In our continued exploration of the impending changes to the Cyprus Social Insurance Fund, there’s more than meets the eye since our last update on October 5, 2023. Brace yourselves for the fourth surge in contributions, as we delve into the intricacies that go beyond the surface.
Contrary to the initial expectations outlined in the Social Insurance Law of 2010 (59(I)/2010), the actual increase in contributions revealed by the Ministry of Labor & Social Insurance diverges from the projections. An Acturial Study has unearthed a surprising revelation – the anticipated need for a contribution hike is just 0.1% less than initially budgeted.
Effective January 1, 2024, both employer and employee contributions on each side of the spectrum will witness a tweak.
Instead of the initially proposed 0.6% surge, it will move by 0.5%. The shift from the current 8.3% to 8.8% on both fronts (as opposed to 8.9%) on the employees’ insurable earnings might seem modest, but the implications ripple through the intricate web of finances.
To put it bluntly, these seemingly incremental changes translate to insignificant reductions in employees’ wages. But let’s not kid ourselves. The real shockwaves resonate in the broader business landscape, adding fuel to the fire of escalating inflationary pressures.
In a nutshell, the adjustments slightly affect wages and amplify the financial strain on businesses already grappling with the relentless surge in inflation.
Should you need further information regarding Cyprus Social Insurance updates, do not hesitate to contact Eurofast office in Nicosia at nicosia@eurofast.eu
Yianna Papademetriou
Payroll Specialist
Eurofast Nicosia
nicosia@eurofast.eu