Table of content:
- Introduction
- Definitions
- Responsibilities
- Minimum Salary
- Payments
- Working hours
- Deductions from employers
- Conditions for deduction
- Social Insurance payment
- Monthly contributions
- Registration
- Employee Deductions
- Percentages
- List of deductions
- Employer Contribution
- Chart with calculations
- Additional Costs
- Extra costs
- Entitlement for expenses of additional costs
- Conclusion
- Contact info
- Recommendations for further assistance
Personnel classified as domestic workers play a pivotal role in the private household or homes, contributing significantly to the care economy. Their responsibilities encompass both direct and indirect care services, reflecting their crucial impact on the well-being of individuals and families within a domestic setting.
What is the minimum salary for domestic workers in Cyprus?
It is crucial to comprehend the regulations governing domestic workers’ employment in Cyprus, where their rights and compensation are governed. All third-country workers in this category, regardless of their country of origin, are entitled to a minimum wage salary.
The regulations stipulate that both the employer and the employee must enter into a fixed contract, guaranteeing a minimum gross salary of €460 per month. This wage structure is applicable to a standard six-day working week, with each day consisting of 7 work hours.
Even if the government sets a minimum wage, it is important to note that domestic employees are free to bargain for a greater wage as long as it does not dip below the minimum wage.
What deductions can employers make?
Employers are permitted to make deductions from the employee’s salary under specific conditions:
– 10% deduction for accommodation if the domestic worker resides in the employer’s house.
– 15% deduction for food expenses if the domestic worker resides in the employer’s house.
These deductions are calculated based on the monthly gross salary.
How much is the monthly social insurance payment for a domestic worker?
There are social insurance duties associated with hiring domestic help in Cyprus. Employers are obliged to register domestic workers, pay monthly contributions, and acquire an employer registration number from the Social Insurance Department.
The social insurance amount varies depending on the salary, but for the purpose of illustration, we’ll use the minimum salary of €460.
Employee Deductions:
– 8.3% for social insurance: €38.18
– 1.7% for Gesy: €7.82
– 25% for accommodation and food expenses: €115
Total Employee Deductions: 10% – €46
Employer Contributions:
– 8.3% for social insurance
– 1.85% for Gesy
– 1.2% for Redundancy funds
– 0.5% for Human Resource funds
– 2% for Social Cohesion Funds
Total Employer Contributions: 13.85% – €63.71
Therefore, €46 is deducted from the employee’s salary, while the employer pays €63.71 in contributions. The total monthly social insurance payment made by the employer amounts to €109.71.
For an employer of a third country national domestic worker whose contract provides the below gross earnings:
It is noted that there are cases of domestic workers who receive a higher gross earnings than the earnings below and in those cases the calculations will be analogous.
| Earnings Calculations: | ||
| Earnings | € | 460 |
| Total: | € | 460 |
| Contribution Calculations: | ||
| Contribution to Social Insurance Fund (8.3% employer and 8.3% employees = 16.6% of €460) | € | 76.36 |
| Contribution to Redundancy Fund (1.2% of €460) | € | 5.25 |
| Contribution to Human Resources Fun (0.5% of €460) | € | 2.3 |
| Contribution to Social Cohersion Fund (2% of €460) | € | 9.2 |
| Contribution to General Health System (1.85% employer + 1.7% employee= 3.55% of €460) | € | 16.33 |
| Total: | € | 109.71 |
For additional information you can click the link below:
https://www.mlsi.gov.cy/mlsi/sid/sidv2.nsf/All/E86DB36D4FB8D8B9C2258535002E24DE
Additional Costs
Employers of domestic workers are required to cover the travel costs for the employee’s arrival in Cyprus and provide a return ticket when the contract is terminated. However, if the employee travels back to their home country for annual leave holidays, the employer is not responsible for covering the flight ticket costs.
The intricate structure of wage and obligations for domestic workers in Cyprus involves a nuanced interplay of minimum wages, deductions, and social insurance. Both employers and employees need to navigate this framework to ensure a fair and compliant employment relationship, contributing to a work environment that respects the rights and well-being of domestic workers.
In conclusion, the intricate structure of remuneration and obligations for domestic workers in Cyprus involves a nuanced interplay of minimum wages, deductions, and social insurance. Both employers and employees need to navigate this framework to ensure a fair and compliant employment relationship, contributing to a work environment that respects the rights and well-being of domestic workers.
Rideo Group has curated this article to notify all new and existing domestic workers about their rights regarding employment regulation.
Furthermore, do not hesitate to contact us for further information about benefits, regulations, and employment contracts so we can further assist you.
Disclaimer: Although we work hard to deliver accurate and timely information, kindly take note that rules and laws are subject to regular change. It is advised that you speak with our consultants to ensure sure that the information displayed here is accurate and up-to-date.
