Social Contributions and NHIS
Social Insurance and National health care system
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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.
Contribution rates.
| Status | Rate |
|---|---|
|
Self-employed individuals
|
15,6% |
|
Employee |
8,3% |
|
Employer |
8,3% |
|
Employer’s contribution to the Redundancy Fund |
1,2% |
|
Employer’s contribution to the Human Resource Development Authority Fund |
0,5% |
|
Social Cohesion Fund |
2% |
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.
| Profession | Weekly | Yearly |
|---|---|---|
|
|
€ |
€ |
|
Exercising a profession for a period not exceeding 10 years for a period exceeding 10 years |
387 783 |
20.123 40.704 |
|
Wholesalers, estate agents and other entrepreneurs |
783 |
40.704 |
|
Skilled workers |
378 |
19.666 |
|
Builders and persons practicing a profession relevant to the building industry |
475 |
24.696 |
|
Travelling salesmen, postmen, waste collectors, miners, sailors, salesmen, farmers, stock-farmers, fishermen and similar occupations |
264 |
13.720 |
|
Teachers (university, pre-primary, primary and secondary education, assistants and special teachers)
|
264 756 |
19.666 39.331 |
|
Secretaries, typists, cashiers, technical assistants, media associates, drivers of transportation media, operators of excavators and similar occupations |
378 |
19.666 |
|
Cleaners, messengers, guards and shop owners |
361 |
18.751 |
|
Butchers, bakers, confectioners, packers of fruits, meat, milk, tobacco and similar occupations |
290 |
15.092 |
|
Designers, computer users, marine engineers, agents, musicians, magicians and persons without an occupation |
387 |
20.123 |
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 | |
|---|---|---|---|
|
(a) |
Employees |
Own income |
2,65% |
|
(b) |
Employers |
Employees’
income |
2.90% |
|
(c) |
Self-employed |
Own income |
4,00% |
|
(d) |
Pensioners |
On pension |
2,65% |
|
(e) |
Persons holding office |
Officers’
income |
2,65% |
|
(f) |
Republic of Cyprus or
Natural/Legal person
responsible for the
remuneration of persons
holding an office |
Officers’
income |
2,90% |
|
(g) |
Persons earning rental,
interest, dividend and
other income |
Rental, Interest,
Dividend Income
etc |
2,65% |
|
(h) |
Republic’s Consolidated
Fund |
Emoluments/
Pensions of
persons (a), (c),
(d) and (e) |
4,70% |
