Cyprus Salary Calculator 2026
Convert gross to net pay in Cyprus, with Social Insurance, GeSY and the reformed 2026 income tax, including the 13th salary.
Income Tax 2026 (annual)
Contributions 2026
Key Figures 2026
How net pay is worked out in Cyprus
Your employer deducts Social Insurance, the GeSY healthcare contribution and income tax (PAYE) from gross pay and pays them over to the Social Insurance Services and the Tax Department.
Social Insurance and GeSY
Employees pay 8.8% Social Insurance on earnings up to 5,742 € a month, or 68,904 € a year. On top of that comes 2.65% for GeSY, the General Healthcare System (GHS), on earnings up to 180,000 € a year. Both also apply to the 13th salary.
Income tax after the 2026 reform
The 2026 tax reform raised the tax-free band to 22,000 € a year. Above it, the rates are 20% up to 32,000 €, 25% up to 42,000 €, 30% up to 72,000 € and 35% beyond that. Tax is worked out on annual income after your Social Insurance and GeSY contributions (deductible up to one fifth of income). Each parent then deducts 1,000 € for the first child, 1,250 € for the second and 1,500 € for each further child (double for single parents), plus up to 2,000 € of rent or mortgage interest on the main home. These deductions need gross family income of no more than 100,000 € (up to two children), 150,000 € (three or four) or 200,000 € (five or more), or 40,000 € for a single person.
13th salary and new residents
Many contracts include a 13th salary, usually paid in December, although the law does not require one in the private sector. With the option ticked, annual income is 13 times the monthly salary and deductions are spread evenly over the 13 payments. For a first job in Cyprus after living abroad, 20% of pay is exempt (up to 8,550 € a year) for seven years, or 50% for 17 years if pay exceeds 55,000 € a year.
Example: 2,600 € gross with a 13th salary
Annual pay is 33,800 €. Social Insurance takes 228.80 € per payment and GeSY 68.90 €. Taxable income is 29,929.90 €, so tax is 20% of the 7,929.90 € above the tax-free band: 1,585.98 € a year, or 122.00 € per payment. Net pay is 2,180.30 € (28,343.92 € a year). The employer adds 400.40 €, for a total cost of 3,000.40 € a month.
What the employer pays, and what is not covered
On top of gross pay, the employer pays 8.8% Social Insurance, 2.9% GeSY, 2% to the Social Cohesion Fund, 1.2% to the Redundancy Fund and 0.5% to the HRDA. Not covered: the Central Holiday Fund (8%, only for employers not exempt from it), provident funds and life insurance, the 25% exemption for returning Cypriots, green-investment deductions, overtime, bonuses and benefits in kind. Income limits are checked against your salary alone, not your family's.
Frequently Asked Questions
How much income tax do I pay in Cyprus in 2026?
The first 22,000 € of taxable income a year is tax-free. Above that the rates are 20% up to 32,000 €, 25% up to 42,000 €, 30% up to 72,000 € and 35% above 72,000 €. Taxable income is your gross pay minus Social Insurance and GeSY, so an employee with no other deductions pays no tax up to about 24,845 € gross a year.
How much are Social Insurance and GeSY deductions?
Employees pay 8.8% Social Insurance on earnings up to 5,742 € a month (68,904 € a year) and 2.65% to GeSY, the General Healthcare System, on earnings up to 180,000 € a year. Together that is 11.45% of gross pay for most salaries.
Is the 13th salary taxed?
Yes. The 13th salary is ordinary employment income, subject to Social Insurance, GeSY and income tax. It is not required by law in the private sector, but many employment contracts and collective agreements include it. Because tax is worked out on your annual income, a 13th salary can push part of your pay into a higher band.
What is the minimum wage in Cyprus in 2026?
From 1 January 2026 the national minimum wage is 1,088 € gross a month after six months with the same employer, and 979 € during the first six months. At 1,088 € no income tax is due, and net pay is 963.42 €.
What are the 20% and 50% exemptions for new residents?
If you take up your first employment in Cyprus after living abroad, 20% of your pay is exempt from income tax, up to 8,550 € a year, for seven years. That applies if you were not resident for at least three years before and worked for a foreign employer. If your pay is over 55,000 € a year and you were not resident for at least 15 years, 50% of it is exempt for 17 years instead.
What does the employer pay on top of gross salary?
About 15.4% on top: 8.8% Social Insurance, 2.9% GeSY, 2% to the Social Cohesion Fund, 1.2% to the Redundancy Fund and 0.5% to the Human Resource Development Authority (HRDA). Employers that are not exempt from the Central Holiday Fund also pay 8% to it.