Increase in social insurance contributions beginning January 1, 2024

The Social Insurance Contribution rates for both employers and employees are increasing by 0.5% as of January 1, 2024, and for self-employed persons by 1%.

According to the Cyprus Social Insurance Law 59(I)/2010, as modified, the contribution rates to the Social Insurance Fund will increase as follows on January 1, 2024:

Employees will be required to pay increased social insurance contributions beginning January 1, 2024.

The Department of Social Insurance Services establishes the maximum amount of earnings that can be used to calculate payments to the Social Insurance, Redundancy, Training, and Development Funds each year.

According to a statement made by the Social Insurance Services Department on November 29, 2023, the maximum amount of insurable wages for 2024 has been raised upwards from the previous year to €1.209 per week, €5.239 per month, and €62.868 per year.

In the case of employees, both the employer and the employee will increase their contributions to the Social Insurance Fund from 8.3% to 8.8% of insurable wages.

Contributions to the Social Cohesion Fund are computed on real earnings and are not subject to the aforesaid restrictions.

Self-employment social insurance contributions will become mandatory on January 1, 2024.

The payment rate to the Social Insurance Fund for self-employed people will rise from 15.6% to 16.6% on insurable earnings.

 

Please contact us for any further information on the tax treatment of the social contributions. 

Shanda Consult Team