Social Contributions and NHIS
Social Insurance and National health care system
Social Insurance in Cyprus.
Social Insurance contributions in Cyprus have a rate applied up to a level of earnings. For the year 2020 the maximum level of earnings has slightly increased (from 2019) to €54.864. The rate for both employers and employees are shared, and is at 8.3% as from January 2019 and the next five years. The social insurance contributions rate will be increased by 0.5% every five years until reaching 10.3% on January 2039.
Employer’s contribution to the Redundancy Fund
Employer’s contribution to the Human Resource Development Authority Fund
Social Cohesion Fund
For incomes above €4840, a cap is applied. Contributions to the Social Cohesion Fund are calculated on actual earnings, not subject to the above caps.
Social Insurance Contributions for Self-Employed.
Social contributions for self-employed are at 15.6% and will remain unchanged. Self-employed contributions are determined according to the below minimum limit of earnings table.
Exercising a profession
for a period not exceeding 10 years
for a period exceeding 10 years
Wholesalers, estate agents and other entrepreneurs
Builders and persons practicing a profession relevant to the building industry
Travelling salesmen, postmen, waste collectors, miners, sailors, salesmen, farmers, stock-farmers, fishermen and similar occupations
Teachers (university, pre-primary, primary and secondary education, assistants and special teachers)
Secretaries, typists, cashiers, technical assistants, media associates, drivers of transportation media, operators of excavators and similar occupations
Cleaners, messengers, guards and shop owners
Butchers, bakers, confectioners, packers of fruits, meat, milk, tobacco and similar occupations
Designers, computer users, marine engineers, agents, musicians, magicians and persons without an occupation
National Health Insurance System (NHIS).
Employers and employees contribute 1.85% and 1.70% on the employee’s gross earnings respectively for the NHIS. For the self-employed individuals the contribution is 2.55% on their gross earnings. It is important to note that that the contributions are to be revised upwards as of the 1st of March 2020 to 2,90% for employers, to 2.65% for employees and to 4,00% for self-employed individuals.
|Category||Applied on||Percentage as from 01/03/2020|
Persons holding office
Republic of Cyprus or Natural/Legal person responsible for the remuneration of persons holding an office
Persons earning rental, interest, dividend and other income
Rental, Interest, Dividend Income etc
Republic’s Consolidated Fund
Emoluments/ Pensions of persons (a), (c), (d) and (e)