03/02/2026
🚨 2026 Payroll Update: Minimum Wage Hikes & New Tax Brackets: As of January 1st,2026 the payroll landscape in Cyprus has shifted. Are your systems updated?
There are significant changes to the National Minimum Wage and Personal Income Tax structures that directly impact your labour costs and compliance obligations.
Key Changes in Force Now: 📈 Minimum Wage Increase:
Upon Hiring: increased to €979 (from €900).
After 6 Months: increased to €1,088 (from €1,000). (Note: Exceptions apply for hotel, domestic, and agricultural sectors).
⚖️ Social Insurance Caps: The maximum insurable earnings ceiling has risen to €5,742/month (€68,904 annually). Ensure your deductions for high earners are adjusted immediately.
💰 Tax Reform (Good News for Talent): The tax-free threshold has officially moved to €22,000, with restructured brackets (20% up to €32k, 25% up to €42k). This means higher net disposable income for your team.
Action Required: Employers must update their payroll software and employment contracts immediately to reflect these statutory changes.
NEED HELP? Our HR & Payroll team is ready to review your compliance. 👉 Read the full breakdown here: https://lnkd.in/dDxnPs6b
Contact Us: 📞 +357 22 673800 📧 [email protected]