SOCIAL INSURANCE & GENERAL HEALTH SYSTEM CONTRIBUTIONS - YEAR 2023
Overview
Social Insurance and General Healthcare System (GHS) contributions are compulsory payments to the Government of Cyprus and are based and calculated on the gross salary, other earnings, benefits in kinds and any other type of financial benefit that can be considered as applicable by the Cyprus Social Insurance Law with some exemptions.
Social Insurance for Employees and employers
i) Social Insurance for employee – 8.3%
ii) Social Insurance for employer – 8.3%
iii) Redundancy Fund for employer only – 2%
iv)Industrial Training Fund for employer only – 0.5%
v) Holiday Fund for employer only (if not exempted) – 0.5%
Notes:
Not 100% of the gross salaries are subjected to the above %. There is a limit of €60,060/year or €5.050/month or €1,155/week. The restriction is not applicable for the calculation and payment of the social cohesion fund.
Social Insurance for self-employed
Social Insurance for self-employed is calculated on 15.6% of their earnings and is determined by the Social Insurance department during your registration. A visit is necessary and it cannot be done through internet.
For each category profession there are minimum limits in case you cannot estimate your earnings.
GHS for Employees and employers (based on gross salaries)
i) GHS for employee – 2.65%
ii) GHS for employer – 2.90%
GHS for self-employed
Self-employed pay 4% on its income.
Notes:
GHS is payable also on pensions (2,65%), rent (2,65%), interest (2,65%), dividends (2,65%). Exemptions exist.
Disclaimer: The information provided in this article is for general awareness and is not intended to be and do not constitute a professional advice.