Cyprus’s General Healthcare System (GHS), commonly known as GeSY, is a universal healthcare initiative designed to provide accessible, high-quality medical services to all eligible residents. Implemented in phases starting in 2019, GeSY aims to ensure comprehensive healthcare access with minimal out-of-pocket expenses for beneficiaries.
Employers and employees in Cyprus are required to contribute to the GHS based on gross earnings. As of March 1, 2020, the contribution rates are:
These contributions are deducted at the source by employers and must be remitted to the relevant authorities by the end of the following month.
Self-employed professionals have distinct contribution rates and responsibilities:
Self-employed individuals must register with the Social Insurance Services and are responsible for calculating and paying their contributions. Payments are due by the end of the following month for which they are due.
Individuals with additional income sources, such as rental income, dividends, or interest, are also subject to GHS contributions. The contribution rate for these income types is 2.65%. It’s important to note that the maximum annual income subject to GHS contributions is capped at €180,000.
Timely and accurate payment of GHS contributions is crucial. Late payments may incur penalties, including monthly fines of up to 3% on outstanding amounts, legal proceedings, and potential criminal charges for employers who fail to remit employee contributions.
Understanding and adhering to GHS contribution obligations is essential for businesses and freelancers operating in Cyprus. Ensuring compliance not only supports the sustainability of the healthcare system but also safeguards against legal and financial repercussions.
