The Inspection Service of the Ministry of Labour and Social Insurance informed students in the framework of the Junior Achievement Cyprus program about the basic labour rights and obligations of employers and employees.
The briefing was held by Andis Apostolou, Mentor at Junior Achievement Cyprus, Head of the Inspection Service, Director of the Labour Relations Department and Superintendent of Trade Unions.
The aim of the presentation was to understand the basic provisions of labour legislation, to prevent undeclared work and to provide information on the national minimum wage, working hours, leave rights and social security contributions.
What is considered undeclared work
According to the legislation, undeclared work is the employment of salaried or self-employed workers without paying contributions to the Social Insurance Fund. Correspondingly, "undeclared earnings" means insurable earnings that have not been declared in time by the employer or have been falsely declared.
The Service pointed out that the obligation to declare and pay contributions also applies to the employment of pupils and students, regardless of the duration and type of contract.
Benefits and consequences
Contributions to the Social Insurance Fund correspond to a percentage of gross earnings. For example, for a salary of €1,200, the contribution amounts to €105.60. These contributions give rise to pension rights, allowances and other benefits. On the contrary, undeclared work deprives the employee of the necessary stamps and negatively affects the right to a pension and benefits such as unemployment, maternity or sickness.
At the same time, serious socio-economic effects are created: loss of state revenues, burden on taxpayers and unfair competition in the labour market.
National minimum wage and basic rights
Regarding 2025, the national minimum wage for full-time employment is set at €900 at the time of recruitment and increases to €1,000 after six months of service. For part-time work, an analogy applies. Workers in domestic work, agriculture and shipping, as well as those who fall under special decrees such as those of the hotel industry, are excluded.
Contractual obligations of employers
Employers are required to inform employees in writing of the terms of employment within seven days of recruitment and to issue a payslip. The probationary period may not exceed six months.
Working hours and leave
Working hours vary depending on the sector: shops up to 38 hours, offices up to 44 hours and in some cases up to 48 hours with overtime. Employees are entitled to four weeks' annual leave, a 15-minute break in daily work of more than 6 hours, as well as daily and weekly rest.
Equal rights for all workers
Part-time or fixed-term workers have equal rights with full-time workers, in proportion to their working hours. Discrimination under a contractual regime is prohibited.
Sickness, unemployment and holidays
All insured persons who contribute to the Fund are entitled to sickness and unemployment benefit for up to 156 days per period of interruption of employment. Public holidays are regulated either by law or by collective agreements. In the case of work on a public holiday, the employee is compensated at 1:2 for the hours worked.
