Payroll Compliance Updates- Cyprus
A. Update

As a result of the Covid-19 pandemic, the Cyprus Government decided on March 15, 2020 to apply the reduced GHS contributions for the months of April and May 2020.

However, following the vote by the House of Representatives on March 27, 2020 of the Financial Support Program in response to the financial impact of the Coronation, it has been decided not to pay the increased contribution to the GSEY for a period of three months i.e., April to June 2020.

Please find the below table which specifies the period of application of the relevant contribution rates:

Contributor’s Category Up to February 29, 2020 For March 2020 April 01 – June 30, 2020 July 01, 2020 onwards
% % % %
Employees 1.70 2.65 1.70 2.65
Employees 1.85 2.90 1.85 2.90
B. Statutory Compliance Release Date: March 30, 2020
C. Effective Date: April 01, 2020 till June 30, 2020
 
A. Update

Parents working in the private sector will be granted “Special Leave” to remain at home to care for children up to 15 years of age. Special Leave can last up to four weeks for a salary of up to €2,500:

  • 60% of the salary will be paid for the first €1,000 of the parent’s salary, and
  • For the next € 1,000 of the salary, a 40% allowance will be paid.

Special Leave is granted to one of the two parents, not both. For single parent families, the rate of payment of the allowance is set at 70% and 50%, respectively. This Leave type is applicable only for April 2020 and does not impact our existing customers.

B. Statutory Compliance Release Date: March 16, 2020
C. Effective Date: April 01, 2020
 
A. Update

Basic Insurable Earnings considered for contribution to the following have been increased:

  • a) Social Insurance Fund;
  • b) Redundancy Fund;
  • c) Industrial Training Fund; and
  • d) Holiday Fund.

Basic Insurable Earnings Limit has been increased as under:

  • a) Monthly: from £ 4,554 to £ 4,572
  • b) Yearly: from £ 54,648 to £ 54,864
B. Statutory Compliance Release Date: January 02, 2020
C. Effective Date: January 01, 2020
 

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