area under government control grew a healthy 3.7% to 3.8% per year in 2004, 2005 and 2006, well above the EU average.

The Turkish Cypriot economy has approximately 30% of the per capita GDP of the South. Economic growth is volatile in the north owing to its isolation, large public sector, reliance on the Turkish lira and small market size. The Turkish Cypriot economy grew around 10.6% in 2006-07, fuelled by growth in the construction and education sectors, as well as increased employment of Turkish Cypriots in the south. The agricultural and services sectors employ more than half of the work force. Turkish Cypriots are heavily dependent on transfers from the Turkish Government: aid from Turkey has reached over $400 million annually in recent years.

The Economy

 

 

 

 

Industries include: tourism, food and beverage processing, cement and gypsum production, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone, and clay products.

 

Pay

 

 

 

Human development Index

Ranking:  28th
Index value:  0.903

 

 

 

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

The Cypriot labour market has a large number of unemployed general secondary education leavers (monthly average of 6,000 in the first nine months of 2006). There are also 63,000 foreign workers in Cyprus, of which a substantial number are European citizens. The number of European citizens working in Cyprus has increased by about 25% annually since 2004.

The largest employers are: the government, the banking sector and the semi state organisations. Industry has diminished in size in recent years. Most private companies are small or medium-sized enterprises employing up to 250 people; the majority employing fewer than 50 people.

The labour market forecasts for the 2005-2015 period include: 

  • an increase in the number of unskilled workers from 59 000 in 2005 to 76 000 in 2015;
  • an increase in the number of workers in services and sales from 58 000 in 2005 to 70 000 in 2015;
  • an increase in the number of graduates from 46 000 in 2005 to 56 000 in 2015;
  • an increase in the number of technicians from 51 000 in 2005 to 53 000 in 2015;
  • an increase in the number of managers from 9 000 in 2005 to 12 500 in 2015.

 

Applying for a job:

A job application can be submitted to the Public Employment Service, directly to the employer or through an employment official at a district labour office. It is also common practice to send your curriculum vitae to employment agencies, in order for your application to be considered when a vacancy arises. The process of filling a vacancy usually begins with an advertisement in a newspaper or through an employment agency. Once CVs are received and evaluated, candidates are selected for interview. A successful candidate may have to complete two or three interviews. Companies often hold written examinations or carry out forms of practical tests at assessment centres. Interviews for people who do not speak Greek are usually conducted in English, unless there is another common language.

 

Conditions and rights

Employment law:

Cypriot Labour Law is a combination of contract law, statute law and common law. The laws conform to the regulations of a number of International Labour Organisation Conventions ratified by Cyprus. Employment relationships are based on the employment contract. There are specialized labour courts that regulate labour disputes and for some matters they may have exclusive jurisdiction (e.g. redundancy).

Working hours:

Standard hours: Hours of work vary according to sector and profession. Most offices and businesses work from 08:00 to 17:30 hours with a break from 13:00 to 14:30 hours. Wednesday afternoons are usually free and work stops at 13:00 hours. Weekly working time ranges from 38 to 40 hours in most companies.
Overtime: Overtime is paid accordingly, though not in every case. The maximum working week is 48 hours, inclusive of overtime.
Shop opening hours: are subject to legislation. In general, shops stay open until 19:30 in the winter months (November to March) and until 20:00 in the summer. Wednesday is a half-closing day, and the shops close at 15:00 hours. Adherence to the custom of the siesta from 14:00 to 17:00 hours is optional.

Holidays and leave:

There are 20 working days of leave for employees on a five-day week and 24 working days of leave for workers on a six-day week. The employment contract or collective agreement may provide for more days of paid leave. Workers request leave and may take it with the permission of the company.

Sickness leave: is fixed by agreement between employers and employees through collective or individual agreements. A worker who does not receive sick pay from his employer is entitled to sickness benefit from the Social Insurance Fund under certain circumstances.
Maternity leave: Sixteen weeks of paid maternity leave are provided.
Parental leave: Both the father and the mother are entitled to parental leave. A parent who has worked for an employer for more than six months is entitled to parental leave of up to 13 weeks after a birth or adoption.
Study leave: Some employers grant study leave to enable the employee to obtain professional qualifications (e.g. certified accountants) or qualifications which enhance his/her work skills.

Public holidays: 1 January, 6 January, Green Monday, 25 March, 1 April, Good Friday, Easter Monday, 1 May, Pentecost, 15 August, 1 October, 28 October and 24-26 December.

 

Contracts

 

Types of employment:

The minimum working age is 15. Cyprus does not have a uniform employment contract system. Where the terms of employment at an organisation are not governed by collective agreements, you can sign a contract of employment of fixed or indeterminate duration with the employer. Contract of indeterminate determination are the most common. Your employer must inform you about the place of work, the registered address of the organisation, your job and duties, the start and end date of your employment, holidays with pay, earnings and allowances, working hours and days, and information about any work that you will undertake abroad.
There is seasonal work in sectors such as tourism and agriculture. Part-time employment is used by a few organisations, but is not very widespread. Temporary employment is uncommon, with few agencies providing a temporary employee service to companies.

Employment contracts:

Collective agreements between trade unions and employers usually last two years. The employer must inform the employee of any changes within one month. If the employer intends to amend the terms of employment, he must discuss and agree the amendment with the employee before doing so. If such an amendment worsens the conditions of employment, the employee can invoke enforced resignation and take the matter to the Labour Disputes Court.

Where the company is to be merged with or taken over by another company, the employer must give the employees advance information about the date of the merger or take-over, the reasons and the consequences (legal, economic and social). The rights and obligations are transferred to the new employer, and that employer must retain the terms of employment for at least one year.

 

Visas and work permits

Visas and passports:

Nationals of certain countries can visit Cyprus for up to three months without a visa but will need to be granted a work permit or visa to take up employment.
No visa is required for tourists for a stay of up to 90 days for nationals of:

Andorra, Argentina, Australia, Austria, Belgium, Bolivia, Brazil, Brunei Darussalam, Bulgaria, Canada, Chile, Costa Rica, Croatia, Czech Republic, Denmark, El Salvador, Estonia, Finland, France, Germany, Greece, Guatemala, Holy See (State of Vatican), Honduras, Hungary, Iceland, Ireland, Israel, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Monaco, Netherlands, New Zealand, Nicaragua, Norway, Panama, Paraguay, Poland, Portugal, Romania, San Marino, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, United Kingdom, United States of America, Uruguay, Venezuela. Special Administrative Regions of the People’s Republic of China: Hong Kong and Macao.
Nationals of countries not mentioned above will need a visa to visit Cyprus.
Work permits:

Citizens of EU/EEA Member Countries: are able to live and work in Cyprus without a visa or work permit.
Non-EU citizens: must obtain a work visa or permit to work in Cyprus, which should be obtained before arriving. The visa is granted by the Ministry of Immigration in Nicosia. "Off Shore" companies that operate in Cyprus may employ up to 3 foreign residents in administrative positions, as directors or partners. An employment permit is granted when the employee is over 24 years of age and his annual income is above €20,503.

 

Tax, social security and healthcare

Taxation system:

The tax system in Cyprus is progressive: the higher your income, the higher the rate at which you will pay tax. In 2006, the tax rates for an individual were 20-30%. An individual is liable for tax on his income as an employee and on income as a self-employed person. A foreign resident who is employed in Cyprus pays tax only on income earned in Cyprus. To be considered a resident of Cyprus, you must spend at least 183 days in Cyprus during any calendar tax year. Employers make monthly deductions from salary for tax and national insurance for salaried workers.

Cyprus Individual income tax rates 2008:

Tax %       Tax base (CYP)
0                up to 10,750
20              from 10,750-15,750
25              from 15,750-20,600
30              20,600 and higher

 

Social security system:

The employer, the employee and the State all contribute to social insurance (6.3%, 6.3% and 4% respectively). The social insurance requirement applies to all persons working in Cyprus. When you start work in Cyprus you pay contributions to the Social Insurance Fund. Participation in social insurance gives cover for: unemployment, sickness, maternity, occupational disease, disability and death etc. It also provides pensions for the self-employed, the old-age pension and the survivor’s pension.

Health:

Medical care is provided by the government medical services and the private medical sector. State medical services can be used by anyone who chooses to be treated at a medical institution. They provide treatment free of charge or at a reduced rate for certain groups of individuals. More information can be obtained from the Ministry of Health.

Emergency care is provided free to all persons who arrive at the accident and emergency departments of state hospitals. Every city has its own hospital with an accident and emergency department. Persons who opt for the private sector cover pay the costs themselves. Certain groups are covered by trade union or employer insurance funds which provide full or partial cover of medical costs for its members.

 

Lifestyle


Despite being a small island, it has two distinct communities.  Even with EU membership the situation over the partitioned island remains largely unresolved and only the Greek Cypriot south benefits from EU laws and membership.
The clean beaches, food and wine combine to offer residents a fine Mediterranean life style. EU membership has led to greater growth and continuing improvements in the infrastructure. Health, education and day to day services like supermarkets now all cater to foreign residents and expats.

 

Report complied: 2008
Copyright © 2008 Exposure Jobs