Two contributions come out of every Cyprus salary alongside income tax. Here are the 2026 rates and the caps that limit them.
See them on my salary →| Contribution | Rate | Annual cap |
|---|---|---|
| Social Insurance | 8.8% | €68,904 |
| GESY (GHS / ΓεΣΥ) | 2.65% | €180,000 |
Social Insurance is charged on your gross earnings up to the maximum insurable earnings ceiling of €68,904 for 2026 (up from €62,868 in 2025). Earnings above the ceiling are not subject to further Social Insurance. GESY is charged up to €180,000 of income.
Both contributions are tax-deductible. Income tax is calculated on your gross minus Social Insurance and GESY, so paying them lowers your taxable income. Together they come to 11.45% of gross (below the ceilings), which is comfortably within the deduction limits.
Employers pay their own share on top of your salary — Social Insurance of 8.8%, GESY of 2.90%, plus contributions to other state funds (Redundancy, Training, Social Cohesion) totalling roughly 4.7%. This is why the true cost of employing someone is noticeably higher than their gross salary. The calculator can show the full employer cost.
Self-employed people pay Social Insurance at 16.6% (on notional income bands set by the state) and GESY at 4.00%. See our self-employed guide for detail.
Social Insurance funds state benefits such as pensions, unemployment, sickness and maternity. GESY (the General Healthcare System) funds Cyprus's national health service, giving contributors access to doctors, specialists, hospitals and prescriptions. Both are mandatory for employees.
Employees pay 8.8% Social Insurance and 2.65% GESY of gross earnings. Social Insurance is charged only up to an annual insurable-earnings cap, so very high earners stop paying the 8.8% above that ceiling; GESY applies more broadly, also up to its own cap. Your employer pays its own matching Social Insurance and GESY on top of your salary — that employer cost doesn't come out of your pay, but it's part of what your employment costs the business.
Here's a detail many people miss: Social Insurance and GESY are deducted before income tax is worked out. They reduce your taxable income, so they don't just cost you the contribution — they also slightly lower the income tax you pay. The salary calculator applies them in the correct order automatically.
If you work for yourself there's no employer to share the cost, so the rates are higher — 16.6% Social Insurance and 4% GESY, charged on notional income bands. See self-employed tax in Cyprus for the full picture. For the official figures, check the Social Insurance Services.