What is Social Insurance (Cyprus)?
Cypriot social insurance is 8.8% from the employer and 8.8% from the employee on insurable earnings, and 16.6% for the self-employed. Insurable earnings are capped at €5,742 a month in 2026.
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Current Rate (2026 cap €1,325 a week, €5,742 a month, €68,904 a year)
Employer 8.8%, employee 8.8%, self-employed 16.6%
Example
An employee earns €4,000 in a month, below the cap. Employer social insurance is €352.00 at 8.8%, and the employee pays the same.
How Social Insurance (Cyprus) works in Cyprus
Employers also pay the Redundancy Fund at 1.2%, the Human Resources Development (Industrial Training) Fund at 0.5% and the Social Cohesion Fund at 2.0%. The cohesion fund applies to total earnings without the cap.
The social insurance rate steps up every five years, with the next increase in January 2029.
New employees must be declared through the ERGANI system at least one working day before they start.
Related terms
GESY is Cyprus's national health system. Contributions are 2.90% from employers and 2.65% from employees, collected through payroll on income up to €180,000 a year per person.
The HE32 is the annual return every Cypriot company files with the Registrar of Companies, within 28 days of its annual-return date, with the previous year's financial statements attached.
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