Cyprus 13th salary 2026: who gets it, when it’s paid, how it’s taxed
Updated May 2026
Photo: Jobs Nicosia
Updated May 2026. The Cyprus 13th salary is an extra month’s pay added to most employment contracts on the island — typically split between June and December. It is not a bonus and not a gift: where it appears in your contract or collective agreement, it is a legally enforceable wage. Below is the full 2026 picture — who gets it, exactly when, how it’s calculated, how it’s taxed, and what happens if you join or leave mid-year.
Key Takeaways
- The 13th salary in Cyprus is one extra month of base pay, normally paid in two halves — half before summer holidays (typically June) and half before Christmas (typically 15–20 December).
- It is not statutory by default — it is created by your individual employment contract, by company policy, or by a sector collective agreement (banks, hotels, retail, semi-government).
- Mid-year joiners and leavers are paid pro-rata, calculated by months (or full weeks) actually worked in the calendar year.
- The 13th salary is fully taxable as ordinary employment income and subject to social insurance, GeSY and PAYE — there is no special “bonus tax” treatment in Cyprus.
- About 72% of full-time Cyprus employees receive a 13th salary; some sectors (banking, hotels, semi-government) also pay a smaller 14th salary at Easter.
What is the 13th salary in Cyprus?
The 13th salary (Greek: δέκατος τρίτος μισθός) is one extra month of an employee’s base salary, paid annually on top of the twelve regular monthly wages. It is a legacy of the broader European tradition of seasonal pay supplements — common across Greece, Portugal, Spain, Italy, Austria and parts of Latin America — and in Cyprus has been embedded in the major collective agreements since the 1970s.
Crucially, “13th salary” in Cyprus does not refer to an annual performance bonus. It is contractual base pay, distributed across thirteen instalments rather than twelve. That distinction matters because it changes how the payment is taxed (ordinary income, no special treatment), how it accrues (pro-rata from day one of employment), and what happens if the employer simply doesn’t pay it (it is a recoverable wage debt, not a discretionary perk).
Is the 13th salary mandatory in Cyprus?
No — there is no general statute in Cyprus that requires every employer to pay a 13th salary. The obligation arises from one of three sources:
- The individual employment contract. If your contract specifies a 13th salary (or specifies an “annual salary payable in 13 instalments”), the payment is contractually owed.
- A registered collective agreement. Sectors with strong unions — banking (ETYK), hotels (OEX), retail (POVEK), semi-government and broadcasting — bind every employer covered by the agreement, regardless of the individual contract.
- Established custom or practice. Where an employer has paid a 13th salary consistently for years without explicit contractual reference, Cyprus labour case law has repeatedly held that the practice creates an implied contractual right.
If none of those three apply — for example, a small private employer that has never paid a 13th salary and whose contract is silent on the question — there is no obligation.
Which sectors pay it?
| Sector | 13th salary? | 14th salary? | Source of obligation |
|---|---|---|---|
| Banking (Cypriot & EU subsidiaries) | Yes — universal | Yes — Easter | ETYK collective agreement |
| Hotels (4★ and 5★) | Yes — universal | Partial | OEX collective agreement |
| Retail (large chains) | Yes — typical | No | POVEK collective agreement |
| Semi-government (CyTA, EAC, ports) | Yes | Yes | Sectoral agreement |
| Civil service | Yes | No (folded into base since 2013) | Public service law |
| Tech / fintech (Limassol) | Usually contractual | No | Individual contract |
| Construction | Often — varies | Rare | SEK / PEO collective agreements |
| Hospitality (independents) | Often | Rare | Custom & practice |
| Small private firms (no agreement) | Discretionary | No | Individual contract only |
The latest Cyprus Statistical Service earnings survey shows that approximately 72% of full-time employees in Cyprus receive a 13th salary, and roughly 11% also receive a 14th salary, almost entirely concentrated in banking and the unionised semi-government sector.
When is the 13th salary paid in Cyprus?
The standard payment pattern is in two halves:
- Half in June (typically the last working day before the summer-leave period) — sometimes called the “summer half”.
- Half before Christmas (typically 15–20 December, before the public-sector December bonus deadline) — the “Christmas half”.
Some sectors and individual employers vary this. Banks under the ETYK agreement pay the full 13th salary as a single lump in December. Hotels under OEX pay half in June and half in November (before the seasonal close-down). Many tech employers pay the full thirteenth in December as a single payment, treating it as a Christmas wage. The exact split should be specified in your contract or collective agreement; if it is silent, payment in two halves (June + December) is the legal default the courts have applied.
Watch out: An employer who insists on paying the 13th salary “if there is profit” is operating outside the law where a contract or collective agreement exists. In Cyprus the 13th salary is wage, not bonus — its payment is not conditional on employer profitability. Non-payment is recoverable through the Department of Labour Relations or the Industrial Disputes Court within six years.
How is the 13th salary calculated?
The base figure is one month of contractual gross pay, calculated on the salary in effect at the time of payment. So if you received a pay rise mid-year, the December half is calculated on the new (higher) monthly figure, not the old one.
For a full-year employee earning €2,500/month gross:
- Annual base pay (12 months): €30,000
- 13th salary: €2,500
- Total annual gross: €32,500
- Paid as: €1,250 in June + €1,250 in December
Pro-rata calculation for joiners and leavers
If you joined or left mid-year, the 13th salary is calculated proportionally to the time worked in the calendar year. The standard formula across the major collective agreements is:
13th salary owed = (monthly salary × full months worked in calendar year) ÷ 12
Example: an employee on €2,500/month who joined on 1 April 2026 has worked 9 full months by year-end. Their 2026 13th salary is (€2,500 × 9) ÷ 12 = €1,875, paid in December.
For employees who leave before year-end, the pro-rata 13th must be paid out as part of the final wage (the “final pay run”). Employers who omit it are exposed to a wage-debt claim with statutory interest.
How is the 13th salary taxed in Cyprus?
The 13th salary is fully taxable as ordinary employment income in the year it is paid. There is no special bonus rate, no flat tax, and no exemption. The full amount is added to your gross monthly pay in the month it is received, and the standard PAYE machinery (combined with annual reconciliation) applies.
Concretely, for the month in which the 13th salary half is paid you will see:
- Income tax (PAYE): applied at the marginal Cyprus rate. The first €19,500 of annual taxable income is tax-free. The next bands (€19,501–€28,000) are taxed at 20%; (€28,001–€36,300) at 25%; (€36,301–€60,000) at 30%; above €60,000 at 35%.
- Social insurance: 8.8% employee contribution, capped at the annual ceiling (€67,236 for 2026).
- GeSY: 2.65% employee contribution.
Because the deductions are applied to a doubled-up monthly gross, the take-home net of the bonus month often looks smaller as a percentage than a normal month. That is purely a payroll mechanic — your annual liability is identical to receiving the same gross over twelve equal months. Many large employers smooth this with the so-called “monthly accrual method”, deducting one-twelfth of the annual 13th-salary tax each month and reconciling at year-end.
14th salary, Easter pay, and other supplements
A small but meaningful slice of Cyprus employees receive a 14th salary, paid as a half-month at Easter and a half-month before Christmas (or as a single lump at Easter). It is concentrated in:
- Banking sector (ETYK agreement) — half-month at Easter, half-month with the 13th in December.
- Semi-government — varies by sectoral agreement.
- Civil service — folded into the base pay scale since the 2013 austerity reforms; not paid as a separate line.
Outside these sectors, the 14th salary is uncommon. It is identical in tax treatment to the 13th — fully taxable, social insurance and GeSY apply.
What happens if my employer doesn’t pay it?
If the 13th salary is owed (under contract, collective agreement, or established practice) and the employer fails to pay, the recovery routes in Cyprus are:
- Internal request in writing — start with a formal email or letter referencing the contract clause or collective agreement. Most disputes are resolved at this stage.
- Department of Labour Relations — file a complaint via the Ministry of Labour. Mediation typically begins within four to six weeks.
- Industrial Disputes Court — for amounts above €5,000 or where mediation fails, claims are filed at the specialist tribunal. The limitation period is six years.
Outcomes routinely favour the employee where the contractual basis is clear. Cypriot courts have repeatedly held that “discretionary 13th” language inserted retroactively does not override an established practice.
Frequently asked questions
Is the 13th salary mandatory in Cyprus?
No — there is no general statute requiring it. The 13th salary becomes mandatory only when it is specified in your individual employment contract, in a sector collective agreement (such as banking, hotels, retail, or semi-government), or where the employer has consistently paid it for years and an established practice has formed. Approximately 72% of full-time Cyprus employees receive a 13th salary, but the remainder do not.
When is the 13th salary paid in Cyprus?
The standard pattern is half in June (before the summer-leave period) and half in December (before Christmas). Banks typically pay the full 13th as a single lump in December. Hotels often pay half in June and half in November. The split should be specified in the contract or collective agreement; if silent, the legal default applied by Cypriot courts is two halves — June and December.
How is the 13th salary taxed in Cyprus?
The 13th salary is taxed as ordinary employment income — there is no special bonus rate. The standard income tax bands apply (zero up to €19,500; 20% to €28,000; 25% to €36,300; 30% to €60,000; 35% above). Social insurance (8.8% employee) and GeSY (2.65% employee) also apply. Many employers spread the tax impact across the year using the monthly accrual method.
Do I get a 13th salary if I joined mid-year?
Yes — pro-rata. The standard formula is (monthly salary × full months worked in the calendar year) ÷ 12. An employee earning €2,500/month who joined on 1 April has worked 9 months by year-end and is owed €1,875 in December. The same applies in reverse if you leave before year-end: the pro-rata amount is part of your final pay.
What is the difference between the 13th and 14th salary?
Both are extra months of base pay added on top of the regular twelve. The 13th is paid annually (typically split June + December). The 14th — paid by banks, parts of semi-government and a small group of unionised private sector employers — is a second extra month, normally split half at Easter and half in December. Both are fully taxable as employment income.
Can my employer refuse to pay the 13th salary if the company is loss-making?
No — where the 13th salary is contractual or covered by a collective agreement it is wage, not a discretionary bonus, and is not conditional on employer profitability. Non-payment creates a recoverable wage debt with statutory interest. The Department of Labour Relations is the first formal recourse; the Industrial Disputes Court handles unresolved claims.
Is the 13th salary the same as a Christmas bonus?
No. A Christmas bonus is discretionary additional pay outside contract terms, taxed as employment income but with no legal entitlement. The 13th salary is contractual base pay, distributed across thirteen instalments rather than twelve. The two can co-exist — for example, a tech employer paying a contractual 13th plus a discretionary year-end performance bonus — but they are legally distinct.
Sources
- Cyprus Ministry of Labour and Social Insurance — guidance on collective agreements and wage obligations.
- Cyprus Statistical Service (CyStat) — Earnings of Employees survey, 2025 release.
- ETYK (Cyprus Bank Employees Union) collective agreement, 2025–2027 cycle.
- OEX (Cyprus Hotel Employees Union) collective agreement, 2025–2027 cycle.
- Cyprus Ministry of Finance — Tax Department — PAYE bands and reconciliation rules, 2026.
Browse the latest Cyprus vacancies — full salary, 13th salary and benefits disclosed in listing — on jobs.com.cy.
By Barry Davies — Cyprus jobs market editor at Jobs Nicosia. Barry has covered Cyprus’ employment law and pay landscape since 2017. LinkedIn.
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