Cyprus Annual Leave & Central Holiday Fund Calculator
Determine statutory paid vacation rights under Cyprus labor law: minimum 20 or 24 working days, daily leave wage rates, accumulated unused leave cash encashment, and Central Holiday Fund (8.0% employer contribution) in EUR (€).
Compensation & Leave Parameters
Employers not exempted from KTA contribute 8.0% of gross salary (subject to the statutory ceiling of €5,837/mo). The State Social Insurance Fund directly pays out the leave allowance.
Annual Holidays with Pay Law No. 8 of 1967, Ministry of Labour and Social Insurance (MLSI) Cyprus.
Statutory Executive Summary: Cyprus Annual Vacation & Holiday Fund Law
Under the Annual Holidays with Pay Law (Law No. 8/1967) administered by the Ministry of Labour and Social Insurance (MLSI):
- Minimum Statutory Entitlement (4 Weeks): Employees on a standard 5-day workweek earn a minimum of 20 working days of paid annual leave per year. Employees working a 6-day week earn 24 working days per year.
- Daily Wage Divisors: For monthly-salaried personnel, daily leave earnings are determined by dividing gross monthly pay by 21.67 working days (5-day week) or 26.0 working days (6-day week).
- Central Holiday Fund (KTA): Employers who do not operate an exempted company-funded vacation plan must contribute 8.0% of employees' gross insurable earnings (capped at €5,837/mo or €70,044/yr) to the Central Holiday Fund.
- Mandatory Terminal Cash Settlement: Upon termination of employment, any accumulated untaken leave days cannot be forfeited and must be settled in cash indemnity.
Comparative Matrix: Cyprus Work Schedules & Statutory Leave Rights
Statutory comparison under Annual Holidays with Pay Law No. 8/1967 on an illustrative €2,200 monthly gross salary.
| Work Schedule | Minimum Annual Leave | Daily Wage Divisor | Statutory Daily Wage | Encashment for 10 Days |
|---|---|---|---|---|
| 5-Day Working Week | 20 Working Days (4 Wks) | 21.67 Days | €101.52 / day | €1,015.23 |
| 6-Day Working Week | 24 Working Days (4 Wks) | 26.00 Days | €84.62 / day | €846.15 |
Frequently Asked Questions: Cyprus Annual Leave & Central Holiday Fund
What is the statutory minimum annual leave entitlement in Cyprus?
Under the Annual Holidays with Pay Law (Law 8/1967), employees working a standard 5-day week are entitled to a minimum of 20 working days of paid annual leave per year, while employees on a 6-day week schedule are entitled to at least 24 working days (4 full working weeks).
How is the statutory daily wage rate calculated for leave pay in Cyprus?
For monthly-salaried employees, the daily leave wage is derived by dividing gross monthly salary by 21.67 working days for a 5-day week schedule, or by 26.0 working days for a 6-day week schedule.
What is the Central Holiday Fund (Κεντρικό Ταμείο Αδειών - KTA)?
Employers who do not directly provide paid leave schemes must contribute 8.0% of each employee's gross earnings to the Central Holiday Fund (KTA) administered by the Ministry of Labour and Social Insurance. The fund then pays holiday allowances directly to insured employees.
Can unused statutory annual leave be paid out in cash upon termination?
Yes. Upon termination of the employment contract, any accrued but untaken statutory annual leave must be fully settled in cash by the employer leave indemnity (calculated Days × Daily Wage Rate).
What is the maximum earnings ceiling for Central Holiday Fund contributions?
Central Holiday Fund contributions are subject to the official Social Insurance Fund (YKA) insurable earnings ceiling of €5,837 per month (€70,044 annually). Earnings above this cap are exempt from the 8% employer levy.
Engr. Muhammad Shahzad
Verified Compliance AuthorLead Compliance Engineer & European Labor Law Specialist
Specialist in Cyprus employment law, Annual Holidays with Pay Law No. 8/1967, Ministry of Labour Central Holiday Fund (KTA) mechanics, and EU Working Time Directive standards.
📊 Cyprus Tax Department & Social Insurance Services (SIS) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (EUR) |
|---|---|
| Primary Net / Statutory Payable Amount | €0.00 |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Cyprus Tax Department & GESY Healthcare Policy Lead
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.