The Cyprus payroll cycle is monthly. Employers are required to pay employees their net salary and to remit income tax withheld under the PAYE system, social insurance contributions, and GeSY contributions to the respective authorities within the deadlines set each month. Social insurance and GeSY contributions are filed and paid monthly to the Social Insurance Services. Income tax deducted under PAYE is remitted to the Cyprus Tax Department, also on a monthly basis. Employers who fail to remit on time are subject to interest and penalties.
Payroll processing in Cyprus requires the employer to maintain accurate records of each employee's gross salary, statutory deductions, social insurance insurable earnings, and GeSY contributions. Employers must issue payslips and maintain payroll registers available for inspection. At the end of each tax year, the employer submits an annual employer return (IR7) reconciling total emoluments and taxes deducted across the year.
New hires must be registered with the Social Insurance Services before their first day of work. The registration requires the employee's identity card or passport number, job title, and start date. For employers managing a workforce of non-Cypriot nationals, additional compliance steps apply at the immigration and work permit level before payroll registration can be completed.