Cyprus
[Updated 8/27/25] The only mandatory benefit in Cyprus is workers’ compensation, which is a split contribution plan between the employer and employee, administered by the employer or through a payroll provider, with no broker involvement.
According to market practice and due to the imperfect coverage provided by the social security scheme, multinational companies and a significant number of domestic enterprises offer employee benefits (life/disability/medical) plans to their employees.
Country Insight
Mandatory Employee Benefits in Cyprus
Workers’ Compensation
Social security contributions total 22.8%, split between the employer (8.8%), the employee (8.8%), and the state (5.2%).
Benefits
- Marriage grant (abolished for weddings that took place on 1/1/2013 and thereafter)
- Maternity grant
- Funeral grant
- Maternity allowance
- Sickness benefit
- Unemployment benefit
- Invalidity pension
- Old-age pension
- Widow’s pension
- Orphan’s benefit
- Missing person’s allowance
- Employment injury benefit, which includes:
- Temporary incapacity (injury benefit
- Disability benefit
- Death benefit
Supplementary Employee Benefits in Cyprus
Retirement
Typically provided through a single or multi-employer provident fund.
- The plans are in the form of defined contribution schemes.
- Vesting tables may apply.
- Nonvested balances are, by law, distributed to the remaining members.
- Insurer’s fund management and policy administration fees are, as per market practice, covered by the employer.
- Benefit is typically paid as a lump sum and can be transferred to another group pension plan.
Healthcare
Group EB schemes. Such schemes offer coverage for inpatient and outpatient services in private clinics/hospitals, diagnostic centers, and doctors’ offices, as well as pharmacy expenses. Further benefits, such as dental, optical, checkup, maternity, hospital, and surgical cash benefits, can also be included in the table of benefits. According to market practice, the employer pays 100% of the insurance costs for employees. Dependents’ insurance cost is covered at 100% by the employees, except for big multinationals that may also cover the cost of dependents at 100%.
Life Insurance
The primary rider is life insurance, specifically ‘death by any cause’ (including illness and accident).
Additional riders:
- Permanent total disability due to illness
- Death due to accident (combined benefit with life insurance)
- Permanent total disability due to an accident
- Permanent partial disability due to accident (% of the insured amount, continental scale)
- Short-term disability (loss of income) as a % of salary or flat insured amount.
The coverage is available on a 24/7, worldwide basis.
According to standard market practice, employers are responsible for 100% of the insurance costs for their employees. Dependents are not eligible for these benefits.
Travel Health Insurance
This is commonly provided as a standalone policy and is typically requested by companies that frequently have employees who travel for business. Travel policies are mainly focused on the medical part. They also include coverage for lost or stolen luggage, trip cancellation, and personal liability.
The insurance policies provide coverage for accidents and unexpected illnesses. For an additional cost, they may also offer coverage for pre-existing conditions.
This information about employee benefits in Cyprus is provided by GrECo Group, Asinta’s employee benefits consulting partner in Cyprus.