PEO in Cyprus | Hire Without An Entity | INS Global
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PEO in Cyprus

Hire Globally, Pay Locally, Expand Effortlessly

INS Global is a provider of global Human Resources outsourcing services. With our PEO, you can skip the hassle that comes with traditional recruitment methods and hire talented employees in over 80 countries worldwide.

A Professional Employer Organization (PEO), like an Employer of Record (EOR), assists companies that want to expand into a new country without establishing a separate legal entity.

Our PEO takes care of essential HR tasks, from employing overseas staff to managing employee services and handling payroll, reducing costs and time by not managing local procedures on your own.

Want to have a Team in Cyrpus TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in Cyprus TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in Cyprus - Summary

What Advantages Does a PEO Give You?

Certified Legal Compliance

With the expert guidance of a PEO, you can be confident of legal compliance at every step of the transition process.

Decrease Set Up Time and Costs

HR issues can often lead to a high number of fees and fines; a PEO helps you prevent these misunderstandings and save you possibly hundreds of dollars.

Focus on Business Growth

You won’t have to worry about time-consuming functions like headhunting, payroll outsourcing, or contractor management, so you can focus on achieving your company’s goals.

Fast Market Entry

It can take 4-12 months to complete company incorporation a new country.

With a PEO, the time is shortened to just 2-5 days.

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Structural Streamlining

A PEO in the target market will handle all of your HR needs with just a single point of contact.

How is a PEO is Better Than Company Incorporation in Cyprus?

A Global PEO navigates complex legal processes for you and keeps you from encountering any obstacles by operating as a legal intermediary for all your HR needs.

A PEO:
  • Reduces time spent in company setup
  • Decreases costs and overheads
  • Avoids potential administrative or legal pitfalls
  • Makes the most of local resources
Hiring an Overseas Employee

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How Does Our PEO in Cyprus Operate?

INS Global’s PEO in Cyprus can be used to manage your employee recruitment needs in just 4 steps:

  1. We meet with you to understand your requirements and create a plan that satisfies your needs.
  2. Our team provides a legal entity through which you can hire, transfer, or send staff to Cyprus.
  3. We take care of HR service administrative and legal aspects related to employment in Cyprus
  4. Your team is able to continue operations and work towards success in the new market.

What's the Difference Between a PEO and an Employer of record (EOR): How Do They Differ?

To make the most of a PEO agreement, you need to understand the difference between PEOs and EORs. This way, you’ll be able to choose the best for your business needs:

  • A PEO provides HR outsourcing services to employees in companies that want to expand globally.
  • An EOR is similar to a PEO but can also legally and officially hire employees on behalf of your company.
  • An EOR is responsible for all liabilities regarding onboarding and employment.
  • In a PEO agreement, the contract is between your company and the employee.
  • In an EOR agreement, the contract is directed by your company but made between the EOR and your employee.

INS Global offers both Professional Employer Organization and Employer of Record services in Cyprus. Contact our team of experts today, or read this article to learn more about the specifics of these two services.

Labor Law in Cyprus

Employment Contracts in Cyprus

In Cyprus, employment contracts are not mandatory, but the terms of employment must be given in written form. The salary and benefits should be in Euros and the contract should be in the local language. Collective bargaining agreements (CBAs) are common practice in Cyprus and have an impact on employee wages and regulations.

Probation can last for six months, during which time the employee can be dismissed without cause. 
Outside of the probation period, termination notices depend on the length of employment.

Working Hours and Overtime in Cyprus

Work hours in Cyprus, including overtime, cannot exceed 48 hours per week.

Overtime is compensated at 150% of regular wages and 200% if the overtime hours are on the weekend.

Annual Leave and Public Holidays in Cyprus

There are 14 days of public holidays each year in Cyprus. Employees who have worked for six months are eligible for a minimum of 4 weeks of paid vacation time.

Those who work five-day weeks are entitled to at least 20 days of paid leave; the number of days increases to 24 for those who work six-day work weeks.

Sick Leave in Cyprus

Sick leave in Cyprus is paid by social insurance but is not covered for the first three days. Depending on the applicable CBA, an employer may agree to pay the employee a percentage of wages during those three days.

Afterward, the employee should apply for social insurance and can receive 60% of their weekly salary for up to 156 days.

Maternity and Paternity Leave in Cyprus

Maternity leave in Cyprus is 18 weeks, and is covered by the state. The mother will receive 72% of her regular salary. Mothers returning to work are eligible for one hour less work daily during the first nine months after birth.

Paid paternity leave is 2 weeks. Parents with children under 8 years old are entitled to 18 weeks of unpaid leave annually. In the case of a widow or widower, this number is increased to 23 weeks.

Tax Law and Social Security Contributions in Cyprus

Income tax in Cyprus ranges from 0-35%, depending on taxable annual income. Corporate tax is 12.5%.
Both employers and employees are expected to pay 8.3% towards social insurance, as shown here:
splcy.com/social-insurance-contributions-and-national-health-insurance-system-cyprus

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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