Steps and timeline
- 1before hiring
Employer registration
Register in the Register of Employers of Social Insurance Services with form YKA 01-001 at the district office, before you recruit anyone. You get an employer number for all contributions.
- 21 day before start
Notify each hire
Report every new employee through the ERGANI system no later than one day before they start; paper declarations ended on 13 September 2021.
- 3monthly
Monthly run
Payslips, with employee social insurance (8.8%), GESY (2.65%) and PAYE income tax withheld from pay.
- 4by end of next month
File and pay
File the monthly TD7 on the Tax For All portal, then pay PAYE; PAYE and social insurance contributions are due by the end of the following month.
- 5yearly
Annual return
File the annual employer's return TD7, listing every employee with a valid Tax Identification Number.
How does payroll work in Cyprus?
Each month we work out pay, social insurance, GESY and PAYE income tax for each employee and issue payslips. Contributions and PAYE are paid by the end of the following month, after the monthly TD7 is filed. Each new hire is reported through ERGANI at least a day before they start.
What does an employer pay on top of salary in Cyprus?
Social insurance 8.8%, GESY 2.9%, the redundancy fund 1.2%, the training fund 0.5% and the social cohesion fund 2%. Most contributions stop at the ceiling of €68,904 a year. We run these numbers on every payslip, and our company cost planner adds them up for any salary.
Documents
Documents
Official forms: T.D.59A (T.D.59) · how to fill it in, General contract · how to fill it in, ΥΚΑ 1-008 (Y.K.A. 1-008) · how to fill it in, ΥΚΑ 1-001 (Y.K.A. 1-001) · how to fill it in
The exact list depends on your situation; we confirm it before filing.
Who does what
What you do
- Share your situation and goals
- Collect documents from home
- Agree the scope of work in writing
What we do
- Check the requirements for your case
- Prepare the documents and file the application
- Follow up until the decision
Your coordinator
- Plans the work and next steps
- Keeps one timeline for everything
- Reminds you of renewals and deadlines
Common mistakes
- Hiring before registering as an employer with Social Insurance Services
- Notifying a new hire in ERGANI on or after the first day instead of at least one day before
- Trying to pay withheld tax before filing the monthly TD7
- Budgeting only for social insurance and GESY and forgetting the employer-only funds: redundancy 1.2%, training 0.5%, social cohesion 2% and holiday fund 8% unless exempt
- Employees on the TD7 without a valid TIN
What affects the cost
The price depends on your situation. We explain the scope and expected costs before work begins.
Questions
How much does an employer pay on top of salary in Cyprus?
Social insurance 8.8%, redundancy fund 1.2%, training fund 0.5%, social cohesion fund 2% and GESY 2.9%, plus 8% holiday fund if not exempt. Employees pay 8.8% social insurance and 2.65% GESY from their pay.
What is the maximum insurable salary in Cyprus in 2026?
€68,904 a year (€5,742 a month) for all funds except social cohesion. It is usually adjusted each January; GESY is capped separately at €180,000 a year.
When are payroll taxes and contributions due?
Social insurance contributions and PAYE are paid by the end of the month after the month they relate to. The monthly TD7 must be filed before the withheld amounts can be paid.
How do I register as an employer in Cyprus?
Submit form YKA 01-001 to your district Social Insurance office before recruiting, then notify each hire through ERGANI at least one day before the start.
Do I need payroll for one director?
Yes if the director is paid a salary. Employers with paid staff file the monthly and annual TD7 even when no tax is due; companies with no employees file none.
Sources
- Business in Cyprus: social insurance registration and contributions, checked 22 October 2026
- PwC Worldwide Tax Summaries: Cyprus social security and payroll taxes, checked 22 October 2026
- Tax Department: 2025 employer PAYE return extended to 30 November 2026, announcement of 16 September 2026 (in Greek), checked 28 October 2026
- Social Insurance Services: 2026 maximum insurable earnings €5,742 a month, checked 28 October 2026
- Social Insurance Services: Central Holiday Fund 8%, checked 28 October 2026
- Health Insurance Organisation: GHS financing and contribution rates
Figures checked 28 October 2026. Rules change: we confirm them for your case before you act.
