Critical changes have been made in order to ensure the viability of the Social Insurance Fund. Increases in contributions to the Fund for employers, employees, self-employed and voluntary insured individuals will be foreseen every five years until 2039.
The new contribution rates for the years 2019 to 2023 will take effect from 1st January 2019. The social insurance contributions will be increased by 0.5% from 7.8% to 8.3%. This will apply both for the employer as a contribution and for the employee as a deduction.
Voluntary insured individuals’ contributions will be increased from 14% to 15% while the contribution by the voluntary insured who are employed by a Cypriot employer abroad will be increased from 15.6% to 16.6%.
The self-employed contributions will be increased from 14.6% to 15.6%.
Example:
Let’s say the Employee gross salary is €1.200.
As per the new deductions, from the employee’s salary will be deducted the amount €99,6 for social insurance and also the amount €20,4 for National Health Insurance System. The employee will get net salary €1.080.
