Taxes in Europe Database v2
The Termination of Employment Law (Law 24 of 1967-2003 and Regulations issued thereunder).
The Termination of Employment Law is administered by the Social Insurance Services of the Ministry of Labour, Welfare and Social Insurance. The Redundancy Fund is established under this legislation and is financed by contribution rates is provided under the relevant legislation.
Beneficiaries are employees who have completed two years of employment to the same employer and their employment is terminated for reasons of redundancy.
Government Controlled Areas of Cyprus.
Contributions are payable only on income from employment in Cyprus. Recidency is not a critirion for payment of contributions.
Employers are liable to pay contributions to the Redundancy Fund.
Others = Redundency fund.
The Fund is financed entirely by employer's contributions. The rate of contribution is 1.2% on employees earnings up to a maximum amount fixed every year.
The earnings are those defined under the Social Insurance legislation and include the basic salary, the cost of living allowance, commissions, the 13th , 14th wage or the 53rd to 56th week, overtimes, and the contributions of the employer to the Central Holiday Fund.
The rate of contribution to the Redundancy Fund is 1.2% on employee's earnings and is paid solely by the employer.
The employer is liable to pay contributions to the Redundancy Fund by the end of the calendar month which follows the month for which contributions are due. For example, January 2012 contributions must be paid by the 29th of February 2012. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following day of work.
Social Insurance Services of the Ministry of Labour, Welfare and Social Insurance.