As the economy of Cyprus begins to emerge from its COVID-19 induced shutdown, the three-month suspension of increases in GHS contributions, introduced as a part of the governmental relief package, is now over.
Thus, the way is now open for increased contributions payable by employees, employers, retirees, rentiers, the self-employed and the state to the GHS fund, as stipulated by the relevant legislation. This means that for anyone with an income, the increase that will appear on their next payslip applies as of 1 July 2020.
Employees will from now on contribute 2.65% of their monthly income to GHS compared to 1.7% they contributed in the first phase of GHS implementation.
At the same time and as per the law:
– Employers will pay to the system an amount that equals 2.90% of each employee’s salary (compared to 2.65% they have been paying to date);
– The self-employed will contribute 4% (compared to 2.55% before);
– Retirees, rentiers and officials will pay 2.65% (compared to 1.7% before);
– The state’s contribution for each GHS beneficiary increases to 4.7% (compared to 1.65% before).
As always, M. Target professionals remain at your disposal should you require any further information or clarifications.