Annual leave in Cyprus: days, approval and payment
How to check your remaining holiday entitlement, agree on dates, find out the payment arrangements and arrange for the settlement of unused holiday entitlement.
Checked: 4 October 2026.
Where does the leave check begin?
Annual paid leave in Cyprus is calculated on the basis of the working week, the period of employment, the accrued balance and the pay scheme. Under the standard scheme, the minimum annual leave entitlement is four weeks: 20 working days for a five-day week or 24 for a six-day week. A separate calculation is required for partial periods; the contract may provide more favourable terms.
These days should not automatically be converted into calendar days. If leave has been agreed for Monday to Friday under a standard five-day working week, the calculation is based on the working days in your timetable. For shift work, part-time employment and changes to working hours, please request the relevant guidelines; the standard approach used in office work does not always apply to other work arrangements.
This article relates to employment in the Republic of Cyprus. Annual leave, sick leave, family leave and days off are different grounds for absence. You cannot check your remaining holiday entitlement simply by looking at the total number of days spent away from the office: you will need the dates of each period and the relevant documentation from your employer.
Accrual period and balance
Please check the company’s holiday year, your start date and your entitlement under your contract. The official description of the standard scheme states that the full four-week annual leave entitlement is linked to 48 weeks’ work per year. If an employee joins or leaves during the year, ask for a calculation of the entitlement period; do not mistake the full annual minimum for a new employee’s automatically accrued balance.
Ask for a breakdown of your balance: carry-over from the previous period, entitlement for the current period, days taken and confirmed future bookings. Some departments deduct agreed future leave straight away, whilst others do so after the leave has been taken.
Sick leave and certain statutory family-related absences are taken into account when calculating annual leave in accordance with the relevant rules. You cannot automatically reduce the balance simply because an employee was physically absent. If such a reduction is visible in the system, check the legal basis and which periods are included in the calculation.
How to agree on dates
Submit your request via the designated channel, specify the dates and the number of working days, and then await confirmation. A preliminary discussion with a colleague does not constitute approval by the person in charge. It is advisable to postpone the purchase of non-refundable tickets until you have received a clear answer; keep a copy of the confirmation and the terms and conditions of the task assignment.
If the dates are rejected, ask for an explanation of the procedure for selecting a different period and suggest an alternative. The department’s working conditions and timetable are important, but a lack of agreement on specific dates does not amount to a cancellation of the right to annual leave. In the event of a protracted dispute, it is helpful to separate the dispute over the timing from the dispute over the remaining leave entitlement itself.
In the event of a collective closure of the business, seasonal work or the cancellation of previously agreed leave, check the contract, agreement and the actual circumstances. Do not assume that standard internal policies provide a sufficient response to any dispute. Request a written decision, the applicable grounds and the procedure for adjusting days that have already been entered in the system.
Who pays for holiday leave?
During annual leave, payment may be made directly by the employer or from the Central Holiday Fund. Employers either contribute to the fund or make use of the exemption scheme, provided the conditions are met. Check your specific arrangements with payroll and the Social Insurance Services: the name of the payment on your bank statement does not explain the reason for it.
When the employer makes the payment, check the period covered against your payslip and your usual remuneration. When the fund makes the payment, check the required procedure, the recorded employment details and the relevant documents. Do not add the fund’s payment to your full salary for the same days until it has been established what amount is actually due under the applicable scheme.
If your payment is delayed, first establish who is responsible for paying you and whether the necessary steps have been taken. A request to your employer regarding an unpaid payslip differs from a request to the insurance fund regarding your insurance records. Keep a record of the agreed dates, the payslip and the details of your claim so that your enquiry relates to a specific period and a specific outstanding amount.
Carry-over and cash settlement
The accrual and carry-over of annual leave are checked against the agreement, contract and established practice, taking the law into account. Official documents describe the possibility of accumulating up to two years’ leave under certain conditions. Do not accept either automatic indefinite accumulation or the loss of all days based solely on a single system entry without verifying the grounds and circumstances.
Annual leave cannot normally be replaced by a cash payment whilst the employment relationship continues: such a replacement is only permitted upon termination of the employment relationship. The offer ‘work without taking leave, and we’ll pay you extra’ is not a universally valid legal arrangement. Make a clear distinction between payment for leave taken and compensation for any unused balance.
If your employer suggests writing off your days off, ask for a statement of your balance and an explanation of when you were actually given the opportunity to take them. Keep a record of any previously rejected requests. For legal assessment, the actions of both parties and the applicable regulations are important; the simple in-house ‘use it or lose it’ rule does not cover the whole issue.
Illness whilst on holiday and dismissal
If your illness coincides with an agreed period of leave, inform your employer and obtain a medical certificate in accordance with the established procedure. Do not amend the calendar yourself and do not assume that days have been automatically reinstated. Request a decision on the classification of your absence and the new balance, whilst retaining the original agreement and medical certificate.
When giving notice of dismissal, annual leave and the notice period should not simply overlap in accordance with the general rule set out by the Department of Labour Relations. If leave is granted in lieu of a cash payment, the correct schedule must be agreed. For specific termination arrangements, please also check the sector-specific conditions.
In the final calculation, please specify a separate amount for any outstanding unused holiday entitlement and the method used to calculate it. Please check the number of days taken, any carry-overs and payments from the holiday fund.
Which documents should you keep?
To check this, simply start with the contract, the company’s policies, the leave balance and confirmed requests. Include payslips, fund payments and changes to the schedule if these affect the number of days. A table organised by period is useful: entitlement, carry-over, usage, payment and an explanation of each change in the balance.
If the figures do not match, send your employer a list of specific dates and ask for a correction or an explanation. For enquiries regarding annual leave and working conditions, contact the Department of Labour Relations; for enquiries regarding holiday fund and insurance details, contact Social Insurance Services. A significant dispute arising from dismissal requires an individual legal assessment.
The check is complete once the applicable annual entitlement, the current balance, the agreed dates and the person responsible for payment are known. This allows you to plan your holiday and identify any discrepancies before the final settlement. Doing the maths yourself helps to prepare a claim, but does not replace the determination of the applicable rules in the event of a dispute.
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