1. Kouzalis LLC notes that contribute to the social insurance and relevant funds is mandatory under the existing Cypriot Legislation.

In case of employees, there is a total of 20.3% contribution calculated on the employee’s gross emoluments, of which 12% is payable  by the employer (employers contribution) and 8.3% is withheld from each employee’s gross emoluments (employees contribution)

Each employer has the responsibility to get registered to the Social Insurance Registrar and the calculated contributions should be paid, not later that at the end of the calendar month following the month that contributions relate to. Self-employed individuals contribution is calculated at the rate of 15.6% and is subject to upper and lower limits, depending on the self-employed person’s occupation.  A self-employed contribution is paid quarterly.

It should be noted that as from 1st March 2019, additional contributions regarding the General Health care System should be calculated and paid.

In case of the employees, there is a total of 3.55% (5.55% from 1/3/2020 onwards) contribution calculated on the employees gross emoluments, of which 1.85% (2.90% from 1/3/2020 onwards) is payable by the employer (employers contribution) and 1.7% (2.65% from 1/3/2020 onwards) is withheld from each employee’s gross emoluments (employees contribution)

For self-employed individuals, the General Healthcare Contribution is calculated at the rate of 2.55% (4.00% from 1/3/2020 onwards)

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