As of 1st January 2024, the following changes regarding employment in the Republic of Cyprus:
Social insurance contribution and maximum amount of insurable earnings:
In accordance with the Cyprus Social Insurance Law of 59(I)/2010, as amended, the contribution rates to the Social Insurance Fund will increase as follows, effective 1st January 2024:
- In the case of employed persons, the contribution rates to the Social Insurance Fund by both the employer and the employee will increase from 8,3% to 8,8% on insurable earnings.
- In the case of self-employed persons, the contribution rate to the Social Insurance Fund will increase from 15,6% to 16,6% on insurable earnings.
Social insurance contributions applicable to employees effective 1st January 2024
The Department of Social Insurance Services lays down yearly the maximum amount of earnings used for the purpose of calculating the contributions to the Social Insurance, Redundancy, Training and Development Funds.
Based on an announcement issued on 29/11/2023 by the Social Insurance Services Department, the maximum amount of insurable earnings for 2024 has been revised upwards from the previous year to €1.209 per week, €5.239 per month and €62.868 per annum.
Changes to the National Minimum Wage:
The National Minimum Wage has increased, effective 1st January 2024 as follows:
- Upon recruitment from €885 to €900 (Gross Salary) for full time and
- After completing six months of continuous employment with the same employer from €940 to €1,000 (Gross Salary).
It is noted that, employees of the Hotel Industry, domestic workers, workers employed in the agricultural and livestock sector and shipping workers are excluded from the National Minimum Wage provisions.
In addition, it is noted that the full-time working hours of employees in each economic activity are those that applied before this amendment, based on legislation, decree, contract, custom or practice, i.e. the working hours applied to each business separately.
Our team is at your disposal for further information or support in the application of these changes to your business.