Minimum wage Cyprus: 2026 rates, average salary and net pay

The national minimum wage in Cyprus is €979 gross a month for full-time work on hiring and €1,088 after six months with the same employer, from 1 January 2026; before that it was €900 and €1,000. Part-time pay is scaled to the hours. Domestic, agricultural and livestock workers, the maritime sector and hotel staff are outside this decree; hotels have their own. For comparison, CYSTAT puts 2025 average gross monthly earnings at €2,591 and the median at €1,953. From gross pay the employer withholds 8.8% social insurance up to €5,742 a month, 2.65% GESY and income tax, which is 0% up to €22,000 a year. On €1,088 a month with 12 salaries no income tax is due and take-home pay is about €963. On top of pay the employer adds its own 8.8% social insurance, 2.9% GESY and contributions to the redundancy, training and social cohesion funds.

According to the Labour Inspectorate, from 1 January 2026 the national minimum wage for full-time work is €979 gross a month on hiring and €1,088 gross a month after six months of continuous employment with the same employer. Before that the rates were €900 and €1,000. Part-time pay is scaled to the hours worked compared with full-time hours.

The decree does not cover domestic workers, agricultural and livestock workers, the maritime sector and hotel employees, who have their own Minimum Wages in the Hotel Industry Decree of 2025.

CyprusPermit is not a law firm or a government office. We explain the rules, run payroll for employers and handle the hiring paperwork; where the law requires a licensed employment agency, the agency signs that part.

The Statistical Service (CYSTAT) published on 19 October 2026 that in 2025:

• average gross monthly earnings of employees were €2,591, up 4.3% from €2,483 in 2024;
• the median was €1,953, up 3.8% from €1,881.

Half of employees earn less than the median, so it is a better guide to a typical salary than the average. For the first quarter of 2026 CYSTAT reports a provisional average of €2,601, 3.7% more than a year earlier. These figures are before social insurance and include allowances, overtime and bonuses such as a 13th salary. Pay varies widely by sector.

The employer withholds three things from an employee's gross pay:

• Social insurance, 8.8% of earnings up to the 2026 ceiling of €5,742 a month.
• GESY (national health system), 2.65%, on income up to €180,000 a year.
• Income tax under PAYE, using the 2026 bands: 0% up to €22,000 of taxable income a year, 20% from €22,001 to €32,000, 25% to €42,000, 30% to €72,000 and 35% above €72,000.

Contributions and some allowances reduce taxable income, and new residents may qualify for a 20% or 50% exemption on employment income. That is why two people with the same gross pay can take home different amounts.

A full-time employee on €1,088 a month with 12 salaries earns €13,056 a year, below the €22,000 tax-free band, so no income tax is due. Deductions are social insurance €95.74 (8.8%) and GESY €28.83 (2.65%). Take-home pay is about €963 a month. This is a rough estimate from the official rates; use the net salary calculator for your own figures, including 13 salaries and tax exemptions.

Two more examples for a full-time employee who is tax resident in 2026, with no exemption and no other deduction. They match the net salary calculator.

€45,000 a year.

• Social insurance 8.8%: €3,960. GESY 2.65%: €1,192.50.
• Taxable income: €45,000 − €5,152.50 = €39,847.50.
• Income tax: 20% × €10,000 = €2,000, plus 25% × €7,847.50 = €1,961.88. Total €3,961.88.
• Net: €35,885.63 a year, about €2,990 a month over 12 salaries.

€60,000 a year.

• Social insurance: €5,280. GESY: €1,590.
• Taxable income: €60,000 − €6,870 = €53,130.
• Income tax: €2,000 + €2,500 (25% of €10,000) + €3,339 (30% of €11,130) = €7,839.
• Net: €45,291 a year, about €3,774 a month.

A new resident who qualifies for the 20% exemption (up to €8,550 a year) on the €60,000 salary would have €8,550 less taxable income and pay €5,274 income tax instead of €7,839.

A payslip should show, line by line:

• gross pay for the month, with any overtime, allowances or bonus shown separately;
• social insurance withheld from you (8.8%, up to the monthly ceiling);
• GESY withheld from you (2.65%);
• income tax (PAYE), which is zero if your expected yearly taxable income stays within the €22,000 band;
• net pay transferred to your account.

The minimum wage is set as a monthly amount for full-time work; for part-time work, compare your pay with the full-time rate scaled to your hours. If the figures do not add up, ask the employer for the calculation in writing before raising it with the Labour Inspectorate.

On top of gross pay the employer contributes 8.8% social insurance, 2.9% GESY, 1.2% to the Redundancy Fund, 0.5% to the Human Resource Development Fund and 2% to the Social Cohesion Fund, and 8% to the Central Holiday Fund unless exempt. The employer must register with the Social Insurance Services before hiring, notify each hire in ERGANI at least one day before the start, pay contributions by the end of the following month and pay withheld tax (PAYE) monthly, by the end of the following month, and file the annual TD7 return.

• Paying €979 after the employee has passed six months with you; the €1,088 rate then applies.
• Comparing a job offer with the average instead of the median.
• Forgetting that a 13th salary changes the monthly figure, not the annual total.
• Budgeting only gross salary: employer contributions add a significant share.
• Hiring before the employer registration and ERGANI notice are done.

If you are hiring your first employees in Cyprus, our payroll service and employment contracts page explain how we handle it for you. Hiring from outside the EU also needs a work permit. Figures checked on 24 October 2026 against the sources below.