Social Insurance and National Health Insurance System Alert

Please see below several changes in respect to the Social Insurance contributions and the National Health Insurance System (NHIS) which are effective in 2020.

 

Social Insurance Rates 2020

The maximum amount of insurable earnings has increased from previous year to €1.055 per week, €4.572 per month and €54.864 per annum.

Contributions to the Social Cohesion Fund are calculated on actual earnings, not subject to the above caps.

 

SOCIAL INSURANCE CONTRIBUTIONS 2020

Fund

Employer

Employee

Social Insurance

8,3%

8,3%

C

Redundancy

1,2%

C

Training and Development

0,5%

C

Social Cohesion

2,0%

N.C

Total

12%

8,3%

C=Cap at EUR 4.572/month, N.C=No Cap

The contribution of self-employed persons will remain at 15.6% on income which is determined according to the following table:

Professional categories

Lower

Weekly

Limit €*

  1. Doctors, pharmacists, specialists in health matters (qualified), accountants, economists, lawyers and other professionals

 

Up to 10 years

>10 years                                                                                     

386,98

782,76

  1. Wholesalers, estate agents, directors (businessmen)

782,76

  1. Professors and teachers

 

Up to 10 years

> 10 years

378,19

756,37

  1. Builders and other persons related to construction industry businesses

474,93

  1. Drives, excavator drivers and other related professions, technicians, associates in media, machinery users (apart from the construction industry) assemblers of products, clerks, typists, cashiers, secretaries and technicians which do not fall in any category

 

378,19

  1. Shopkeepers, cleaners, messengers, guards and owners of dry cleaners

360,60

  1. Farmers, stock breeders, aviarists, fishermen and other related professions, hawkers, postmen, refuse collectors, workers in mines & quarries, marine workers specializing in underwater constructions, installators of forklift equipment, street sweepers and people responsible for provision of services and salesmen

263,85

  1. Butchers, bakers, confectioners and similar professions

290,24

  1. Designers, users of computers, ship engineers, agents and musicians, magicians, persons that do not fall in any other professional category

386,98

*Note: The maximum amount of insurable earnings is €1.055 per week for all the above categories.

National Health Insurance System (NHIS) Rates 2020

 

Under the NHIS rules, employers are contributing 1,85% and employees 1,70% on the employee’s gross earnings. Further, self-employed individuals are contributing 2,55% on their gross earnings.

As at 1st of March 2020, the NHIS contributions are increased to 2,90% for employers, to 2,65% for employees and to 4,00% for self-employed individuals.

Please note that NHIS contributions are payable up to maximum annual earnings of €180,000.

Please find below a table summarizing the contribution rates for National Health Insurance System in Cyprus:

Category

As from 1st March 2019

As from 1st March 2020

Employees

1,70%

2,65%

Employers

1,85%

2,90%

Self-employed

2,55%

4,00%

Income earners (e.g. rents, interests, dividends)

1,70%

2,65%

Persons holding office

1,70%

2,65%

Pensioners

1,70%

2,65%