The Cyprus Social Insurance Services (SIS) is the government body responsible for administering the national social insurance fund. Contributions are compulsory for all employed and self-employed individuals in Cyprus. As of 2025, the standard employee contribution rate is 8.8% of gross insurable earnings, and the employer contribution rate is 8.8%, with an additional employer contribution to the Redundancy Fund, the Human Resource Development Authority, and the Social Cohesion Fund bringing total employer social costs to approximately 11.5% above the employee's gross salary.
Insurable earnings are subject to an annual ceiling, which is revised periodically. Contributions fund a range of benefits including the old-age pension, invalidity pension, survivors' benefits, unemployment benefit, sickness benefit, maternity allowance, and work injury compensation. Employers are required to register each new employee with the SIS before or on the first day of employment and to file and pay contributions on a monthly basis.
For foreign nationals employed in Cyprus, social insurance obligations depend on the applicable EU coordination regulations or bilateral social security agreements. Employees on assignment from EU member states may remain insured in their home country under an A1 certificate, avoiding duplicate contributions.