CYPRUS PAYROLL SYSTEM
Cyprus has an attractive payroll system with Euro 19,500 tax free income, the largest in the EU and low Social Insurance Contribution cost for the employer of only 12% additional cost to the company*. Together with the “First Employment in the Republic” rules Cyprus becomes very attractive for its low payroll cost.
During 2021 the National Health Care System (GESY or NHS) for employers is 2.90% and for employees 2.65%.
Together with the NHS the total employment cost becomes 14.90%
Employment Tax Thresholds
* Social Insurance Contributions Cost for Cyprus companies comprises of the following:
- Employees Contribution at 8.3%,
- Employers Contribution at 8.3%,
- Social Cohesion Fund at 2%,
- Redundancy Fund at 1.2%, and
- Industrial Training at 0.5%.
- NHS for employees is 2.65% & employers contribution 2.90%
Holiday fund of 8% is optional usually used for seasonal workers.
Use Cyprus Payroll Calculators:
Other Useful Calculators:
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FAQS - FREQUENTLY ASKED QUESTIONS