Social insurance and other contributions

Social insurance contributions are made by individuals employed or self-employed in Cyprus. An employer also makes contributions in respect of its employees.

The contributions are calculated by applying the relevant contribution rates to the weekly wages or monthly salaries, subject to certain income limits.

Contribution rates

Contributions	Employer	Employee	Self-employed
	%	%	%
Social  Insurance Fund	7.8	7.8	14.6
Redundancy Fund	1.2	–	–
Industrial Training	0.5	–	–
Social Cohesion Fund	2.0	–	–

Income limits

Employee and employer contributions (other than contributions to the social cohesion fund) are subject to upper income limits that are set on an annual basis.

Contributions by self-employed individuals are subject to both a lower and an upper income limit that are also set on an annual basis. The limits differ depending on the occupational category of the self-employed individual.

Contribution due dates

The employees’ social insurance contributions should be withheld by the employer on a monthly basis. These contributions along with the employer’s contributions should be paid to the Social Insurance Department not later than the end of the calendar month following the month that the salaries relate to.

The social insurance and other contributions of self-employed individuals should be paid to the Social Insurance Department quarterly after the end of each quarter, as follows:

 

Quarter	Due date
January to March	10 May
April to June	10 August
July to September	10 November
October to December	10 February