Officially the Republic of Cyprus, Cyprus is the third-largest island in the Mediterranean Sea.
While geographically, the country is in Asia (Middle East), it’s culturally a European country and part of the European Union (EU).
The average salary in Cyprus is around 26,000 EUR/year or 28,727 USD/year per the April 2023 exchange rate.
In this article, we’ll explore more about this average salary rate, including the median salary and salary range. We’ll also discuss how factors like education, work experience, and location impact the average gross salary (salary before taxes).
Finally, we’ll list three industries you can outsource to this EU country.
Table of Contents
- What is the average salary in Cyprus?
- Cypriot salary comparisons
- Top 3 services to outsource to Cyprus
Let’s get started.
What is the average salary in Cyprus?
According to Salary Explorer, the average salary in Cyprus is around 2,160 EUR per month, or 2,387 USD per month, according to the April 2023 exchange rate.
These average monthly earnings include benefits like transport and housing.
In addition to this, it’s common to give Cypriot employees a 13th-month bonus in December. Management-level employees may also receive a performance-based bonus of up to three times the average salary for their designation.
1. Salary range
The salary range in Cyprus can vary between 550 EUR/month (lowest) to 9,660 EUR (highest salary average).
However, these are average figures, and the actual maximum salary may be higher.
2. Median salary
The median salary in Cyprus is 1,860 Euros per month.
This represents the middle salary value, meaning about half the population earns less than this amount while the other half earns a monthly salary of more than 1,860 Euros.
3. Minimum wage
Cyprus is one of the few countries in the European Union without a minimum hourly wage. The other countries are Austria, Denmark, Finland, Sweden, and Italy.
As a result, workers have to come to a mutual agreement with their employer regarding their earnings. This can be through bargaining or other forms of negotiating.
Some professions, like nurses’ assistants, shop assistants, hairdressers, clerks, and nursery assistants, have a minimum salary of 870 EUR/month. This figure rises to 924 EUR/month after six months of employment.
At the same time, the Cypriot government seems ready to introduce a national minimum wage to help its citizens handle their monthly costs. It’s estimated this will be 45%-60% of the 2022 median salary of 1,573 EUR/month, equating to a minimum wage of 707 EUR/month.
4. Average salaries for different professions
Let’s look at the different salaries for some of the most common professions in Cyprus.
|Job Title||Average Annual Salary|
|CEO (Chief Executive Officer)||89,200 EUR|
|Project Manager||47,835 EUR|
|Senior Software Engineer||36,630 EUR|
|IT (Information Technology) Consultant||33,832 EUR|
|Human Resources (HR) Manager||32,386 EUR|
|Real Estate Agent||29,400 EUR|
|Financial Analyst||26,500 EUR|
|Software Developer||24,366 EUR|
|Primary School Teachers and Educators||21,500 EUR|
|Administrative Assistant||15,797 EUR|
Source: Payscale and Salary Explorer
5. Average annual salary increment
The average increment rate is determined by two key factors: the employee’s years of experience and their industry.
A) Average annual increment by experience
If employees are highly experienced, they’re more likely to get high salaries and a higher increment rate per year.
Similarly, a fresher is likely to have a lower increment rate and average gross monthly earnings, to begin with.
|Experience Level||Average Annual Salary Increment (%)|
|Junior Level||3% – 5%|
|Mid-Career||6% – 9%|
|Senior Level||10% – 15%|
|Top Management||15% – 20%|
Source: Salary Explorer
B) Average annual increment by industry
Industry increments are based on multiple factors, such as the country’s overall business development.
|Industry||Average Annual Increment Rate (%)|
|Information Technology (IT)||6%|
Source: Salary Explorer
Let’s look at some average salary comparisons based on the numbers above.
Cypriot salary comparisons
Here, we will explore how the average salary figure can vary depending on the employee’s location, education level, experience, and employment type.
If employees have more years of experience under their belt, they’re likely to be higher than someone just starting out.
This is because highly experienced candidates are difficult to replace and, as such, more valuable to the company.
|Years of Experience||Average Annual Salary|
Source: Average Salary Survey
An employee’s education level is another important factor determining their basic salary (before bonuses or overtime).
Employees without a high school level education will typically earn less compared to those with a university degree.
|Education Level||Average Annual Salary|
|Below High School||39,250 EUR|
|High School||26,548 EUR|
|Bachelors Degree||39,867 EUR|
|Masters Degree||44,101 EUR|
|Doctorate Degree||55,920 EUR|
Source: Average Salary Survey
3. Employment type
The type of employment significantly affects an individual’s tax rate and net salary (salary after taxes).
For instance, according to 2019 tax laws, 8.3% of the gross salary contributes to the social security or social insurance fund. This was further capped at 58,080 EUR in January 2022 and applied to both employers and employees.
However, self-employed individuals have to pay 15.6% of their income for social security, as per 2019 laws. They also have a lower and higher limit on their tax rate depending on their trade and profession.
|Employment Type||Average Annual Salary|
Source: Average Salary Survey and PwC
Bigger cities typically afford employees more employment opportunities.
However, employers also have to factor in their higher cost of living, which increases the average salary for employees residing in those cities.
Nicosia is the capital city of Cyprus and the one with the highest cost of living. So it has one of the highest average annual salaries in the country at 25,000 EUR.
The most common professions of Software Engineer, Compliance Office, and Software Developer pay anywhere from 13,000 EUR to 56,000 EUR per year.
This further solidifies the comparatively higher average salary in Nicosia.
The average salary in Limassol is around 29,000 EUR/year.
Similar to Nicosia, it has a high cost of living and high-paying popular professions of Compliance Officer, Software Engineer, and Software Developer. These lead to an average salary of 15,000 EUR to 66,000 EUR per year.
The average annual salary in Larnaca is around 23,000 EUR.
The most popular professions here are Civil Engineer, Marketing Manager, and Full-Stack Software Developer, which typically pay between 13,000 EUR/year to 51,000 EUR/year.
The average salary in Paphos is 21,000 EUR/year.
You will find many people working under the designations of Reservations Manager, Food and Beverage Manager, and Operations Supervisor, earning them between 12,000 EUR/year to 42,000 EUR/year.
The average annual salary in Paralimni is 18,000 EUR.
The most common professions here are Receptionist and Information Technology Officer, earning employees anywhere between 14,000 EUR/year to 22,000 EUR/year.
5. Public Sector vs. private sector
In Cyprus, there is a marked difference between the average salary for public sector employees compared to private-sector ones.
Here, public sector employees typically earn 18% more than private-sector employees.
Source: Salary Explorer
Note: All earnings are estimated based on multiple salary surveys and labor statistics. Actual numbers may vary depending on factors like location and education.
Now, let’s explore the three best services you can outsource to this European country.
Top 3 services to outsource to Cyprus
With its strategic location in Asia and its political connection to Europe, Cyprus offers the best of both worlds to companies looking to outsource operations.
For companies in the United States and Europe, outsourcing to Cyprus is cheaper than most European countries. They also don’t have to worry about cultural or language differences.
While the country’s official languages are Greek and Turkish, about 80% of the population is proficient in English. This is because Cyprus was once a colony under the United Kingdom and English was the de facto language.
Due to Cyprus’s geopolitical position, you may also find immigrants from Germany, the Russian Federation, Spain, and the Czech Republic speaking their native languages. The 2011 Statistical Service of Cyprus also recorded thousands of Greek, Romanian, and Bulgarian native speakers.
Economically speaking, Cyprus took a hit during the pandemic, and the unemployment rate in the country was approximately 7.21% in 2020.
Yet it’s still regarded overall as a high-income country with a GDP per capita exceeding 29,000 USD, making it a safe and viable outsourcing destination. Let’s look at three services you can outsource to Cyprus.
1. Hiring and recruiting
HR (Human Resources) can often take up a lot of time company’s resources, including your employees’ time and energy.
Instead, you can outsource a part of your HR department to Cyprus, specifically your hiring department.
Since the country is part of the European Union, it must follow strict employee protection laws, keeping you safe from any legal action.
Additionally, Cypriot employees will help you source the best talent as they know the right places to look for experienced and skilled professionals.
You can also use this opportunity to enter a new market in Cyprus and the EU in general.
2. Accounting and bookkeeping
You can outsource your accounting department to Cyprus to handle your:
- Day-to-day administration.
- Payroll services.
- Tax compliance, and other financial services.
Through this, you can ensure your company is always compliant with EU laws.
3. Administrative services
You can easily outsource administrative or Virtual Assistant (VA) services, such as:
- Data entry.
- Calendar management.
- Documentation assistance.
- Email and phone customer service.
- Customer relationship management.
- Transcription services.
Outsourcing these can help you save money in the long run and free up resources to develop your core business.
Read what you should include in your outsourcing agreement for a profitable relationship.
While Cyprus is a European country, its geographic position makes it a perfect destination for outsourcing. It’s an advanced economy with comparatively lower salaries, which helps you save costs.
You can outsource your hiring, accounting, and administrative departments to save time and also expand your company into a new market.
You can use the average salary figures above to figure out whether it makes financial sense for you to outsource or hire Cypriot employees.