Cyprus’ future workforce received a crash course in employment rights and responsibilities this week as part of the Junior Achievement Cyprus (JA Cyprus) initiative, with a clear message that undeclared work isn’t just illegal, it undermines your future.

The session was delivered by Antis Apostolou, Acting Director of the Department of Labour Relations and Supervisor of Labour Inspectorate, who also acts as a mentor for JA Cyprus.

Speaking on behalf of the Ministry of Labour and Social Insurance, Apostolou outlined the basics of labour legislation, explained key obligations for employers and employees, and raised awareness around the national minimum wage, legal working hours, leave entitlements and social insurance contributions.

Particular emphasis was placed on the risks of undeclared employment. According to the legislation, undeclared work refers to hiring individuals without registering them with the Social Insurance Fund or failing to declare their earnings truthfully or on time.

Apostolou underlined that the same obligations apply to the employment of pupils and students, regardless of contract type or duration.

Undeclared work deprives employees of access to key benefits such as unemployment, sickness, maternity leave and future pension entitlements.

For example, a monthly salary of €1,200 requires a contribution of €105.60 to the Social Insurance Fund (SIF), which safeguards these rights.

Failure to contribute means workers lose their social security stamps, which in turn limits their access to future support.

At the same time, undeclared employment has serious consequences for the economy, reducing state revenue, increasing the tax burden on compliant citizens and creating unfair competition in the labour market.

As for the current national minimum wage, it remains set at €900 per month upon recruitment and rises to €1,000 after six months of service. Proportional pay applies for part-time roles.

However, workers in domestic employment, agriculture, shipping, and certain sectors covered by special decrees such as the hotel industry are not included in this framework.

Employers are required to inform employees in writing within seven days of recruitment about the terms of employment and must issue a payslip. The probationary period cannot exceed six months.

Working hours depend on the sector. Shops may operate up to 38 hours per week, while offices are allowed up to 44, and in some cases up to 48 hours with overtime.

Employees are entitled to four weeks of annual leave, a 15-minute break if working more than six hours, and appropriate daily and weekly rest periods.

Apostolou also pointed out that part-time and fixed-term employees must be treated equally to full-time staff, with proportional rights and no discrimination based on contract status.

All insured employees who contribute to the Social Insurance Fund are entitled to sickness and unemployment benefits for up to 156 days per interruption of employment.

Finally, public holidays are either determined by law or collective agreements, and in cases where work is required on such days, employees are compensated at double the time.