Employment and payroll in Cyprus:
Employment contracts are required by law for each member of staff employed. A contract is an agreement which sets out the terms such as employment conditions, rights, responsibilities and duties of an employee.
Employers must register under the PAYE system and deduct and pay over PAYE on a monthly basis.
There is also a social Insurance Scheme (SIS) in Cyprus which covers all employed and self-employed persons. An employer would be responsible for registering under the SIS and deducting and paying over the correct contributions from gross salary. A self-employed person would be responsible for registering themselves under the SIS and pay contributions over directly. The scheme covers sickness, maternity, disability, unemployment benefits and pensions.