The implementation of the national health insurance system, which started on 1 March 2019 initially covering only outpatient care, is expected to be fully completed by June 1, 2020.
From 1 March 2020, the contributions to cover both outpatient and inpatient care will be amended to 2.65% for employees and pensioners, 2.90% for employers, 4.70% for the government and 4% for the self-employed. The contributions will be deducted from the entire earnings of the employee up to an amount of €180,000.
Maximum Insurable Earnings
The maximum level of insurable emoluments for 2020 has changed to €54,864. For employees paid weekly, the maximum insurable amount is €1,055 and for employees paid monthly, it is €4,572. If the cumulative emoluments reach the maximum insurable amount, no social insurance contributions will be deducted from the 13th salary, except for the social cohesion and the GHS contribution.
Increase of Allowable Tax Deductions
On 19th of December 2019, an amendment of Article 14 of the Income Tax Law of 2002 was published in the Official Gazette of the Republic of Cyprus. The amendment increases the limit of allowances from 1/6th to 1/5th of an individual's taxable income. The change takes effect as of 1st of January 2019.
Our team in Cyprus is available to answer questions and provide clarifications related to the recent and upcoming changes in Cyprus and is at your disposal to offer compliant, accurate, and professional outsourced payroll services tailored to your specific needs.
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