Guide
GESY contributions in Cyprus 2026: GHS rates for employees and employers
Updated
GESY, the General Healthcare System, is funded by a contribution on almost every kind of income. On a payslip it sits beside social insurance and is easily confused with it.
Talk to a specialist Gross, contributions, tax and net, itemised on 2026 rates.
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How this calculator works
- Income tax uses the bands in force from the 2026 tax year: 0% to €22,000, 20% on €22,001–€32,000, 25% on €32,001–€42,000, 30% on €42,001–€72,000 and 35% above €72,000. Until the 2025 tax year the threshold was €19,500 and the top rate started at €60,001 (Cyprus Tax Department, Tax Reform 2026).
- Employee social insurance is 8.8% of insurable earnings, matched by the employer, with the state adding 5.2% to make 22.8% in total (Business in Cyprus, Republic of Cyprus).
- Insurable earnings are capped. For 2026 the Social Insurance Services set maximum insurable earnings at €1,325 a week, €5,742 a month and €68,904 a year for monthly-paid employees. They apply until the end of 2026 (Social Insurance Services, Basic Insurable Earnings 1981-2026).
- The General Healthcare System contribution is 2.65% for employees and 2.90% for employers, on earnings up to €180,000 a year (Social Insurance Services, Contributions).
- Social insurance, GHS and provident fund contributions are deducted before income tax. The combined deduction for contributions to funds and schemes, GHS and insurance premiums is limited to one fifth of income. That is the limit applied in the Tax Department's own 2026 employer withholding tool (form T.D.59).
- The calculator assumes a single employment with no other income, no personal deductions for children, rent, mortgage interest or the green transition, and no exemption for first employment in Cyprus. Each of those reduces tax further and is claimed on form T.D.59 or the annual return.
- Employer cost excludes the Central Holiday Fund contribution, because employers who provide annual leave directly may obtain an exemption from it. If you do not hold an exemption, add it on top.
The contribution rates
- Employee
- 2.65% of gross earnings, deducted by the employer.
- Employer
- 2.90% of the employee's gross earnings, paid on top of salary.
- State
- 4.70%, paid into the Health Insurance Fund rather than deducted from anyone's pay.
The rates are published by the Social Insurance Services, which collects the contribution alongside social insurance (Social Insurance Services, Contributions).
The €180,000 ceiling
The GHS contribution is deducted on earnings up to €180,000 a year. The ceiling applies across all income, not per employer. The Tax Department's 2026 employer withholding form tells employers to stop withholding once the year's income from employment, benefits, pensions and the relevant special-rate income passes €180,000. At 2.65%, the employee's maximum GHS contribution is €4,770 a year.
GHS reduces your income tax
The employee GHS contribution is deducted from income before the tax bands are applied. It sits in the same capped bucket as contributions to pension, provident and social insurance funds and insurance premiums, limited to one fifth of income. On a salary with no provident fund, social insurance and GHS come to about 11.45% of gross, well inside that limit.
Where else GESY is charged
- Self-employed people pay a different GHS rate on their own income.
- Pensions, rents, interest and dividends also carry a GHS contribution, at rates set for each category.
- Rental income from 2026 is charged to income tax and GHS only, because the special defence contribution on rents was abolished from 1 January 2026.
This site calculates the employee contribution on employment income only. If you have rents, dividends or self-employment alongside a salary, your total GHS position is larger than the figure shown here.