Remote Work Allowance in Cyprus: What Changes from November 2025
Last updated on September 23, 2025
Starting 1 November 2025, Cyprus introduces a mandatory remote work allowance for employees in the private and semi-public sectors working from home.
According to the Ministry of Labour, employers will be required to cover minimum monthly costs for home office use.
Allowance Breakdown
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€26 for home office usage
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€7 for communications (internet/phone)
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€8 for equipment maintenance
Up to €41 per month for each full-time remote worker.
Exceptions & Adjustments
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No allowance if the employer provides equipment.
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No allowance if the employer covers internet/phone directly.
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Partial remote work = proportional allowance.
Tax Treatment
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The allowance is not considered salary.
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It is tax-free and exempt from social security contributions.
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Fully deductible expense for the employer.
Employers may also pay more than €41 (e.g. €100/month) without tax implications for employees.
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Disclaimer: The above information is provided for general guidance only. It does not constitute legal or tax advice. Always consult a qualified professional for advice tailored to your specific circumstances.