Cyprus Social Insurance System and Contributions
In Cyprus, social insurance is based on your earnings. It is compulsory for everyone who works, whether you are an employee or self-employed. This page explains how the system is paid for, the contribution rates for employees, employers, self-employed people and people who pay in voluntarily, how your social insurance rights move with you inside the EU, and the benefits you can receive.
How the Cyprus Social Insurance System Works
Voluntary insurance is usually only possible after you have paid compulsory contributions for a set period. It applies if you want to insure yourself, or if you work abroad for a Cypriot employer.
The system is paid for by the insured person, the employer and the state. For a standard employee, the contribution rate is now 21.5 percent of gross monthly income. The employer pays 8.8 percent, the employee pays 8.8 percent, and the state pays 4.9 percent (as of January 2026, subject to change).
For self-employed people (Non-Dom), the rate is 21.8 percent of expected gross income. The self-employed person pays 16.6 percent and the state pays 5.2 percent. People insured voluntarily pay 18.4 percent, made up of 14 percent from the insured person and 4.4 percent from the state. People insured voluntarily outside Cyprus pay 20.5 percent, made up of 15.6 percent from the insured person and 4.9 percent from the state (as of January 2026, subject to change).
Self-employed people also pay 4.0 percent to the state healthcare system, GESY / GHS Cyprus.
Transfer of Your Social Insurance Benefits
EU Regulation 1408/71 has applied in Cyprus since 1 May 2004. It links the social insurance systems of the EU member states, the European Economic Area and Switzerland.
The regulation protects your social insurance rights and lets you take them with you when you move within the European Union. It means:
- No one is treated differently because of their nationality.
- Employers follow one single set of rules.
- The benefit rights you have built up are protected and can usually move with you within the EU.
Cyprus has also signed mutual agreements with four more countries outside the EU (Canada, Quebec, Egypt and Australia). These agreements protect your social insurance rights in both places.
Benefits of the Cyprus Social Insurance System
The Cyprus social insurance system provides a range of benefits.
- Healthcare: free medical care and treatment after work accidents and work-related illnesses, and for pensioners who need care. GESY / GHS Cyprus provides extra services where this applies.
- Maternity grant: for mothers who are taxed in their own name or through their spouse. It covers employed, self-employed and voluntarily insured people. The maternity grant is a one-off payment of EUR 546.
- Funeral grant: for employed, self-employed and voluntarily insured people, and pensioners. The funeral grant is a one-off payment of EUR 509.94.
- Maternity allowance: for employees who work abroad for a Cypriot employer or a Cypriot company, and for employees and self-employed people in Cyprus. It is paid for 18 weeks.
- Sickness benefit: for employees who work abroad for a Cypriot employer or a Cypriot company, and for employees and self-employed people in Cyprus. It is paid for up to 156 days per period of absence from work.
- Unemployment benefit: for employees who work abroad for a Cypriot employer or a Cypriot company, and for employees and self-employed people in Cyprus. It is paid for up to 156 days during periods without work.
- Invalidity pension: for employees who work abroad for a Cypriot employer or a Cypriot company, and for employees and self-employed people in Cyprus. It is paid to people who cannot work for 156 days and are expected to stay permanently unable to work.
- Old-age pension: for employed, self-employed and voluntarily insured people. You usually receive an old-age pension from the age of 65. Under certain conditions, you may receive it from the age of 63.
- Widow's or widower's pension: for employed, self-employed and voluntarily insured people. It is paid to women who lived with their husband until his death or were supported by him. It is also paid to men who cannot support themselves or were supported permanently by their wife until her death.
- Orphan's allowance: for employed, self-employed and voluntarily insured people.
If the orphan is under 15, or is unable to care for themselves at any age, the allowance is paid to the person who supports them. In all other cases, it is paid directly to the orphan. It ends when the orphan reaches adulthood. Where the orphan is unable to care for themselves, it is paid for life.
Work Accident Benefits
- Sickness benefit: for employed people. It is paid from the fourth day you are unable to work. If a work accident or a work-related illness caused this, it is paid for up to 12 months.
- Disability allowance: for employed people. The amount depends on the degree of disability. People who have a disability of at least 20 percent from a work accident or a work-related illness receive a disability pension. It is paid until they recover, or for life. Disability supplements are paid to people whose degree of disability is between 10 percent and 19 percent.
- Death benefit: for employed people. It is paid to the family members who depended on an employee who died from a work accident or a work-related illness. The death benefit is made up of a widow's pension, an orphan's allowance and a parents' benefit. The amount payable is EUR 388.
As of January 2026, subject to change.
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