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.

The rates

Contributions to the Social Insurance Fund total 22.8% of insurable earnings, split between the employer, the employee and the state at 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: 1.2% to the Redundancy Fund, 0.5% to the Human Resources Development Fund and 2% to the Social Cohesion Fund (Social Insurance Services, Contributions). 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.

Maximum insurable earnings, Social Insurance Services
Contribution yearWeeklyMonthlyYearly, 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.

Questions, answered directly

How much social insurance do employees pay in Cyprus?

8.8% of insurable earnings, matched by the employer, with the state contributing 5.2% to make 22.8% in total. The employee's share is capped because insurable earnings are capped at €68,904 a year for monthly-paid employees in 2026.

What are the maximum insurable earnings in Cyprus for 2026?

€1,325 a week, €5,742 a month and €68,904 a year for monthly-paid employees, as published by the Social Insurance Services. The amounts apply until the end of 2026.

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Gross, contributions, tax and net, itemised on 2026 rates.

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