Social Insurance Services in Cyprus

Share | Print | +

Delicious

Digg

Facebook

Google

Propeller

reddit

StumbleUpon

Twitter

Yahoo!

Social Insurance Services in Cyprus

The Social Insurance Scheme under the Ministry of Labour and Social Insurance (MLSI) provides monetary benefits for retirement, illness, disability, old age, marriage, maternity, orphanhood, unemployment, widowhood, death and employment injury.

Cyprus citizens and anyone legally employed in Cyprus are eligible for social insurance. EU citizens who are pensioners/retirees are also eligible. Those who want to continue coverage after a period of mandatory contributions (Voluntary Contributors) may opt to do so; all others must obtain private pensions and insurance.

Exemptions:

• Self-employed people are not eligible for unemployment or employment injury coverage
• Other voluntary contributors are only entitled to marriage, maternity and funeral grants as well as old-age and survivor benefits

The Cypriot social security system provides benefits and pensions. It is financed by employee, employer and state contributions. Under the social security system, recipients are entitled to free or subsidised health and dental care.

Social insurance payments are made to the District Offices of the Department of Social Insurance.

• For addresses and contact information for Ministry of Labour and Social Insurance district offices: Click here

EU Citizens

EU retirees are eligible for medical treatment at no cost. EU citizens from other countries who contributed to another EU country's social security scheme for at least two years are eligible for coverage in Cyprus. Those receiving an invalidity pension or those injured on the job are eligible for free medical treatment.

• For more information from the Department of Social Insurance website: Click here

Benefits Issued by Social Insurance Services

Family-related benefits

• Child Benefit: for families with children under a certain age living in the house
• Mother's Allowance: for mothers of more than four children who are no longer eligible for the Child Benefit
• Car Purchase Benefit: a one-time grant for large families who receive the Child Benefit for at least four children

Disability

• Special Grant for the Blind: available to those with impaired vision
• Car Purchase Benefit for the Disabled: financial assistance to assist with the purchase of a vehicle for the disabled
• Travel Allowance for the Disabled: available to the blind and those with mobility disabilities

Education

• Higher Education Grant: assistance for families with a child seeking higher education.

Housing

• Special Grant for Housing: for those purchasing or building a new home

The System

To register for inclusion in the Social Insurance Scheme, all applicants should apply at their district office of the Ministry of Labour and Social Insurance.

Note: application forms may only be available in the Greek language.

• For addresses and contact information for Ministry of Labour and Social Insurance district offices: Click here

Employed workers

Contributions are 16.6 percent of gross earnings; employees and employers both pay 6.3 percent, while the Republic pays the remaining 4 percent. Contributions are calculated up to a certain maximum on earnings; no contributions are calculated on any earnings over a fixed amount. (January 2008: €3,671.78)

• All employed person, except for unpaid apprentices and prisoners, who earn over a set amount must make contributions
• Those working for more than one employer in the same contribution period (week or month), must make contributions with each employer up to the ceiling of insurable earnings - the employee's contributions above the maximum are refunded, though employers do not receive any refunds

Self-employed workers

The self-employed contribute 11.6 percent of income, while the government contributes 4 percent. The self-employed are organised by occupational category and each category has a different required minimum income prescribed, with insurance contributions based on this figure. Those earning less than the minimum prescribed income, may opt to pay the 11.6 percent on the lesser salary.

Voluntary contributors contribute 10 percent on fixed earnings. The government contributes 3.5 percent.

Anyone working as an employed person and as a self-employed person in the same contribution week must pay contributions for both employments. At the end of the contribution year, money is refunded to the insured person for payments in excess of the ceiling of insurable earnings.

Anyone working as a voluntary contributor and a required contributor (for instance, a person who is self-employed and also works for a Cypriot employer overseas) may pay contributions voluntarily, if earnings are below the level on which they have chosen to pay contributions on voluntarily.

Pensioners

Those over the age of 65 are no longer required to make contributions to the social insurance system, unless they have not fulfilled the requirements for an old-age pension. In this case, the person must continue to make contributions until the requirements are met or the person turns 68 years old.

Payment of Contributions

Employers must pay their contributions (including the employee's share) monthly and within a month of the applicable contribution period.

Self-employed people pay contributions quarterly in arrears; within one month and ten days from the end of each quarter. It is possible to pay monthly if so desired.

Voluntary contributors must pay monthly or quarterly in arrears. If a voluntary contributor does not make full the contribution within one year of the end of the contribution year, voluntary insurance is no longer valid for that year.

Summary of Benefits

• Maternity Grant: a cash payment for eligible women who have given birth.
• Maternity Benefit: 16 weeks of payments for pregnant woman, beginning between the sixth and second week before confinement. Adoptive mothers of children (if the child is adopted when under 12 years of age) are also eligible.
• Illness Benefit: payable to employed and self-employed persons between 16 and 63 years old who are unable to work. Recipients who, at age 63, do not satisfy the contribution requirements to receive an old age pension, may continue to receive the illness benefit until they satisfy the contribution conditions or until they reach 65 years of age but no later. The illness benefit payments cannot exceed 156 days for each period of interruption of employment.
• Funeral Grant: a cash payment to eligible survivors in the event of the death of the recipient of a disability, old age or widow's pension; survivor's of an individual killed in an industrial accident or due to work-related disease; orphans.

Application for Benefits

Application for benefits should be made to the applicant's regional Social Insurance Service office.

• For contact information for regional Social Insurance Service offices: Click here
• Application forms for benefits can be downloaded (in PDF), but are only available in Greek. For application forms: Click here

Related Information

• Cyprus Ministry of Health
• See AngloINFO INFOrmation Page on European Health Insurance Card
• See INFOrmation Page on European Health Insurance Card