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.

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 €4.572 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)


for a period not exceeding 10 years
for a period exceeding 10 years




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%
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