The Labor law in Cyprus: The Labor law in Cyprus:

an overviewan overview Current rate of unemployment in Current rate of unemployment in

Cyprus:Cyprus:2012 9.30% (2011 6.5%)2012 9.30% (2011 6.5%)

Current rate of unemployment for Current rate of unemployment for young people:young people:

2012 25.80% (2011 18%)2012 25.80% (2011 18%) Current rate of unemployment for Current rate of unemployment for

the ‘over 55the ‘over 55’:’:2012 28% (2011 ….%)2012 28% (2011 ….%)

The Labor law in Cyprus: The Labor law in Cyprus: an overviewan overview

The minimum gross wage in The minimum gross wage in Cyprus is currently at Cyprus is currently at €924.€924.

In the Banking sector it is In the Banking sector it is currently at:currently at:

- - €1,104.00€1,104.00 for high school for high school leavers andleavers and

- - €1,213.00€1,213.00 for University for University graduatesgraduates

The Labor law in Cyprus: The Labor law in Cyprus: an overviewan overview

Cyprus has ratified all the ILO Cyprus has ratified all the ILO Fundamental Human Labour Fundamental Human Labour Rights Conventions.Rights Conventions.

Apart from the Fundamental Apart from the Fundamental Human Labour Rights Human Labour Rights Conventions Cyprus has also Conventions Cyprus has also ratified a substantial number of ratified a substantial number of other Labour Conventions other Labour Conventions

Cyprus Government Cyprus Government scheme for employing scheme for employing

young individualsyoung individuals The Cyprus Government is The Cyprus Government is

providing incentive schemes, co-providing incentive schemes, co-financed with the European Social financed with the European Social Fund. Fund.

The scheme covers The scheme covers 60%60% of the of the yearly wage costyearly wage cost

Maximum amount of Maximum amount of €7.200€7.200 per per person per semester. person per semester.

The subsidy is granted only for the The subsidy is granted only for the first 6 months of employmentfirst 6 months of employment

Cyprus Government Cyprus Government scheme for employing scheme for employing

young individualsyoung individuals The total budget of the scheme amounts The total budget of the scheme amounts

to to €8 million €8 million Covers the period up to Covers the period up to 30 June 201430 June 2014. . From 2009 the Ministry of Labour and From 2009 the Ministry of Labour and

Social Insurance introduced three Social Insurance introduced three schemes resulting in schemes resulting in 3,5003,500 individuals individuals getting employed. getting employed.

Additional schemes of the Human Additional schemes of the Human Resources Development Authority helped Resources Development Authority helped to employ another to employ another 5,0005,000 individuals in individuals in various sectors of the economy.various sectors of the economy.

Cyprus Pension SchemeCyprus Pension Scheme Retirement age is currently at Retirement age is currently at 65 65 A minimum of A minimum of 10 years10 years of full of full

Social Insurance contributions is Social Insurance contributions is requiredrequired

Early retirement pensions can be Early retirement pensions can be enjoyed without reduction in enjoyed without reduction in benefits by the age of benefits by the age of 63 63 under under certain conditionscertain conditions

Pension Benefits (i)Pension Benefits (i)

A basic pension and A basic pension and A supplementary pension based on the A supplementary pension based on the

level of gross insurable earningslevel of gross insurable earnings The total annual insurable earning of The total annual insurable earning of

every insured person is divided into two every insured person is divided into two bands:bands:

A lower band (A lower band (€170.88 per week for €170.88 per week for 20122012) and ) and

an upper band ((an upper band ((€1,025 - €170.88)€1,025 - €170.88) per per week or week or €4,442€4,442 per month for 2012 (six per month for 2012 (six times the threshold of the lower band).times the threshold of the lower band).

Pension Benefits (ii)Pension Benefits (ii)

Insured persons are credited each Insured persons are credited each year with “social insurance units” year with “social insurance units”

To qualify for the benefit, an To qualify for the benefit, an individual must have paid individual must have paid contributions for at least 15 years of contributions for at least 15 years of which 10 years must be funded (which 10 years must be funded (10 10 basic band unitsbasic band units).).

Pension Benefits (iii)Pension Benefits (iii)

The minimum monthly pension for The minimum monthly pension for 2012 with no dependants is 2012 with no dependants is €348.60€348.60

The maximum monthly pension for The maximum monthly pension for 2012 is approximately 2012 is approximately €1,600€1,600 depending on the upper band depending on the upper band contributionscontributions