PENSIONS
How are the government lump sum (gratuity) and a Provident Fund calculated in Cyprus?
The government retirement gratuity is the annual pension × 14/3: service to 31.12.2012 counts at your final pensionable salary ÷ 800 per month of service, service from 1.1.2013 at the career-average salary ÷ 800 (Laws 216(I)/2012, 210(I)/2022 — those first appointed after 1.10.2011 accrue from the new occupational scheme's start in 2023), with a 400-month total service cap, a whole-career average for the post-2013 part and the annual pension capped at ½ of final emoluments. A private-sector Provident Fund is a savings account: (your % + your employer's %) × salary each year, compounding at the fund's return — typical contributions in Cyprus are 5% + 5%. The pension page at taxemas.com/en/pension estimates both, on the same salary path as your pension.
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Guidance — not tax, pension or investment advice. Figures and rules may contain errors or have changed; confirm with a licensed professional or the competent authority before acting. Figures last verified: July 2026.