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Contributions and benefits are proportionate and calculated as a percentage of
the insured person’s income from employment. A main feature is the provision
for the regular revaluation of insurable earnings and the adjustment of benefits
in line with movements in salaries, wages and the consumer prices index.
The Social Insurance Scheme provides compulsory cover for every person who is
gainfully occupied in Cyprus. Insured persons are placed in three
categories:
- employed persons
- self-employed persons
- voluntary contributors
Employed
The contribution in the case of an employed person is calculated on the basis
of the wage or salary up to a certain ceiling. The contribution is shared
between the employer, the employed person and the State at the rates,
respectively, of 6.3%, 6.3% and 4%.
Self-employed
The contribution in the case of a self-employed person is calculated on the
basis of income levels which are fixed according to occupation and the place of
the employment.
Voluntary
The contribution rate for voluntary contributors within Cyprus is 13.5% of
earnings. The insured person pays 10% of the contribution and the State pays
3.5%. The contribution rate for voluntary contributors employed by Cypriot
employers abroad is 16.6%, of which the insured person pays 12.6% and the State
pays 4%.
The Scheme
The Scheme provides cash benefits for marriage, maternity, sickness,
unemployment, widowhood, invalidity, orphans, old age, in respect of a missing
person spouse, funerals, employment injuries and occupational diseases. It also
provides free medical treatment for persons with entitlement to an invalidity
pension and for insured persons who have suffered bodily harm because of an
employment injury or occupational disease.
Employed persons have entitlement to all the above-mentioned benefits.
Self-employed persons are not entitled to unemployment benefit and employment
injury benefits.
Voluntary contributors are entitled only to the marriage, maternity,
widowhood, old age, missing person, orphan and funeral benefits. Voluntary
contributors working abroad for Cypriot employers are entitled to all the
benefits to which employed persons are entitled other than employment injury
benefits.
Text last edited on: 12/2007
Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.
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