Εach employed person in the Republic of Cyprus, either as an employed person or as a self employed person, is compulsorily insured under the Social Insurance Scheme. Moreover, every employer has to register with the Employer’s Register of the Social Insurance Services.
Self-employed persons/ Employees
The application form for employee/self-employed registration (see "Related Documents") can be submitted either electronically, or through the PSC Cyprus or by hand/mail to a District Social Insurance Office or Citizens Service Centre.
The application form should be accompanied by any of the following certificates:
- copy of identity card or Copy of passport or Copy of the alien registration certificate issued by the Civil Registry and Migration Department of Cyprus.
Usually the social insurance number is given within 1-2 weeks from the date of the submission of the application.
In case of employed persons, the contribution is 21,5% on their insurable earnings and it is divided to contributions paid by the employer, the employee and the State in the proportion of 8,3%, 8,3% and 4,9%, respectively.
Insurable earnings is the amount of earnings on which the insured person pays contributions. The amount of insurable earnings is determined each year and is increased by Order of the Council of Ministers. In case where earnings are higher than the maximum amount of insurable earnings, contributions are paid only up to the defined maximum amount of insurable earnings.
In case of self employed persons, the contribution is 20,5% on the minimum amount of insurable earnings (notional income) according to their specific occupational category. Out of 20,5%, 15,6% is paid by the self employed himself and 4,9% by the State. The insurable earnings of self employed persons are fixed by the regulations according to the specific occupational category, having the right to opt for a higher income up to the maximum insurable earnings. If a self employed person proves that his actual income is lower than the minimum insurable income of his occupational category after submitting a relevant application, he may be allowed to pay contributions on his actual income.
The application form for the registration of employers (see "Related Documents") can be submitted either electronically, or through the PSC Cyprus or by hand/mail to a District Social Insurance Office or Citizens Service Centre.
The application form should be accompanied by the following certificates:
- copy of identity card or passport or aliens registration certificate of employer;
- copy of the certificate of incorporation, copy of certificate of directors and secretary (in case of a limited company);
- copy of the certificate of partners, copy of certificate of partnership registration (in case of a partnership);
- declaration of Employers Registration form for the recruitment of employees.
Usually the Employer´s Registration Number is given within 1-2 weeks from the date of the submission of the application.
The employer before the commencement of employment of an employee is liable to obtain and submit to each employee the form “Declaration of Commencement of Employment”. One copy of the Declaration is kept by the employer and is available for inspection, the other is sent to the Social Insurance Services within a specified period and th third is given to the employee.
The employer is liable to pay contributions to the various Funds (Social Insurance Annual Holidays with Pay, Redundancy, Human Resource Development and Social Cohesion) for each of his employees, whose remuneration is not less than €2 per week, if the employee is paid every week or less than €7 per month, if he is a monthly paid employee. The employer is not obliged to pay contributions to the Central Holiday Fund if he obtains exemption from the obligation to pay contributions to the Central Holiday Fund.
The employer is liable to pay contributions to the previously mentioned Funds by the end of the calendar month which follows the month for which contributions are due.