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Social Insurance

Social insurance contributions are payable by the employer, employees and self-employed persons based on their insurance earnings.

The contributions rates by category as from 1 January 2014 are as follows:

Contributions

Employer

Employee

Self-employed

%

%

%

Social insurance fund

7.8*

7.8*

14.6*

Redundancy fund

1.2

 

 

Industrial training fund

0.5

 

 

Social cohesion fund

2.0

 

 

Central holiday fund

8.0**

 

 

 Notes:

  • Social insurance contributions are restricted to a maximum amount that is usually increased on an annual basis. The maximum amount that applied for 2018 is €54.396 (for weekly employees €1.046 and for monthly employees €4.533).
  • Social cohesion fund is calculated on total emoluments and has no maximum level.
  • Redundancy fund, industrial training fund and annual holiday fund are restricted to the maximum level as with the social insurance contributions.

* As from 1 January 2019, both employer and employee contributions will increase from 7,8% to 8,3%. Self-employed persons contributions will be increase from 14,6% to 15,6%.

** The employer is obliged to pay contributions to the Central holiday fund unless he obtains relevant exemption. A rate at 8% is the minimum contribution to the Central holiday fund.

The above should be used as a source of general information only. It is not intended to give a definitive statement of the Law and is subject to the Disclaimer.

For further details on these issues, please do not hesitate to contact us.