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Introduction of National Healthcare System in Cyprus
The General Healthcare System (GHS) Law came into force as from 1 March 2019.
As from the above date, employers are required to contribute 1.85% on the gross emoluments of employees, who are also required to contribute 1.70% on their emoluments and other income (e.g. rent, dividends, interest, etc.). The state is also required to contribute at 1.65% on the gross emoluments. As from 1 March 2020, the relevant contribution will increase to 2.90% for employers, 2.65% for employees and 4.70% for the state.
Pensioners, self-employed individuals, people with other income (such as income from office or position) are also required to contribute to the GHS, as long as they are residents of Cyprus irrespective of whether they are domiciled or not. The rate will be the same as for employees, except for self-employed persons who will contribute at 2.55%, to be increased to 4% as from 1 March 2020.
For the purposes of calculating the contributions, gross emoluments and other income (i.e. total earnings) are limited to €180,000 per annum.