Social Security - Old-Age Insurance

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.

• For more information contact the Social Insurance Services (Tel. +357 22 40 16 00 or via the website).

Text last edited on: 12/2007

Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.