Redundancy pay in Cyprus

What the Redundancy Fund pays by years of service, under the Termination of Employment Law.

The weekly wage is the month's pay times 12, divided by 52. If you are paid a 13th salary, add a twelfth of it to the month.

Redundancy payment
€6,00013 weeks of pay
Years that count6
Weeks of pay13
Weekly wage counted€461.54
Paid by the Redundancy Fund€6,000.00
  • A weekly wage counts up to €883.04 in 2026.

The scale

Year of serviceWeeks of pay for each year
1 to 42
5 to 102.5
11 to 153
16 to 203.5
21 to 254

A remainder of 26 weeks or more counts as a year. Service beyond 25 years is not counted.

Who qualifies

  • Dismissed for redundancy: the business or the job itself stops, shrinks or changes.
  • At least 104 weeks of continuous employment with the same employer.
  • Not yet at pension age. In the last twelve months before it, the payment is reduced.
  • Paid by the Redundancy Fund, on form YKA 600, within three months of the dismissal.

Questions people ask

Who gets a redundancy payment in Cyprus?

An employee dismissed for redundancy after at least 104 weeks of continuous employment with the same employer, who has not reached pension age.

How is redundancy pay calculated?

Two weeks of pay for each of the first four years of service, two and a half for each year from the fifth to the tenth, three from the eleventh to the fifteenth, three and a half from the sixteenth to the twentieth and four from the twenty-first to the twenty-fifth. A remainder of 26 weeks or more counts as a year.

Is there a ceiling?

Yes. The weekly wage is counted up to four times the weekly basic insurable earnings: 4 x €220.76 = €883.04 a week in 2026. Service beyond 25 years is not counted, which makes the most 75.5 weeks of pay.

Who pays it?

The Redundancy Fund, which employers finance through a contribution of 1.2% of pay. It is not paid by the employer directly.

How and when do I apply?

On form YKA 600, at any district office of the Social Insurance Services or a Citizen Service Centre, within three months of the dismissal, with the dismissal letter.

Is redundancy the same as unfair dismissal?

No. Compensation for unfair dismissal is decided by the Industrial Disputes Court and paid by the employer. This calculator is only for redundancy.

Where the rules come from

Checked 13 November 2026. General information, not legal advice: the law and the Ministry of Labour are the authority.

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