Redundancy pay in Cyprus 2026: how it is calculated
In Cyprus, when you lose your job through redundancy (the post is abolished or staff are cut), the payment comes from the Redundancy Fund, not from the employer. You qualify after at least 2 years of continuous employment with the same employer. Redundancy pay is tax-free. The calculator above also adds the notice period, unused leave and the unemployment benefit.
How it is calculated
For each year of service you receive a number of weeks’ pay:
| Years of service | Weeks’ pay per year |
|---|---|
| 1–4 | 2 |
| 5–10 | 2.5 |
| 11–15 | 3 |
| 16–20 | 3.5 |
| 21–30 | 4 |
The total is capped at 75 weeks. Weekly pay counts up to the maximum insurable earnings.
Example: €2,000 gross a month
| Years of service | Redundancy pay | Notice |
|---|---|---|
| 1 | – | 2 weeks |
| 2 | €2,000 | 4 weeks |
| 3 | €3,000 | 5 weeks |
| 5 | €5,250 | 7 weeks |
| 8 | €9,000 | 8 weeks |
| 10 | €11,500 | 8 weeks |
| 15 | €19,000 | 8 weeks |
| 20 | €27,750 | 8 weeks |
| 25+ | €37,500 | 8 weeks |
With 13 salaries a year, weekly pay is €2,000 × 13 ÷ 52 = €500. For 10 years: 4 × 2 + 6 × 2.5 = 23 weeks × €500 = €11,500, tax-free. From 25 years on, the payment reaches the 75-week cap.
Notice period
After 26 weeks of employment, the employer must give notice or pay in lieu of notice: 1 week (under 1 year), 2 weeks (1–2 years), 4 (2–3), 5 (3–4), 6 (4–5), 7 (5–6) and 8 weeks for 6 years or more. If you resign, notice is usually 1–4 weeks.
Unemployment benefit
After a dismissal you can claim unemployment benefit from Social Insurance: 60% of the basic insurable earnings plus a supplementary part, for up to 156 days (26 weeks). You need at least 26 weeks of contributions. In the €2,000 example the estimate is about €272 a week.
Frequently asked questions
Who pays redundancy pay?
The Redundancy Fund, which employers pay contributions into. You apply to the Social Insurance Services.
Do I get redundancy pay in my first year?
No: redundancy pay needs at least 2 years of continuous employment. You are entitled to notice after 26 weeks, though.
Is redundancy pay taxed?
No, redundancy pay is tax-free. Pay for unused leave and pay in lieu of notice are taxed as normal.
What if the dismissal is unfair?
For a dismissal without a valid reason, compensation is set by the Labour Disputes Court and can be higher. The calculator shows the redundancy case.
Sources: Termination of Employment Law (24/1967), Redundancy Fund, Social Insurance Services of Cyprus. Last checked against the official sources: October 2026. The amounts are estimates for information, not legal advice.