Guide
Cyprus social insurance contributions 2026: rates and the earnings cap
Updated
Social insurance is the largest deduction from a Cyprus payslip below the higher tax bands, and unlike income tax it stops at a published earnings ceiling.
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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 rates
Contributions to the Social Insurance Fund total 22.8% of insurable earnings. The employer, the employee and the state pay 8.8%, 8.8% and 5.2% (Business in Cyprus, Republic of Cyprus). Only the employee's 8.8% appears as a payslip deduction.
The employer also pays into three further funds on the employee's behalf (Social Insurance Services, Contributions). They are 1.2% to the Redundancy Fund, 0.5% to the Human Resources Development Fund and 2% to the Social Cohesion Fund. None of the three is deducted from the employee.
The earnings ceiling for 2026
Earnings counted for the Social Insurance, Annual Holidays, Redundancy and Human Resources Development Funds are capped at the maximum insurable earnings figure the Social Insurance Services publish each year. The Social Cohesion Fund is calculated on total earnings with no maximum.
| Contribution year | Weekly | Monthly | Yearly, monthly-paid |
|---|---|---|---|
| 2024 | €1,209 | €5,239 | €62,868 |
| 2025 | €1,281 | €5,551 | €66,612 |
| 2026 | €1,325 | €5,742 | €68,904 |
The 2026 amounts apply until the end of 2026 (Social Insurance Services, Basic Insurable Earnings 1981-2026). Employees paid weekly have a slightly different annual figure, €68,900 for 2026, because the year contains 52 weekly payments rather than 12 monthly ones.
What the cap means in practice
At 8.8% of €68,904, employee social insurance tops out at about €6,064 a year in 2026. Everything earned above the ceiling attracts income tax, GHS and the 2% social cohesion contribution from the employer, but no further social insurance from either side.
Self-employed contributions run on a different basis and rate, and are not covered by this calculator.