Social Insurance and other Contributions

The Social Insurance Scheme is financed by the employers and insured persons contributions. The employer is obliged to pay the contributions (his rate and the rate of the employee) to the Social Insurance Fund. Contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:

Fund

Employer %

Employee %

Self-employed %

Social Insurance

8,3

8,3

15,6**

Social cohesion

2

-

-

Redundancy

1,2

-

-

Industrial Training

0,5

-

-

Holiday (exemptions apply)

8

-

-

The Social Insurance Scheme applies to all workers (employed and self-employed). Voluntary insurance is allowed to persons who wish to continue insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The maximum amount of insurable earnings for the purpose of payment of contributions is fixed by Regulations. This amount is usually revised every year. In case that the wage or salary is higher than the maximum amount of insurable earnings, no contribution is paid on that higher amount. The maximum amount for the year 2019 is €4.554.

Deadlines for payment of contributions

Employers pay their contributions (including the employee’s share), by the end of the calendar month which follows the month for which contributions are due. For example, for January 2019 contributions must be paid by the 28th of February 2019. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day. Self-employed persons pay their contributions quarterly within one month and ten days from the end of each quarter. For example, January-March 2019 contributions must be paid by 10th of May 2019. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Payment of contributions

Contributions can be paid in cash or with bank cheques issued in favour of the Director of Social Insurance Services. The employer or a representative of the employer can visit any Social Insurance District Office. He/she can also send the “Statement of Earnings and Contributions” by post to the Social Insurance District Office and in such case the payment of contributions must be made by bank cheques. Contributions can also be paid online using the method of Direct Debit.

Additional charge for late payment

In case of delay in the payment of contributions by an employer, an additional charge must be paid to the Social Insurance Fund and the Social Cohesion Fund fixed as a percentage of the contributions due and rising progressively according to the time of delay. For the first month of delay the charge is 3% and increases by 3% for each month of delay, after the first month, up to a maximum of 27%.