MT Audit would like to inform its clients and subscribers that the Social Insurance and General Healthcare System (GHS) contributions for the year 2021 will remain the same as in 2020.
I. Social Insurance
Both employer and employee Social Insurance contributions will remain at 8,3%. The rate will increase in 2024 to 8,8% and thereafter will increase by 0,5% every five years, until it reaches 10,3%, as from 1 January 2039.
The rate for self-employed persons remains at 15,6%. The rate will increase to 16,6% in 2024 and thereafter will increase by 1% every five years, until it reaches 19,6%, as from 1 January 2039. The amount of contributions by self-employed persons is subject to a lower and a maximum limit, depending on the profession or trade of the self-employed person. These limits are set on an annual basis.
The maximum level of insurable emoluments for 2021 is €57,408 pa. For employees paid weekly, the maximum insurable amount is €1,104 and for employees paid monthly €4,784.
Please note that the Social Cohesion Fund contributions are calculated based on total emoluments and have no maximum level.
Below are the summarized details of Social Insurance contributions for 2021:
| Contributions | Employee | Employer | Self-Employed |
| Social Insurance Contributions | 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% |
II. General Healthcare System (GHS)
The GHS contributions, in effect as from 1 March 2019, are payable by individuals, employers and the government, and are capped at annual income of €180,000.
Please refer to the table below summarizing the relevant GHS contributions:
| Ref | Category | Sources of Income | 1/1/2021 |
| (i) | Employees | Emoluments | 2,65% |
| (ii) | Employers | Employees’ emoluments | 2,90% |
| (iii) | Self-Employed | Own Income | 4,00% |
| (iv) | Pensioners | Pension | 2,65% |
| (v) | Persons holding an office | Officers’ Remuneration | 2,65% |
| (vi) | Republic of Cyprus or Natural/ Legal person responsible for the remuneration of persons holding an office | Officers’ Remuneration | 2,90% |
| (vii) | Persons earning rental, interest, dividend and other income | Rent, interest and dividend | 2,65% |
| (viii) | Republic’s Consolidated Fund | Emoluments/pensions of persons in (i), (iii), (iv) and (v) | 4,70% |
Note: non-domiciled individuals are not exempt from GHS contributions. Non-Cyprus tax residents are subject to GHS contributions only in case they receive rental income from properties located in Cyprus, or if they get profits or other benefits from any office or employment exercised in the Republic.
MT Audit remains at your disposal for any further clarifications or information.
