Commencement of General Healthcare System

The General Healthcare System Law of 2010 (as amended in 2017), is set to come into effect in 2019. Under this law, the Republic of Cyprus will offer its citizens a General Healthcare System (GHS), a modern, people-centric healthcare system that aims to provide all citizens with equal access to healthcare services. For the implementation of the GHS, a special fund was established for the purpose of gathering the relevant contributions from employers and employees, from which all payments to providers of healthcare services will be made. The main source of funding for the GHS will be these contributions. The first phase of contributions will go into effect on 1^st March 2019, while the full implementation is estimated to begin on 1^st March 2020. Employers are responsible for paying both their own and their employees’ contributions through Social Insurance Services, by means of deductions from employees’ salaries. In the table below, you may find the relevant contributions for 2019, as set by the General Healthcare System (Amending) Law of 2017:

Employee (public &private sector)	Employer (public & private sector)
1,70%	1,85%

It should be noted that the total maximum GHS contributions are paid on all employee earnings (earnings as defined in the Social Insurance Law) up to a maximum of €180,000. This includes dividends, interest and rental income. For persons who are not tax residents of Cyprus, contributions will be paid only from the income, earnings, and pensions that derive from the Republic of Cyprus, excluding dividends and interest. For more information on the GHS, you may visit their website at www.gesy.org.cy. To find out more about what your contributions will be, contact our expert team at Lappas & Co.