Cyprus’ Department of Social Insurance Services each year determines 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 27 November 2023, by the Social Insurance Services Department,1 the maximum amount of insurable earnings for 2024 has been revised upwards from the previous year to €1,209 per week, €5,239 per month, and €62,868 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 2024:
Social insurance contribution rates for 2024 | |||
Fund | Employer | Employee |
|
Social Insurance | 8.8% | 8.8% | C |
Redundancy | 1.2% | - | C |
Training and Development | 0.5% | - | C |
Social Cohesion | 2.0% | - | N.C. |
Total | 12.5% | 8.8% |
|
Source: KPMG, Cyprus
C=Cap at €5,239/ month; N.C.=No Cap