IMPACT — MEDIUM

The government of Cyprus announced that it will increase its national minimum wage in January 2023.

Key Points:

  • Cyprus’ monthly national minimum wage will increase by €16, from €924 to €940.
  • The new minimum wage will take effect Jan. 1, 2023.
  • The monthly minimum wage will be €885 for an individual’s first six months of employment and increased to €940 if the employee stays at the company.
  • Benefits cannot be included when calculating minimum salary requirements.

Additional Information: The minimum wage is relevant to all workers in Cyprus, whose wages cannot be lower than the minimum wage. Foreign workers must be paid above the minimum wage.

BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2023 budgets.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.

The government of Cyprus has updated its work rights for foreign students.

Key Points:

  • Foreign students are allowed to work in certain industries in Cyprus for up to 20 hours per week when school is in session and up to 38 hours during school breaks if they:
    • Are enrolled at government-recognized universities or university programs in Cyprus.
    • Are a full-time student.
    • Have lived in Cyprus since Jan. 31, 2022.
  • Foreign students can only work in specific positions within certain industries, including health and social care, manufacturing, food industries and hotels, among others.

BAL Analysis: Authorities in Cyprus updated their work rights for foreign students with intent to safeguard their work rights while limiting access to the labor market.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.

IMPACT – HIGH

Cyprus has extended its initial travel and permit restrictions to mitigate the spread of COVID-19.

Key Points:

  • Until April 17, all passenger flights into Cyprus are prohibited.
  • The travel suspension does not apply to (1) cargo flights, (2) non-passenger flights to Cyprus to carry people out of the country, (3) flights of humanitarian nature, or (4) flights for emergency circumstances, provided the relevant authorities authorize the travel.
  • Alien employment approvals will occur automatically and will be active for one year, so it is not necessary to send applications. Approvals will be sent to employers as well. An extension of current foreign employment contracts will be granted until the approval that will be sent has expired.

Analysis & Comments: Cyprus implemented travel and permit restrictions last month, which were initially in force until April 4. The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

IMPACT – HIGH

Cyprus recently announced travel and permit restrictions to mitigate the spread of COVID-19.

Key points:

  • Until April 4, all passenger flights into Cyprus are prohibited.
  • The travel suspension does not apply to cargo flights, non-passenger flights to Cyprus, flights of a humanitarian nature or flights for emergency circumstances.
  • Residence permit applications and renewals are not being accepted for the time being, except in the event of great urgency. A suspension is also in effect on the granting of all entry permits.
  • Alien employment approvals will occur automatically and will be active for one year, so it is not necessary to send applications. The approvals will be sent to employers as well. An extension of current foreign employment contracts will be granted until the approval that will be sent has expired.

Additional information: Within Cyprus, a wide range of containment measures have been implemented, such as closing parks, playgrounds, athletic fields and spaces for open markets. Non-essential movement has been halted until April 13.

Analysis & Comments: The new travel and permit restrictions will impact the movement of people into Cyprus for the time being. Employers should account for affected travelers and rearrange travel schedules accordingly. Significant delays may occur for consular and in-country processing.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication