Key Changes Starting January 2024
In line with the latest amendments to the Cyprus Social Insurance Law (59(I)/2010), significant changes are set to impact both employed and self-employed individuals from 1st January 2024. These changes are essential for employers, employees, and the self-employed to understand, as they will affect financial planning and payroll processes.
For Employed Persons
- Increased Contribution Rates: Both employers and employees will see their contribution rates to the Social Insurance Fund rise from 8.3% to 8.8% on insurable earnings.
For Self-Employed Persons
- Rate Hike: The contribution rate for self-employed individuals will increase from 15.6% to 16.6% on insurable earnings.
2024's Social Insurance Contributions for Employees
The Department of Social Insurance Services annually determines the maximum earnings amount for calculating contributions to various funds.
Revised Maximum Insurable Earnings
- New Limits for 2024: The maximum insurable earnings have been revised upwards to €1,209 weekly, €5,239 monthly, and €62,868 annually.
Contribution Rates Overview
Here's a quick summary of the new contribution rates effective from 2024:
|
Fund |
Employer Contribution |
Employee Contribution |
|
Social Insurance |
8.8% |
8.8% |
|
Redundancy |
1.2% |
- |
|
Training and Development |
0.5% |
- |
|
Social Cohesion |
2.0% |
- |
|
Total |
12.5% |
8.8% |
Special Note on Social Cohesion Fund
- Contributions to the Social Cohesion Fund are calculated based on actual earnings without considering the maximum insurable earnings mentioned above.
Implications for Self-Employed Individuals in 2024
- Increased Contribution Rate: Self-employed persons will face a 16.6% contribution rate on insurable earnings for 2024.
Minimum Insurable Earnings
- Occupational Categories: The Department of Social Insurance Services provides a detailed table summarizing the minimum insurable earnings for self-employed individuals, categorized by occupation.
Contribution Amounts for 2024
- Quarterly Contributions: A table detailing the contributions due each quarter, based on the minimum weekly insurable earnings for self-employed persons, is available from the Department of Social Insurance Services.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.