Very soon, all employees in Cyprus will be required to register with ERGANI, following the recent parliamentary approval of labor ministry bills addressing unregistered employment.

Under the new law, all private-sector employees—around 470,000 individuals—must be registered by their employers in the ERGANI system, along with their employment terms. Previously, ERGANI, launched on September 13, 2021, required registration only for those hired after its launch date and to be registered a day before employment.

The new legislation introduces two major changes: all private-sector employees will now be registered in ERGANI, and their employment terms, including individual contracts, must be added to the system.

According to the Ministry of Labor, the goal is to combat unregistered work. However, the benefits extend beyond this, as officials will also be able to monitor actual wages and verify if Social Insurance contributions align with those earnings. Additionally, the changes aim to secure the labor rights of many employees and establish official records in ERGANI to resolve employer-employee disputes fairly.

Employers have generally welcomed these changes, though some have expressed concerns about the timeframe for updating employee records in ERGANI. Minister of Labor Yiannis Panayiotou, in response to Brief’s inquiry, acknowledged these concerns, confirming that employers will have sufficient time to register their employees in the system.

When asked about the implementation date of the new law, which requires a ministerial decree, Mr. Panayiotou indicated that it would be enacted soon, without committing to a specific timeline.