TechIsland welcomes new decrees on third country workers

TechIsland has welcomed the government's implementation of the decrees issued by the Ministry of Labour and Social Insurance, aiming to enhance the attraction of highly skilled professionals from third countries.

Noting that these decrees come through the EU Blue Card Directive and will expand access for foreign students to the labor market, allowing them to work in fields related to their studies, TechIsland Chairman Valentinos Polykarpou describes the initiatives as "a pivotal step in advancing the technology sector in Cyprus."

Polykarpou's full statement can be seen below:

"TechIsland welcomes the government's implementation of the decrees issued by the Ministry of Labour and Social Insurance, aiming to enhance the attraction of highly skilled professionals from third countries through the EU Blue Card Directive and to expand access for foreign students to the labor market, allowing them to work in fields related to their studies.

These initiatives mark a pivotal step in advancing the technology sector in Cyprus.

Developing human capital is essential for the growth of our industry. While Cyprus is already an attractive destination for foreign investment, the specialized skills required by technology companies are not yet sufficiently available within the local workforce. The ability to attract and retain global talent while leveraging their expertise to build local capacity is critical for the sector’s long-term sustainability.

These measures are instrumental in creating the conditions necessary for Cyprus to establish itself as a true hub of technology and innovation. By investing in talent, we lay the foundations for a dynamic ecosystem that will attract investments, create jobs, and drive the country’s economic development.

TechIsland remains committed in supporting initiatives that foster innovation, enhance competitiveness, and position Cyprus as a destination on the global technology map."

What the decrees specify

Decrees by the Minister of Labour, Yannis Panayiotou, on the employment of workers from third countries were published in the official gazette of the Republic on 20 December. The decrees allow, on the one hand, the employment of highly qualified personnel in specific sectors, with a minimum wage set, and on the other hand, they allow the employment of students from third countries, who were in the Republic on 1 December, in eight sectors. 

In a statement, the Ministry of Labour notes that the provisions of the decrees aim at attracting more skilled professionals to Cyprus and widen the access of foreign students to specific sectors and professions, in order to effectively respond to the increased needs of the labour market.

Specifically, it notes that in order to attract more highly qualified people from third countries the decree sets sectors in which a Blue Card may be granted, and sets the minimum earnings, in accordance with the provisions of the European Blue Card Directive, which allows them to live and work in the European Union.

The minimum gross annual salary for highly qualified employment is set at €43,632, which is equal to 1.5 times the average gross annual salary in the Republic. Furthermore, highly qualified employment for third country nationals in Cyprus is defined as those professions belonging to the sectors of Information and Communication Technologies (ICT), Pharmacy for research purposes and Maritime (excluding captains and ship's crew).

In order to widen the access of foreign students to the labour market, the Ministry notes that the date by which students from third countries must be in the Republic to obtain employment rights is updated to December 2024, instead of March 2024.

The employment of students, according to the decree, is allowed in specific sectors of economic activity and professions, provided that they secure an employment contract with a specific employer, certified by the Department of Labour, in which the main terms of employment are stated. The student will be required to produce a full-time study certificate and a document stating the hours of study from a recognised study institution, as well as their residence permit. At the same time, there will be an obligation to notify the Labour Department of the student's monthly work schedule.

The sectors of economic activity in which students are allowed to work include trade, health and social care, manufacturing, agriculture, catering and hotels.

Also read: Cabinet revises 'start-up visa' scheme for third country nationals