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- May 26, 2023
- Posted by: admin
- Category: Accounting & Finance, Taxation
Social Insurance Contributions for 2023
The Social Insurance Contributions for 2023 are summarized below:
| Contributions | Employee | Employer | Self-Employed |
| Social Insurance | 8,30% | 8,30% | 14,60% |
| Social Cohesion Fund | 2,00% | ||
| Redundancy Fund | 1,20% | ||
| Industrial Training Fund | 0,50% | ||
| Holiday Fund (if not exempt) | 8,00% | ||
| TOTAL | 8.30% | 20.00% | 1460% |
The Social Insurance Office lays down yearly the maximum amount of earnings used to calculate the contributions to the Social Insurance, Redundancy, Training, and Development Funds.
The maximum amount of insurable earnings for 2023 has been revised upwards from the previous year to €1.155 per week, €5.005 per month, and €60.060 per annum.
Contributions to the Social Cohesion Fund are calculated on actual earnings, not subject to the above caps.
General Health System Contributions for 2023
Αs per the General Healthcare System Law of 2001 (GHS), as amended in 2017, patients are having the option to select a healthcare provider from the private as well as the public healthcare sector.
Individuals, employers, and the government contribute to the GHS set down below.
The contributions will be deducted from the total earnings of the individuals (including dividends, interest, and rental income) up to a maximum of €180.000.
Below is set the table summarizing the relevant contributions:
| Ref | Category | Sources of Income | Rate |
| (i) | Employees | Emoluments | 2.65% |
| (ii) | Employers | Employees’ emoluments | 2.90% |
| (iii) | Self-Employed | Own Income | 4.00% |
| (iv) | Pensioners | Pension | 2.65% |
| (v) | Person’s holding an office * | Officers’ Remuneration | 2.65% |
| (vi) | Republic of Cyprus or Natural/Legal person responsible for the remuneration of persons holding an office officers | Officers’ Remuneration | 2.90% |
| (vii) | Person’s earning rental, interest, dividend and other incompetent | Rent, interest and dividend | 2.65% |
| (viii) | Republic’s Consolidated Fund | Emoluments/pensions of persons in (i), (iii), (iv) and (v) | 4.70% |
It is noted that for GHS contributions purposes, the individual’s domicile is irrelevant.
* This relates to holders of public or local authority offices or other offices, the income out of which does not come within the scope of (i) or (iii), or (iv) of (vii).
The contribution of self-employed persons will remain unchanged at 15.6% on income which is determined according to the following table:
| Professional Categories |
Coefficient of determination of minimum amount of insurable earnings * |
Minimum Weekly Amount of Insurable Earnings (€)** |
1. Doctors, pharmacists, specialists in health matters (qualified), accountants, economists, lawyers, and other professionals
|
2.20 4.45 |
423.43 856.49 |
2. Accountants, Economists, Lawyers, and other Professionals –
|
2.20 4.45 |
423.43 856.49 |
| 3. Directors (Entrepreneurs), Estate Agents, Wholesalers | 4.45 | 856.49 |
4. Teaching Professionals (University and Higher, Secondary, primary and Pre-primary, Special Education, Teaching Assistants) –
|
2.15 4.30 |
413.81 827.62 |
| 5. Builders and other professions related to the construction industry | 2.70 | 519.67 |
| 6. Farmers, Dairy and Livestock Producers, Poultry Producers, Fishermen and related workers | 1.50 | 288.71 |
| 7. Drivers, Excavator Operators and related workers | 2.15 | 413.81 |
| 8. Technicians, Telecommunication Cooperators, Machine Operators not related to Construction Industry and Metal-, Rubber-, Plastic-, Wood- and similar product assemblers | 2.15 | 413.81 |
| 9. Clerks, Typists, Cashiers, Secretaries | 2.15 | 413.81 |
| 10. Workers not classified in any other occupational category | 2.15 | 413.81 |
| 11. Shop owners/supervisors (Including kiosks, hairdressers, barbers, and beauticians) | 2.05 | 394.56 |
| 12. Butchers, Bakers, Pastry-cooks, Meat, Dairy-, Fruit, and tobacco products makers/preservers, and related professionals | 1.65 | 317.58 |
| 13. Street Vendors, Mail Carriers, Garbage Collectors, Mining / Stone labour, Ships’ Crews, Underwater Construction Specialists, Riggers and Cable Splicers and Sweepers, Services Supervisors and Salespersons | 1.50 | 288.71 |
| 14. Cleaners, Messengers, Porters, Cleaning Shop Owners | 2.05 | 394.56 |
| 15. Draughtspersons, Computer Equipment Operators, Ships’ Engineers, Agents and related professionals, Musicians, Magicians | 2.20 | 423.43 |
| 16. Persons not classified in any other occupational category | 2.20 | 423.43 |
Notes:
* Minimum amount of insurable earnings is equal to basic insurable earnings (€192,47) times the coefficient.
** The maximum weekly amount of insurable earnings is equal to €1.155.
F.C.I. LTD is at your disposal should you require any further information or clarifications.
Contact us: Tel: 22 673800 email: info@fci.com.cy