Cyprus social insurance contributions have had an increase from January 01, 2019, whilst contributions towards the new national health scheme, which will be implemented later in the year, will begin from March 01, 2019.
The increase of 0.5% from the start of the year is in line with the provisions of the Social Insurance Law 2010, and sees both employer and employee contributions on insurable earnings to the Social Insurance Fund increase from 7.8% to 8.3%.
Employer contribution on Redundancy Fund, Industrial Training and Social Cohesion Fund all remain the same at 1,2%, 0,5%, and 2,0% respectively, and the total employer contribution is at 12%.
Self-employed individuals have a 1% increase on their contributions from 14.6% to 15.6%.
The contributions for the National Health Insurance System (NHIS) that commence from March 01 will see employers contribute 1.85% on their employee’s earnings, and employees contributing 1,70%. The employer is responsible for paying both their own and their employees’ contributions through the Social Insurance Fund, by means of deduction.
The NHIS contributions are paid on all employee earnings up to €180.000 and the current €54.396 limit applied to Social Insurance Contributions does not apply to the NHIS contributions.