Statutory and legislative payroll changes in Cyprus, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Tax-free threshold rises to €22,000 under 2026 tax reform
Effective 1 Jan 2026
As of 1 January 2026, new personal income tax bands apply: 0% up to €22,000 (previously €19,500), 20% on €22,001-€32,000, 25% on €32,001-€42,000, 30% on €42,001-€72,000 and 35% above €72,000.
For the employer
- Load the 2026 PAYE bands into payroll software from the January 2026 pay run.
For the employee
- Most employees see lower tax withholding from 2026 because of the higher tax-free threshold.
Source: PwC Worldwide Tax Summaries - Cyprus, Taxes on personal income · Last verified 1 October 2026
Minimum wage rises to €979 on hire and €1,088 after six months
Effective 1 Jan 2026
From 1 January 2026, the national minimum wage rises to €979 gross a month upon recruitment (from €900) and €1,088 gross after six months of continuous employment with the same employer (from €1,000).
For the employer
- Raise new hires to at least €979/month, and employees past six months' continuous service to at least €1,088/month, from January 2026.
For the employee
- The minimum rises by €79 on hire and €88 after six months.
Source: RSM Cyprus - Cyprus minimum wage 2026: new rates and increases · Last verified 1 October 2026