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SOCIAL INSURANCE CONTRIBUTIONS
Rates
Employers, employees and self-employed persons are required to contribute to the following funds:
|
Percentage of earnings |
|||
| Fund |
Employer |
Employee |
Self-employed |
|
% |
% |
% |
|
| Social Insurance** |
8,3 |
8,3 |
15,6 |
| Social cohesion fund* |
2,0 |
||
| Redundancy fund |
1,2 |
||
| Industrial Training fund |
0,5 |
___ |
___ |
| Total |
12,0 |
8,3 |
15,6 |
Holiday fund (if not exempted) 8,0 % (The percentage varies depending on the type of activity)
*The amount contributed to social cohesion fund is calculated on the entire emoluments regardless of the paid social insurance contribution’s maximum level of emoluments.
**The rates apply as from 1 January 2019 and will increase by 1% every 5 years until 2039.
Notes:
• Level of emoluments subject to social insurance contributions:
|
Weekly |
Monthly |
Yearly |
|
| Weekly employees |
€1.117 |
– |
€58.080 |
| Monthly employees |
– |
€4.840 |
€58.080 |
• The minimum amount of emoluments of self-employed persons on which social insurance is contributed varies depending on the nature of the activity.
Cyprus National Health System Contributions (effective from 1 March 2019)
As per the recent legislation governing, amongst others, the level of contributions to the Republic’s National Health System (N.74 (I) 2017), it is provided that Cyprus nationals, as well as other qualifying employees and their employers, should contribute to the National Health System, as noted below:
| Categories |
Phase 1 |
Phase 2 |
|
From 1/3/2019 – 29/2/2020 |
From 1/3/2020 – onwards |
|
| Employees, Pensioners, unearned income and holders of authority office |
1,70% |
2,65% |
| Employer |
1,85% |
2,90% |
| Government of Cyprus |
1,65% |
4,70% |
| Self employed |
2,55% |
4,00% |
Contributions are to be applied to a maximum level of income (including interest, dividends, rental income, etc) of €180.000 per annum. For the months 4-6/2020 the rates remained as in the 1st phase.
Contact us
For more information please contact
Email: info@pkf-nic.com
Last update: March 2022
The authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.
Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.
PKF Cyprus firms are member firms of the PKF International Limited network of legally independent firms and do not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
