Cyprus labour shortages: who can legally work?

Cyprus has tens of thousands of third-country nationals working legally in the country, but different rules apply to each group The construction and hotel industries often complain about labour shortages, while labour unions counter-protest over the use of temporary hiring agencies which they say lead to poor treatment of foreign workers. The Cyprus Mail attempted an overview of the situation regarding third-country nationals legally residing and working here as well as asylum beneficiaries who are entitled to work. Earlier this month in parliament, MPs channeled complaints about temporary employment agencies being linked to “slave trade” and “human trafficking”. Trade unions SEK and PEO condemned temporary agency practices, and accused some operators of “renting” personnel (from chefs to maids) and creating a restrictive labour market environment. Unions warn that reliance on foreign work permits risks undermining collective agreements and local labour rights, prompting calls for strict inspections and ministry intervention. In parallel, thousands of Syrians legally residing here have returned to their country since late 2024, depleting the foreign labour pool in Cyprus, particularly in the construction sector. To make up the numbers, the government recently struck up bilateral ‘structural mobility’ arrangements with countries like Egypt and India. We reached out to the Deputy Ministry for Migration and International Protection, asking who – meaning non-EU nationals – can work in Cyprus and in what sectors. Who can work in Cyprus? The deputy ministry said third-country nationals may be employed in the Republic in sectors where the employment of non-EU nationals is permitted under applicable labour migration policy, subject to approval by the Department of Labour and the Migration Department. These sectors include agriculture, livestock farming, food delivery, manufacturing, wholesale and retail trade, and other occupations experiencing labour shortages that fall under the general employment category. Domestic work is a separate – and major – sector in which the employment of non-EU nationals is permitted. Separate arrangements apply to employees of foreign-interest companies and other highly skilled workers, whose employment is governed by specific migration programmes. How many third-country workers are there? In the general employment category, the latest data (end of August 2026) reports a total of 26,710 valid residence and work permits. A breakdown by main country of origin shows that Nepalese, Indian, Egyptian, Bangladeshi, Sri Lankan and Filipino nationals make up the bulk of these workers. Other countries, with far fewer numbers, are Pakistan, Vietnam, Russia and Lebanon. Nepalese nationals comprise 28.8 per cent, followed by Indians at 21.9 per cent. In addition, there are a significant number of domestic workers – totaling 33,919. Their main countries of origin are Nepal, Sri Lanka, the Philippines, India and Vietnam. Can asylum seekers work? As for asylum seekers, can they legally work in Cyprus? They can, under certain conditions. Applicants for international protection may work in designated sectors of the economy, pursuant to Ministerial Decree No. 312/2023, dated September 29, 2023 issued by the minister of labour. On paper, they’re permitted to work once nine months have passed after lodging an application for international protection. Prior to getting hired, they’re entitled to benefits. But since the nine months is far more than the time it typically takes to process an application – though there are exceptions – in practice asylum seekers are unlikely to get work while waiting. The sectors where asylum seekers may work include agriculture, farming, fisheries, animal shelters and pet hotels, manufacturing/processing, waste management, trade/repairs, service provision, food and hospitality, and laundromat services. The specific professions permitted within each sector are set out in the ministerial decree. Regarding the number of asylum seekers currently working, the competent authority responsible for providing this information is the Labour Office. We queried the labour ministry for these numbers, but did not receive a response by the time of this report. How long can asylum seekers remain? There’s no fixed maximum duration for a person’s status as an asylum seeker, the deputy migration ministry said to a follow-up question. An applicant for international protection has the right to remain in the Republic from the date of submitting an application until a final decision is issued on their application by the Asylum Service and/or by the International Protection Administrative Court following an appeal. If the Asylum Service issues a negative decision and the applicant does not lodge an appeal, the applicant has the right to remain in Cyprus until the applicable deadline for submitting an appeal expires. This deadline is 20 or 10 days, depending on the type of examination procedure. The duration of an applicant’s right to remain is therefore linked to the completion of the asylum procedure and any applicable appeal proceedings, rather than being subject to a cap. If the asylum application is successful, the beneficiary can remain in Cyprus until the circumstances dictating the granting of international protection have ceased. What has changed as asylum applications fall? This week Deputy Migration Minister Nicholas Ioannides told MPs that pending asylum applications had fallen to fewer than 12,500 from around 24,000 when the deputy ministry was established in June 2024. We next asked the deputy ministry about any policy changes vis-à-vis third-country nationals, given the drastic drop in asylum seekers. Their response: “The significant reduction in asylum applications and irregular arrivals does not alter the fundamental objectives of Cyprus’ migration policy. The government will continue its efforts to prevent and combat irregular migration and abuse of migration procedures, while ensuring that international protection is granted to those who are genuinely entitled to it.” Foreign workers on a construction site but labour shortages remain The deputy ministry stressed that asylum seekers are not admitted to Cyprus for labour market purposes. “Access to employment is provided under specific conditions and in limited sectors, primarily to enable applicants to support themselves while their applications are being examined. Addressing the long-term needs of the labour market therefore requires dedicated legal migration channels that are targeted, regulated and responsive to genuine economic needs.” Those who have been granted asylum or international protections may work without any restrictions in terms of sectors/professions as long as they status exists. Asked about the gripes from construction contractors regarding lack of workers, and the simultaneous departure of many Syrians, the deputy migration ministry said that following developments in Syria, Cyprus introduced a special voluntary return scheme for Syrian families in 2025 combining return assistance with the possibility for one spouse to remain legally employed in Cyprus for a defined period. “Owing to its positive results, the scheme was enhanced and repeated in 2026,” the deputy ministry said. The initiative seeks to balance voluntary returns with the needs of the labour market by allowing experienced workers already present in Cyprus to remain in employment through legal and controlled channels. Employers seeking to recruit third-country nationals, including in the construction sector, are subject to the procedures and conditions established under Cyprus’ labour migration policy. Applications for vacancies are examined by the Department of Labour, while residence and employment permits are subsequently issued by the Migration Department. “Cyprus has also strengthened cooperation with countries such as Egypt through structured labour mobility arrangements, monitored by the Ministry of Labour, that facilitate legal recruitment, while ensuring appropriate oversight and the protection of workers’ rights by the competent authorities of the Republic.” Why are delivery drivers being recruited from abroad? Moving onto the employment agencies bringing over delivery drivers, we asked why this is the case given the number of asylum recipients who could do this work. The deputy ministry said employment in the food delivery sector is subject to a ‘labour market test’ carried out by the Department of Labour. Asylum seekers and third-country national students who are lawfully present in the Republic also have access to employment in the food-delivery business, subject to the conditions laid down in the relevant legislation and an employment contract approved by the competent authority. “Where the Department of Labour approves an employer’s request and stamps an employment contract, followed by the issuance of a residence and employment permit by the migration authorities, this means that the labour market test has demonstrated that the employer’s staffing needs could not be adequately met by the available Cypriot or EU workforce, or by other categories of persons already lawfully residing in the Republic who have access to employment in the food delivery sector.” Approval is granted only where labour market testing demonstrates a genuine shortage of available workers already present in the Republic. Foreign students from non-EU countries are permitted to engage in part-time employment during their studies. These individuals have access to employment provided they have been admitted to recognised institutions of higher education, are enrolled in a full-time course of study, have completed their first academic semester and have enrolled in their second academic semester. Employment must take place outside the student’s study hours. Currently, working hours must not exceed 20 hours per week. During periods when classes are not in session, working hours must not exceed 38 hours per week. The students may be employed as domestic workers and in occupations falling within the following sectors: hospitality; manufacturing/industry; services; wholesale and retail trade; agriculture and livestock farming; and health and social care. Up-to-date data on the number of third-country nationals studying in Cyprus has yet to be published. But according to a ministry of education report mapping the 2023-2024 academic year, there were a total of 58,941 students enrolled in colleges and universities. Non-EU nationals comprised 16 per cent (or 9,430 individuals), EU nationals 40.2 per cent, and Cypriots 43.8 per cent.