Key Changes Starting January 2024
In line with the latest amendments to the Cyprus Social Insurance Law (59(I)/2010), significant changes are set to impact both employed and self-employed individuals from 1st January 2024. These changes are essential for employers, employees, and the self-employed to understand, as they will affect financial planning and payroll processes.
For Employed Persons
- Increased Contribution Rates: Both employers and employees will see their contribution rates to the Social Insurance Fund rise from 8.3% to 8.8% on insurable earnings.
For Self-Employed Persons
- Rate Hike: The contribution rate for self-employed individuals will increase from 15.6% to 16.6% on insurable earnings.
2024’s Social Insurance Contributions for Employees
The Department of Social Insurance Services annually determines the maximum earnings amount for calculating contributions to various funds.
Revised Maximum Insurable Earnings
- New Limits for 2024: The maximum insurable earnings have been revised upwards to €1,209 weekly, €5,239 monthly, and €62,868 annually.
Contribution Rates Overview
Here’s a quick summary of the new contribution rates effective from 2024:
| Fund | Employer Contribution | Employee Contribution |
|---|---|---|
| Social Insurance | 8.8% | 8.8% |
| Redundancy | 1.2% | – |
| Training and Development | 0.5% | – |
| Social Cohesion | 2.0% | – |
| Total | 12.5% | 8.8% |
Special Note on Social Cohesion Fund
- Contributions to the Social Cohesion Fund are calculated based on actual earnings without considering the maximum insurable earnings mentioned above.
Implications for Self-Employed Individuals in 2024
- Increased Contribution Rate: Self-employed persons will face a 16.6% contribution rate on insurable earnings for 2024.
Minimum Insurable Earnings
- Occupational Categories: The Department of Social Insurance Services provides a detailed table summarizing the minimum insurable earnings for self-employed individuals, categorized by occupation.
Contribution Amounts for 2024
- Quarterly Contributions: A table detailing the contributions due each quarter, based on the minimum weekly insurable earnings for self-employed persons, is available from the Department of Social Insurance Services.
By staying ahead of these changes, you can ensure compliance and correct financial planning. For more information, contact Charles Savva at [email protected]m or [email protected].
