A major overhaul of the Cypriot public healthcare system will take effect on 1 June 2019. The new system is financed by contributions from employers, employees and government.

By: Natasa Aplikiotou

Firm: George Z. Georgiou & Associates LLC

Rollout of the new Cyprus Health System (GHS) will commence on 1 June 2019. However, the payment of the contributions to the health system has started as of 1 March 2019. The new system involves respective contributions for both employers and employees, the state, self-employed, pensioners, income-earners and government officials. Different contribution rates for employees and self-employed people are introduced. Employers contribute 1.85% of the employee’s earnings and employees contribute 1.70% while self-employed contribute 2,55%. These contribution rates are applicable for the period from 1 March 2019 to 28 February 2020. As of 1 March 2020, when the full implementation of the GHS will take place, the rates will increase.

The employer is responsible for paying both their own and their employees’ contributions through the Department of Social Insurance Services through payroll by means of deductions from salary. The GHS contributions are payable on all employees’ earnings (as defined in the Social Insurance Law) up to EUR 180,000. The insurable earnings limit for Social Insurance Fund contributions does not apply in this case.