The Department of Social Insurance Services 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.
Based on an announcement issued on 19/12/2022 by the Social Insurance Services Department, the maximum amount of insurable earnings for 2023 has been revised upwards from the previous year to €1.155 per week, €5.005 per month and €60.060 per annum.
It is noted that contributions to the Social Cohesion Fund are calculated on actual earnings, not subject to the above caps.
Please refer to the below summary table for the applicable contribution rates which are payable by employers and employees for 2023:
Social insurance contribution rates for 2023 |
|||
|
|
||
Fund |
Employer |
Employee |
|
Social Insurance |
8,3% |
8,3% |
C |
Redundancy |
1,2% |
- |
C |
Training and Development |
0,5% |
- |
C |
Social Cohesion |
2,0% |
- |
N.C |
Total |
12% |
8,3% |
|
C=Cap at EUR 5.005 /month., N.C= No Cap
Social insurance contributions applicable to self-employed persons
The contribution of self-employed persons for 2023 will remain unchanged at 15.6% on insurable earnings.
Minimum insurable earnings by occupational category
The table which summarises the minimum applicable insurable earnings of self-employed persons for 2023 by occupational category, as issued by the Department of Social Insurance Services, can be accessed here.
Amounts of social insurance contributions due for 2023
The table issued by the Department of Social Insurance Services which summarises the amounts of contributions due for each quarter of 2023, based on the minimum weekly insurable earnings of self-employed persons, according to the table referenced in the above immediate section, can be accessed here.
How can KPMG assist?
KPMG Cyprus has a specialised team that can provide custom tailored assistance to employers and self-employed individuals with regards to their Cyprus social insurance obligations.
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