Social Insurance Contributions – Updates Effective 1 January 2026
Social Insurance Contributions – Updates Effective 1 January 2026
As part of the annual adjustments to the Cyprus social insurance framework, the maximum insurable earnings threshold has been revised upward for 2026.
Revised Maximum Insurable Earnings
Effective from 1 January 2026, the maximum amount subject to social insurance contributions increases to:
-
€68,904 per annum (from €66,612)
-
€5,742 per month (from €5,551)
-
€1,325 per week (from €1,281)
Amounts exceeding the above limits are not subject to social insurance contributions, except where specifically noted below.
Contribution Rates for 2026
| Contribution Type | Employee | Employer | Self-Employed |
|---|---|---|---|
| Social Insurance | 8.8% | 8.8% | 16.6% |
| Social Cohesion Fund | – | 2.0% | – |
| Redundancy Fund | – | 1.2% | – |
| Industrial Training Fund | – | 0.5% | – |
| Holiday Fund (where applicable) | – | 8.0% | – |
Key Points to Note
-
The Social Cohesion Fund is calculated on total emoluments, with no maximum cap.
-
Employers should ensure payroll systems are updated to reflect the revised thresholds and rates as from January 2026.
-
The changes may have a direct cost impact on employment structures, especially for higher-paid employees.
Our view: Early payroll and cost modelling is advisable, particularly for groups with multiple employees near or above the insurable earnings ceiling.
Our team remains available to assist with payroll reviews, compliance checks, and impact assessments arising from the 2026 changes.
