1. Definition of posted worker
2. Working Time
3. Remuneration
In Cyprus there are no universally applicable collective agreements regulating rates of pay in separate economical activities.
Minimum Wage
a. Minimum Wage Order
Τhe national minimum wage is determined by the Minimum Wage Orders of 2022 and 2023. According to the Orders:
a) Every employee who works full-time must receive an initial monthly wage of at least €1.000 gross. Employees who either before January 1, 2024 or after January 1, 2024 have not completed six (6) months of continuous employment with the same employer, from January 1, 2024 must receive a monthly salary of at least €900 gross for full-time work, until completion six (6) months of continuous employment.
b) The working hours of the employees must be those that were applied at the time that the Order came into force, as determined either by collective agreement, or by a written agreement between the employer and the employee.
c) The provisions of this Order do not apply to domestic workers, the workers in agricultural and animal farming workers and seamen, as well as to workers to whom the Minimum Wages in the Hotel Industry Order of 2023 applies.
d) Α readjustment mechanism is instituted and it will be operating every two years, beginning from 2024.
b. Minimum Wage for Hotel Employees
The duties of each occupational category within a hotel are defined by the title of the worker's occupation as well as the traditional and standard practice of the duties in the hotel industry.
The minimum wages mentioned below include the sliding scale and the service entitlement in addition to the basic wage. However, they do not include any other benefit to the worker or benefit in cash for work on a compulsory rest day (6th day).
The minimum monthly wages in the hotel industry relate to 38 hours per week on a 5 day basis, and they are the following:
Frequency of Payments
According to the Protection of the Wages Laws of 2007 and 2012, wages must be paid at least weekly or monthly, depending on the agreement between the employer and employee. Any delay of the agreed and expected time of payment is considered a violation of the Law.
In such cases, the employee can submit a written complaint to the Department of Labour Relations. The Department investigates the complaint and tries to solve the dispute. If the dispute is not settled, the Department of Labour Relations has the jurisdiction to proceed with criminal proceedings against the employer.
Note that the Law does not oblige the employer to pay the monthly salaries every first of each month.
Overtime Work Payment
Overtime work must be compensated at a rate of at least 1:1, and it must be stated in writing in the contract of employment. In case of a different agreement, through a collective agreement or personal contract, for overtime work, then this is compensated as agreed.
If overtime is included in the total amount of the agreed salary, the extra hours must be defined.
For shop, hotel and catering services/establishments employees, overtime is determined by relevant applicable legislation.
Commission
In case there is an agreement, either collective or individual, between the employer and the employee, for a standard monthly commission, then this is considered as part of the salary and it is mandatory to be paid.
Note that, since the commission is part of the salary this agreement, cannot be changed by the employer without the employee’s consent.
It is stressed that any commission should be set in writing in the terms of employment.
Salary Raise
Salary raises are not regulated by any legislation. If there is a collective agreement or any other in written agreement, which binds the employer to make certain increases, then he/she must provide them. Otherwise, it is at the discretion of the employer if, when and the amount of the raise he/she will provide.
Deduction of Wages
Deductions from wages are permitted only under certain conditions and always to the extent deemed necessary for the support of the employee and his family.
Deductions that can be made from wages are the following:
- • deductions prescribed by laws and regulations (social insurance, inland revenue, etc.);
- • deductions in accordance with regulations for retirement, provident and medical funds;
- • deductions prescribed by Court rulings;
- • deductions for the reimbursement of damage or loss to the employer are only authorized if they were caused intentionally or due to severe negligence on behalf of the employee
- • deductions provided for by a collective agreement or general agreement between employers' organizations and employees representatives, for employees to whom they apply.
- • other deductions following the employee’s written and signed consent.
According to the Protection of Wages Law, any deductions made from the salary, due to damages suffered by the company, either intentionally or because of serious negligence, must take place after consultation with the employee representatives or the employee himself/herself, to determine the amount of compensation and how it shall be paid.
In general, salary deductions should be limited to the extent that the employee can support himself/herself and his/her family.
Penalties
Breach of the Protection of Wages Law by the employer constitutes a criminal offence and is subject to a sentence of up to 6 months imprisonment or a fine up €15.000 or both. The Court, in addition to the penalties provided above, may also issue an Order for the payment of the amount owed to the employee.
4. Termination of employment
5. Process for the submission of complaints for citizens of Cyprus and of Member States
6. Procedure for the submission of a complaint for employees from non-EU nationals
