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Contributions and benefits are proportionate, calculated as a percentage of the earnings of those insured.  The main feature is the provision for regularly increasing the insurance benefits and readjusting them in line with the salaries and wages and the cost of living.

The Social Insurance Scheme provides compulsory cover for all persons employed in Cyprus.  Those insured under the scheme are classified into three categories: salaried staff, self-employed and voluntary contributors.

For salaried staff contributions are calculated on their wages or salary up to a certain ceiling.  For employees contributions are 6.8% from the employer, 6.8% from the employee and 4.3% from the State in proportion to the income.

For the self-employed contributions are calculated on their income, which is determined on the basis of their occupation and place of work. Self-employed persons pay contributions equal to 12.6% of salary and the State pays 4.3%.

The voluntary contribution for those within Cyprus is 14.8% of the earnings in respect of which they are insured, 11% being paid by the insured person and 3.8% by the State.

The scheme provides marriage benefits, maternity benefits, sickness benefits, unemployment benefits, survivor’s benefits, disability benefits, orphan benefits, old age benefits, single parent benefits, death benefits, occupational accident benefits and occupational illness benefits.  It also provides free medical care and drugs for those entitled to a disability pension and to persons who have suffered physical injury as the result of an occupational accident or occupational illness.  Salaried staff are entitled to all the above benefits, whereas the self-employed are not entitled to unemployment benefits for occupational accidents.  Voluntary contributors are entitled only to marriage benefits, child benefits, survivor’s benefits, old age benefits, single person benefits, orphan benefits and death benefits. Voluntary contributors who are employed by a Cypriot employer abroad are entitled to all the benefits to which salaried staff are entitled with the exception of benefits for occupational accidents. 

For further information contact the Social Insurance Services (Tel. +357 22 40 16 00 or through the website www.mlsi.gov.cy/sid).

Text last edited on: 07/2011