Cyprus increases social insurance contributions and introduces national health insurance contributions
The Social Security Fund has announced the increase of the employees’ social security contributions as of January 1st 2019 as well as the initiation of the national health insurance contributions as of March 1st, 2019.
Under the social insurance legislation and as from January 1st 2019, 8.3% of the gross salary shall be deducted by the employee and contributed to the social security fund while at the same time an equal percentage shall be contributed by the employer and 4.9% from the Consolidated Fund of the Republic of Cyprus. As far as self-employed persons are concerned, the percentage has risen to 15.6% whereas 4.9% shall be paid by the Consolidated Fund of the Republic of Cyprus.
In parallel, as of March 1st, 2019, Cyprus will inaugurate its new national health system contributions. A total of 1,70% shall be paid by the employee on the gross salary whereas 1,85% shall be borne by the employer. Contributions are paid on all employee annual earnings up to €180.000.
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