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Both employer and employee Social Insurance Contributions remain at 8,3%. The rate will increase in 2024 to 8,8% and 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 remains at 15,6%. The rate will increase 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 forEmployeeEmployerSelf-employed
20187,8%7,8%14,6%
2019-20238,3%8,3%15,6%
2024-20288,8%8,8%16,6%
2029-20339,3%9,3%17,6%
2034-20389,8%9,8%18,6%
2039+10,3%10,3%19,6%

 

The maximum level of insurable emoluments for 2020 is €54,864.

For employees paid weekly, the maximum insurable amount is €1,055 and for employees paid monthly €4,572.

Social cohesion fund and general healthcare system contributions are not affected by the maximum insurable amount and are always calculated on the gross emoluments,  however GHS contribution is capped at annual income of 180,000.

*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 and the GHS contribution.

The below table summarises the relevant rates applicable for 2020:

ContributionsEmployeeEmployerMaximum Insurable Amount
Social Insurance Contributions8,3%8,3%€54,864
Social Cohesion Fund2%N/A
Redundancy Fund1,2%€54,864
Industrial Training Fund0,50%€54,864
Holiday Fund (if not exempt)8%€54,864

 

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.

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 deduction for individuals was increased from 1/6th to 1/5th of their taxable income effective from 01/01/2019)

The rates will increase from 1 March 2020 as per the table below:

RefCategoryApplied OnFrom 1/3/2019From 1/3/2020
(i)EmployeesEmoluments1,7%2,65%
(ii)EmployersEmployees’ emoluments1,85%2,90%
(iii)Self-EmployedOwn Income2,55%4,00%
(iv)PensionersPension1,70%2,65%
(v)Persons Holding an officeOfficers’ Remuneration1,70%2,65%
(vi)Republic of Cyprus or Natural/Legal person responsible for the remuneration of persons holding an office 

Officers’ Remuneration

 

1,85%

 

2,90%

(vii)Persons earning rental, interest, dividend and other incomeRental, Interest, Dividend Income etc

 

1,70%2,65%
(viii)Republic’s Consolidated FundEmoluments/Pensions of persons (i), (iii), (iv) & (v)1,65%4,70%

 

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