Upcoming increase in Social Insurance Fund Contribution Rates from January 1, 2024

Written by Stelios Spiliotis
21 December, 2023

In accordance with the Cyprus Social Insurance Law 59(I)/2010, as revised, the Social Insurance Fund contribution rates will undergo adjustments effective January 1, 2024:

  • For employed individuals, both employers and employees will have an increase in their contribution rates to the Social Insurance Fund, rising from 8.3% to 8.8% on insurable earnings.
  • Self-employed individuals will also have an increase in the contribution rate to the Social Insurance Fund, rising from 15.6% to 16.6% on insurable earnings.

Social insurance contributions applicable to employees effective 1st January 2024

The Department of Social Insurance Services annually establishes the maximum earnings used for calculating contributions to the Social Insurance, Redundancy, Training, and Development Funds. In accordance with an announcement released on 29/11/2023 by the Social Insurance Services Department, the maximum insurable earnings for 2024 have been revised upward from the preceding year to €1,209 per week, €5,239 per month, and €62,868 per annum.

It is important to note that contributions to the Social Cohesion Fund are computed based on actual earnings, and they are not subject to the aforementioned caps.

For detailed information on the applicable contribution rates payable by employers and employees for the year 2024, please refer to the summary table below:

Social Insurance8.8%8.8%
Training and development0.5%
Social Cohesion2.0%

Social Insurance Contributions for Self-Employed Individuals as of January 1, 2024

Starting from January 1, 2024, the contribution rate for self-employed individuals will be adjusted to 16.6% on insurable earnings for the year 2024.

Minimum Insurable Earnings by Occupational Category

Refer to the table outlining the minimum applicable insurable earnings for self-employed persons in 2024, categorized by occupation. This information is provided by the Department of Social Insurance Services and can be accessed here.

Amounts of Social Insurance Contributions Due for 2024

Access the table issued by the Department of Social Insurance Services, which summarizes the quarterly contribution amounts for 2024. These figures are based on the minimum weekly insurable earnings of self-employed individuals, as detailed in the aforementioned table. The document can be accessed here.

We are available for any additional inquiries or clarifications you may require.

You May Also Like…