Cyprus Social Contributions Guide 2026
Cyprus has a two-part social contribution system: Social Insurance (SI) at 8.3% each for employee and employer, capped at EUR 5,556 monthly earnings, and the General Healthcare System (GHS/GesY) at 2.65% for employees and 2.9% for employers with no earnings cap.
Social contributions in Cyprus are administered by the Social Insurance Services (Υπηρεσίες Κοινωνικών Ασφαλίσεων) and the Health Insurance Organisation (Οργανισμός Ασφάλισης Υγείας) for GHS. For related guidance, see our Personal Tax Guide → and Pension Guide →.
Social Insurance Contributions
Social Insurance covers pensions, unemployment benefits, sickness benefits, maternity benefits, and other social protection. The rates for 2026:
- Employee contribution: 8.3% of gross earnings
- Employer contribution: 8.3% of gross earnings
- Self-employed: 15.6% of assessable income (combined employee + employer share)
- Maximum insurable earnings: EUR 5,556 per month (capped)
- Contributions are calculated on gross earnings up to the cap; earnings above EUR 5,556/month are not subject to SI
GHS (GesY) Health Contributions
The General Healthcare System (GHS/GesY) was introduced in 2019 and provides universal healthcare coverage to all Cyprus residents. Contributions are as follows:
- Employee contribution: 2.65% of gross earnings (no cap)
- Employer contribution: 2.9% of gross earnings (no cap)
- Self-employed: 4.55% of assessable income (combined)
- Pensioners: 2.65% on pension income
- Income from dividends, interest, and rent: 2.65% (payers include individuals receiving SDC-exempt income)
Unlike Social Insurance, GHS contributions have no earnings cap. The system covers primary care, specialist care, hospitalisation, diagnostics, pharmaceuticals, and dental care for all beneficiaries. GesY is funded through contributions from employees, employers, self-employed, pensioners, and the state budget.
Total Employment Cost
For an employee earning EUR 5,556/month (cap):
- Employee deducts: 8.3% SI (EUR 461) + 2.65% GHS (EUR 147) = EUR 608/month
- Employer pays additional: 8.3% SI (EUR 461) + 2.9% GHS (EUR 161) = EUR 622/month
Total employer cost = EUR 6,178/month. The combined social burden is relatively low by EU standards, contributing to Cyprus's attractiveness as an employment destination.
Social Insurance Fund Benefits
- Old-age pension (from age 65, or 63 with reduced benefits)
- Unemployment benefit (up to 156 days)
- Sickness benefit (up to 156 days)
- Maternity, paternity, and parental benefits
- Disability and survivors' pensions
- Work injury benefits