Social Insurance Contributions for 2025 in Cyprus
The Cyprus government has announced updates to the Social Insurance Contributions for 2025, including an increase in the maximum insurable amount. This update affects both employers and employees, as well as self-employed individuals. Below, we provide a comprehensive summary of the changes to help you understand their impact.
New Maximum Insurable Amount for 2025
The maximum insurable amount for social insurance contributions in 2025 has been increased as follows:
- Annual maximum: €66,612 (up from €62,868 in 2024).
- Monthly maximum: €5,551 (up from €5,239).
- Weekly maximum: €1,281 (up from €1,209).
Summary of Social Insurance Contributions for 2025
| Contributions | Employee | Employer | Self-Employed |
|---|---|---|---|
| Social Insurance Contributions | 8.8% | 8.8% | 16.6% |
| Social Cohesion Fund | – | 2.0% | – |
| Redundancy Fund | – | 1.2% | – |
| Industrial Training Fund | – | 0.5% | – |
| Holiday Fund (if not exempt) | – | 8.0% | – |
Important Notes
- Social Cohesion Fund: This is calculated on total emoluments without a maximum cap.
- Holiday Fund: Contributions to the Holiday Fund are only applicable to employers who are not exempt.
- The increase in the maximum insurable amounts means that both employers and employees will see a slight adjustment in their contributions if their earnings exceed the updated thresholds.
How These Changes Affect You
- Employers: Ensure payroll systems are updated to reflect the new maximum insurable limits and contribution rates.
- Employees: If your earnings are above the new thresholds, your contribution amounts will increase slightly.
- Self-Employed Individuals: Review the updated maximum and contribution rates to adjust your financial planning accordingly.
For tailored guidance on how these changes may impact your business or personal finances, feel free to contact us at Evidentrust Financial Services Ltd. Our experts are here to help you navigate these updates seamlessly.
