Many Cypriot employers pay an extra month's salary at the end of the year — and sometimes a 14th before summer. Here's how it works.
Calculate net pay with 13th salary →The 13th salary is an additional payment, usually equal to one month's gross, paid around December. It is a widespread practice in Cyprus, often written into employment contracts, though whether it is guaranteed depends on your specific contract or collective agreement. A 14th salary — a second bonus month — exists in some sectors and is typically paid before the summer holidays.
If your annual gross is fixed, being paid over 13 instead of 12 months simply means each monthly payment is smaller, with the extra cheque in December. If your monthly figure is fixed and a 13th is added on top, your annual total is higher. The calculator lets you choose 12, 13 or 14 payments so you can see both views.
Yes. The 13th (and 14th) salary is part of your taxable employment income. Cyprus income tax is progressive and calculated on your total annual income, so the bonus month is taxed at your marginal rate along with the rest. Social Insurance and GESY also apply, subject to the annual caps. Because tax is worked out on the yearly total, splitting it across 12 or 13 payments does not change the total tax you pay — only the size of each pay cheque.
On a €26,000 annual gross paid over 13 months, each payment is €2,000 gross. The annual tax, Social Insurance and GESY are the same as if it were paid over 12 months of €2,166.67 — the calculator computes the yearly totals and then divides the net across your chosen number of payments.
A 13th salary is normally equal to one month's gross pay — your annual gross divided by 12 — paid as an extra instalment, most often in December. A 14th salary adds a second extra month, sometimes paid mid-year (for example before the summer). If you're paid a fixed monthly amount, the 13th is roughly that same amount again.
The 13th and 14th salaries are part of your annual gross income and are taxed exactly like the rest of it. There is no separate, higher "bonus tax" in Cyprus. What matters for tax is your total annual gross, not how many instalments you split it into. Social Insurance and GESY also apply to these payments (subject to the usual annual caps).
Choosing 12, 13 or 14 payments changes the size of each pay packet, not your total tax for the year. Spreading the same annual gross across 14 payments makes each one smaller; across 12 makes each one larger. The calculator lets you pick 12, 13 or 14 and shows the net per payment for each, so you can see your real monthly cash flow.
It depends on your contract. A 13th (and sometimes 14th) salary is common in Cyprus and is often written into employment contracts or collective agreements, but it is not a blanket legal entitlement for every worker. Check your contract or offer letter for exactly how many salaries you're paid and when.