What are the employer payroll contributions in Cyprus?
In 2026 employers pay social insurance at 8.8%, GESY at 2.90%, the Redundancy Fund at 1.2%, the Industrial Training Fund at 0.5% and the Social Cohesion Fund at 2.0%. Employees pay 8.8% and 2.65%.
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Detailed Explanation
## Employer contributions
Employers pay social insurance of 8.8%, GESY of 2.90%, the Redundancy Fund at 1.2%, the Human Resources Development (Industrial Training) Fund at 0.5% and the Social Cohesion Fund at 2.0%. Together these come to about 15.4% of gross salary before caps.
## Employee and self-employed rates
Employees pay social insurance of 8.8% and GESY of 2.65%. Self-employed people pay social insurance of 16.6% and GESY of 4.00%.
## Caps
For 2026 the maximum insurable earnings are €1,325 a week, €5,742 a month and €68,904 a year. They apply to social insurance and the employer funds, except the Social Cohesion Fund, which applies to total earnings without a cap. GESY is capped separately at €180,000 of total annual income per person.
## Deadlines and hiring
PAYE withheld tax, social insurance and GESY are due by the end of the month following the payroll month. New employees must be declared through ERGANI at least 1 working day before they start. The employer's annual return is due by 30 April.
## What Finn does
Finn estimates employer cost, tracks the monthly deadline and reminds you about ERGANI before a start date.
Source: https://www.businessincyprus.gov.cy/social-insurance-registration-and-contributions/
Real-World Examples
Employee on €3,000 a month
Employer social insurance is €264.00 at 8.8% and employer GESY is €87.00 at 2.90%, before the other funds.
High earner
An employee earns above €5,742 a month. Social insurance stops at the cap, but the cohesion fund keeps applying to total earnings.
First hire
A company registers with Social Insurance, notifies ERGANI and then runs its first payroll.
Common Mistakes to Avoid
- Applying the cap to the Social Cohesion Fund
- Forgetting GESY on employer and employee sides
- Not registering before the first hire
- Missing the April annual return
Frequently Asked Questions
What is the employer social insurance rate?
8.8% in 2026.
What is the monthly cap?
€5,742 of insurable earnings for 2026.
When does the rate next change?
The social insurance rate steps up every 5 years, with the next increase in January 2029.
When is payroll due?
By the end of the month following the payroll month.
How do I notify a new hire?
Through ERGANI, at least 1 working day before the start.
Practical Tips
- Include all five employer contributions in cost estimates
- Register with Social Insurance before the first hire
- Remember the cohesion fund is uncapped
- Diarise 30 April for the annual return
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