Social Insurance Contributions Increase in 2019
The Social Insurance Scheme of the Republic of Cyprus is financed by contributions paid by employers, insured persons, and the State, as a percentage of an employee’s insurable earnings. Employers are liable to pay contributions to the Social Insurance, Annual Holidays, Redundancy, Human Resource Development and Social Cohesion Funds for each of their employees.
As of 1 January 2019, an increase in Social Insurance Fund contributions will come into effect. According to the provisions of the Social Insurance Law of 2010, the rate of contributions on insurable earnings to the Social Insurance Fund will increase by 0.5% by both the employer and the employee, effectively raising the rate from 7.8% to 8.3%.
The 2019 contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:
|Social Insurance Contributions||8,3%||8,3%|
|Social Cohesion Fund||2,0%|
|Industrial Training Fund||0,5%|
|Holiday Fund (if not exempt)||8,0%|
Increase of Social Insurance maximum level of emoluments:
The rate of Social Insurance contributions as outlined above are applied to a maximum level of emoluments, with the exception of the social cohesion fund. As of 1st January 2019, the maximum level of emoluments will increase to €54.648 (weekly €1.051/monthly €4.554). To find out more about Social Insurance contributions and how these will affect you and your business, contact our expert team at Lappas & Co.