P. Constantinou & Co Ltd is an Audit, Tax & Consulting firm based in Limassol, Cyprus, offering a full range of professional services.
Specifically, the law mentions the following obligations of an employer regarding:
How to pay salaries
The employer pays the employee’s salary to a bank or payment account of the employee’s choice, or by bank check in the name of the employee.
Salary payments in cash are allowed:
- In cases of persons for whom the completion of the process of opening a bank or payment account is pending. The employer may pay the salary in cash, for a period not exceeding four months from the date of recruitment of the employee
- In cases of persons where the request to open a payment account is rejected for any reason, the employer may continue to pay the salary in cash, provided that the employer submits to the Director of the Department of Labor Relations of the Ministry of Labor and Social Insurance a relevant certificate from the credit institution that rejected the employee’s application to open a bank account
- The salary may be paid in cash, provided that the employer pays the salary on a weekly basis and has entered into a collective agreement or other written agreement with the employee, which provides that the payment of the salary may be made on a weekly basis
In the case of a written agreement or collective agreement, the following will apply:
- The Agreement must bear the signatures and the names of the employer and the employee in full
- The collective agreement or written agreement must be sent within fifteen calendar days from the date of a relevant request of an Inspector or other officer of the Department of Labor Relations of the Ministry of Labor and Social Insurance
Payslip
All employers are obliged to:
- Toissueasalarystatement (payslip)
- Provide the employee with a copy of the payroll payslip, in paper or electronically, within five working days from the date of payment of the salary, for which he keeps proof of transmission or receipt by the employee
- Keep a record of payroll payslips. This file must be sent within fifteen calendar days from the date of a relevant request of an Inspector or other officer of the Department of Labor Relations of the Ministry of Labor and Social Insurance
Payroll payslip details
The minimum data included in the weekly or monthly payslip for the payment of salary are the following:
Identity data of the employer and employee:
- Name and surname
- Address
- Identity
- Social insurance number or employer registration number
- Date of payment
- Period to which the payment relates
Details of the payment:
- Basic salary by reference to the number of hours worked per week
- Overtime payment with reference to the number of overtime hours and how to calculate overtime compensation
- Any other payments
Employee contributions:
- Social Insurance Fund
- General Health System (GESY)
- Other contributions that may be provided for by law or regulation or a written agreement or collective agreement
Employer’s contributions:
- Social Insurance Fund
- Social Cohesion Fund
- Redundancy Fund
- Human Resource Development Fund
- General Health System (GESY)
- Other contributions that may be provided for by law or regulation or a written agreement or collective agreement
Elements to be included if applicable:
- Cost of Living Allowance (COLA – ATA)
- commissions
- 13th salary
- 14th salary
- Travel allowance
- Contributions to the Central annual leave Fund
- Employer’s and/or employee’s contributions to the Provident Fund
File and records keeping
The employer is obliged to keep records of all the above for each employee for a period not exceeding six years and must be available for inspection by an Inspector or other officer of the Department of Labor Relations of the Ministry of Labor and Social Insurance.
Violation of the Law
In the event that a criminal offence is committed by a legal person or organization and it is proved either that it has been committed with the consent or complicity of a natural person, who at the time of the commission of the criminal offence holds the position of adviser, president, director, secretary or other similar position in the legal person or appears to be acting in that capacity, then the person or persons who have committed this offence are subject, if convicted, to the penalty provided for by law for that offence.
Reminder about the minimum wage
We remind you that with effect from January 1, 2023, all employees who work full-time must receive an initial monthly salary of at least €885 gross, and after a 6-month of continuous period of employment with the same employer this salary must be increased to at least €940, gross.
