Cyprus Social Insurance Rates 2026: Employee, Employer and Self-Employed Contributions

Cyprus social insurance contributions for 2026 remain at the rates introduced in January 2024: 8.8% for employees, 8.8% for employers, and 16.6% for self-employed individuals. These apply on gross earnings up to the insurable ceiling of EUR 66,612 per year.

Employee and Employer Contributions

Both employees and employers each contribute 8.8% of gross salary to the Social Insurance Fund. The rates increased from 8.3% in January 2024 as part of the incremental schedule defined in the Social Insurance Law.

Contributions apply only up to the insurable earnings ceiling. From 1 January 2025, this ceiling is EUR 66,612 per year (EUR 5,551 per month). Income above this threshold is not subject to social insurance contributions.

Self-Employed Contributions

Self-employed individuals contribute 16.6% of their declared income to the Social Insurance Fund. This rate increased from 15.6% in January 2024. The same ceiling of EUR 66,612 applies.

GESY (Healthcare) Contributions

Social insurance contributions are paid separately from GESY (General Healthcare System) contributions. The two systems have different rates and different annual ceilings. For 2026:

• Employees contribute 2.65% of earnings to GESY.
• Employers contribute 2.90% of employee earnings to GESY.

• Self-employed contribute 4.00% of income to GESY.

The GESY annual ceiling is EUR 180,000, significantly higher than the social insurance ceiling.

Combined Deductions Per Employee

For an employee earning up to the social insurance ceiling, the combined mandatory deductions are:

• Employee: 8.8% (social insurance) + 2.65% (GESY) = 11.45% of gross salary.
• Employer: 8.8% (social insurance) + 2.90% (GESY) = 11.7% of gross salary, plus additional small contributions to the Redundancy Fund and Human Resources Development Fund (approximately 1.5% combined).

Scheduled Future Increases

Social insurance rates in Cyprus are set to increase gradually every five years under the current law. The next scheduled review falls in 2029. By 2039, rates are projected to reach approximately 10.3-10.7% for employees and employers, and 19.6-20.4% for self-employed individuals.

How to Pay

Social insurance contributions are managed through the Department of Social Insurance Services (DSIS). Employers register employees and remit contributions on a quarterly basis. Self-employed individuals file and pay directly via the DSIS portal.

Source: PwC Worldwide Tax Summaries - Cyprus, Individual: Other Taxes (2026). Social Insurance Law of Cyprus.