Social Insurance Contributions and Introduction of NHS System 2024
SOCIAL INSURANCE CONTRIBUTIONS AND INTRODUCTION OF NHS SYSTEM 2024
Effective from 1st January 2024, there will be a change in the contribution rates to the Social Insurance Fund, as per the latest amendments in the Cyprus Social Insurance Law (59(I)/2010).
Both employer and employee Social Insurance Contributions will increase from 8,3% to 8,8% thereafter will increase by 0,5% every five years, until it reaches 10,3%, as from 1 January 2039.
The rate for self-employed persons will increase from 15,6% to 16,6% in 2024 and thereafter will increase by 1% every five years, until it reaches 19,6%, as from 1 January 2039. The amount of contributions by self-employed persons is subject to a lower and a maximum limit, depending on the profession or trade of the self-employed person.
Below is set a table summarising the relevant contributions:
| Applicable for | Employee | Employer | Self-employed |
| 2018 | 7,8% | 7,8% | 14,6% |
| 2019-2023 | 8,3% | 8,3% | 15,6% |
| 2024-2028 | 8,8% | 8,8% | 16,6% |
| 2029-2033 | 9,3% | 9,3% | 17,6% |
| 2034-2038 | 9,8% | 9,8% | 18,6% |
| 2039+ | 10,3% | 10,3% | 19,6% |
The maximum level of insurable emoluments for 2024 is €62,868 pa. For employees paid weekly, the maximum insurable amount is €1,209 and for employees paid monthly €5,239.
*If the cumulative emoluments (from January-December) reach the maximum insurable amount, no social insurance contributions will be deducted from the 13th salary, except for the social cohesion fund contributions which are which based on actual earnings and are not bound by these maximum limits.
GHS fund us restricted to €4770 annually.
The below table summarises the relevant rates applicable for 2024:
| Contributions | Employee | Employer | Maximum Insurable Amount |
| Social Insurance Contributions | 8,8% | 8,8% | €62,868 |
| Social Cohesion Fund | – | 2% | N/A |
| Redundancy Fund | – | 1,2% | €62,868 |
| Industrial Training Fund | – | 0,50% | €62,868 |
| Holiday Fund (if not exempt) | – | 8% | €62,868 |
General Healthcare System (GHS)
The General Healthcare System Contributions are only payable by Individuals and came into effect as from 1 March 2019. They are capped at annual income of €180,000 and are applicable to all cyprus tax residents unless they can provide the S1 Certificate from another European country.
Non-domiciled individuals are not exempt from GHS contributions. Non-cyprus tax residents are subject to GHS contributions only in case they receive rental income from properties situated in Cyprus, or if they get profits or other benefits from any office or employment exercised in the Republic.
Contributions to the GHS are deductible from the employer’s taxable income and of the individuals taxable income (maximum annual allowances for individuals is restricted to 1/5th of their taxable income)
The rates of GHS contributions and are as per the table below :
| Ref | Category | Applied On | From 1/3/2020 |
| (i) | Employees | Emoluments | 2,65% |
| (ii) | Employers | Employees’ emoluments | 2,90% |
| (iii) | Self-Employed | Own Income | 4,00% |
| (iv) | Pensioners | Pension | 2,65% |
| (v) |
Persons Holding an office
|
Officers’ Remuneration | 2,65% |
| (vi) |
Republic of Cyprus or Natural/Legal person responsible for the remuneration of persons holding an office
|
Officers’ Remuneration | 2,90% |
| (vii) |
Persons earning rental, interest, dividend and other income
|
Rental, Interest, Dividend Income etc
|
2,65% |
| (viii) | Republic’s Consolidated Fund |
Emoluments/Pensions of persons (i), (iii), (iv) and (v)
|
4,70% |
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