Cyprus is an amazing country full of beautiful beaches, historical places to visit, warm sunshine for most of the year which entices tourists to visit and return time and time again. European Union (EU) Citizens that fall in love with Cyprus and want to move permanently may need to seek employment.
The employment market in the Republic of Cyprus is buoyant, whether you are a newly qualified graduate or a professional in your country there are ample opportunities with emerging companies looking for skilled workers as well as those taking their first steps on the ladder.
Cyprus offers employment in all sectors, especially from the leisure industry such as:
- Hotels;
- Restaurants;
- Retail establishments;
- Tourist places etc.
The opportunities for EU Citizens working in Cyprus are favourable, whether a person wants full or part time work depending on your circumstances, work/life balance is important, just imagine finishing work and going to the beach for an early evening swim or a walk around the tropical countryside.
Citizens of the EU are allowed to travel, live and undertake paid employment within the Republic of Cyprus and without any restrictions.
The EU adopted a series of Community Regulations and Directives, securing the right of nationals of all member states for free access in the labour market and equal treatment. The Republic of Cyprus applied for the free movement of workers within Europe on the 1st May 2004.
The Laws that apply for all foreign nationals working in Cyprus must mirror those for Cypriot Nationals, the same terms and conditions of employment required by the Ministry of Labour Welfare and Social Insurance.
An application for the issue of a Registration Certificate requires submission by the EU Citizen within 4 months from the date of entry into Cyprus. The process for applying is via form MEU1 and requires the following documentation to be submitted:
- Copy of Valid Passport or ID Card;
- Certificate of Employment or Confirmation of Engagement by the employer;
- Two Passport Size photographs – these are now captured during the application submission process;
- Application fee (Rideo Group will advise at the time of application).
The completed form must then be submitted in person to the Civil Registry and Migration Department. Family members of the applicant who are also EU Citizens are also allowed to make an application if they choose to live together in Cyprus.
It is compulsory for all EU Citizens that plan to work in Cyprus to contribute to the Social Insurance Scheme. The scheme is for both employed and self-employed persons, contributions are earnings related and payable by the employer and employee. Contribution rates will be advised by one of our colleagues at Rideo Group if required. The benefits of the scheme include:
- Maternity Grant;
- Maternity Allowance;
- Sickness Benefit;
- Unemployment Benefit;
- Funeral Grant;
- Old Age Pension;
- Widows Pension;
- Invalidity Pension;
- Widow’s Pension;
- Orphan’s Benefit;
- Injury Benefit;
- Disablement Benefit;
- Death Benefit.
Each employer must register with the “Employers Register of the Social Insurance Services” by applying using form SIS 1-001 (Application for Registration of Employer) and submitting it to the Social District Office or Citizen Service Centre. Where there are multiple branches in other districts then applications are required at each one, upon confirmation of registration the employer will receive a number which will be used for the purpose of payment of contributions/communication between the employer and Social Insurance Services.
Employers are obliged to provide the employee (prior to employment) with the form SIS 5-018 (Certificate of Commencement of Employment), a copy to be kept by the employer and one to be sent to the Social Insurance Services for each employee. In addition to the above the employer must complete form SIS 1-003 (Declaration of Hiring Employees) for new employees and submit the completed document to the Social District Office or Citizen Service Centre, together with form SIS 2-002 (Statement of Earnings and Contributions). Form SIS 2-002 to be completed by the employer each month and sent to the Social Insurance District Office for contributions.
Employers are liable to pay contributions for each employee up to the age of 65 to the Social Insurance Fund covering annual Holidays, redundancy, pension etc.
As mentioned earlier the employee must be registered for Social Insurance but if that is not the case then the employer must undertake this on their behalf using form SIS 1-008 (Application for Registration of an Employed Person) prior to the start of employment.
Employers must for each employee keep a record of inspection by a Social Insurance Inspector for verification of the following:
- Full Name;
- Earnings – Weekly or Monthly;
- Identification Number and Social Insurance Number;
- Date of commencement of employment;
- Date of termination of employment;
- Date and duration of annual leave.
It must be noted that if an employer fails to pay contributions, non-compliance arising from legislation, guilty of an offence may be liable to a conviction through a fine or imprisonment.
The different categories of employee ranges from:
- Highly skilled personnel employed by companies with a turnover of more than hundreds of thousands to over a million euros;
- Executive Directors;
- Consulting Directors or Partners;
- General Managers;
- Department Managers.
- Middle-Management and other personnel working in companies with foreign activities;
- Executive Staff;
- Non executive Directors;
- Key support staff;
- Clerical or Technical personnel.
- Athletes and coaches of individual or team sports;
- General skilled employees;
- Professional;
- Managerial;
- Clerical.
- General unskilled employees;
- Agricultural;
- Hotel assistants;
- Catering assistants;
- Retail staff etc.
- Religious Icon painters.
Rideo Group has a dedicated team, highly experienced in all aspects of employer/employee interaction. We are focused on assisting both parties in the smooth transition of the employment process. Please don’t hesitate in contacting one of the team to see how we can support your needs.
