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Social Insurance and National Health contributions for 2020

Social Insurance and National Health contributions for 2020

In 2020, Social Insurance contributions remain the same as in 2019 whereas contributions to the General Healthcare System will be increased on 1 March 2020. This increase is offset for individuals by the recent increase of the maximum annual tax deduction from 1/6th to 1/5th of their taxable income.

Social Insurance Contributions for 2020

The Social Insurance Contributions for 2020 are summarised below:

Contributions Employee Employer Self-Employed
Social Insurance 8,3% 8,3% 15,6%
Social Cohesion Fund   2,0%  
Redundancy Fund   1,2%  
Industrial Training Fund   0,5%  
Holiday Fund (if not exempt)   8,0%  

The Social Insurance Office lays down yearly the maximum amount of earnings used for the purpose of calculating the contributions to the Social Insurance, Redundancy, Training and Development Funds.

The maximum amount of insurable earnings has been revised upwards from the previous year to €1.055 per week, €4.572 per month and €54.864 per annum.

Contributions to the Social Cohesion Fund are calculated on actual earnings, not subject to the above caps.

General Health System Contributions for 2020

Αs from 1 March 2019 the General Healthcare System Law of 2001 (GHS), as amended, came into effect.

Individuals, employers and the government contribute to the GHS.

Initially, the contributions were set at 1,70% for employees and pensioners, 1,85% for employers, 1,65% for the government, and 2,55% for self-employed individuals. As from 1 March 2020, the contributions will increase to 2,65% for employees and pensioners, 2,90% for employers, 4,70% for the government and 4% for self-employed. The contributions will be deducted from the entire earnings of the individuals (including dividends, interest and rental income) up to a maximum of €180.000.

Below is set a table summarizing the relevant contributions:

Applicable From Applicable From
Ref Category Sources of Income 01/03/2019 01/03/2020
(i) Employees Emoluments 1,70% 2,65%
(ii) Employers  Employees’ emoluments 1,85% 2,90%
(iii) Self-Employed Own Income 2,55% 4,00%
(iv) Pensioners Pension 1,70% 2,65%
(v) Persons holding an office Officers’ Remuneration 1,70% 2,65%
(vi) Republic of Cyprus or Natural/Legal person responsible for the remuneration of persons holding an office Officers’ Remuneration 1,85% 2,90%
(vii) Persons earning rental, interest, dividend and other income Rent, interest and dividend 1,70% 2,65%
(viii) Republic’s Consolidated Fund Emoluments/pensions of persons in (i), (iii), (iv) and (v)  1,65% 4,70%

It is noted that for GHS contributions purposes, domicility of the individual is irrelevant.

The contribution of self-employed persons will remain unchanged at 15.6% on income which is determined according to the following table:

Professional CategoriesLower weekly Limit € *
Doctors, pharmacists, specialists in health matters (qualified), accountants, economists, lawyers and other professionals
Up to 10 years > 10 years
386,98
782,76
Wholesalers, estate agents, directors (businessmen) 782,76
Professors and teachers
Up to 10 years > 10 years
378,19
756,37
Builders and other persons related to construction industry businesses 474,93
Drivers, excavator drivers and other related professions, technicians, associates in media, machinery users (apart from the construction industry) assemblers of products, clerks, typists, cashiers, secretaries and technicians which do not fall in any other category 378,19
Shopkeepers, cleaners, messengers, guards and owners of dry cleaners 360,60
Farmers, stock breeders, aviarists, fishermen and other related professions, hawkers, postmen, refuse collectors, workers in mines & quarries, marine workers specializing in underwater constructions, installators of forklift equipment, street sweepers and people responsible for provision of services and salesmen 263,85
Butchers, bakers, confectioners and similar professions 290,24
Designers, users of computers, ship engineers, agents and musicians, magicians, persons that do not fall in any other professional category 386,98

*Note: The maximum amount of insurable earnings is €1.055 per week for all the above categories.

FCI Services Ltd is at your disposal should you require any further information or clarifications.

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