Apply for a Social Insurance Number

It is important for all EU citizens to know that it is compulsory for all employees in Cyprus to contribute to the Social Insurance Scheme.

In Cyprus there is a general earnings related Social Insurance Scheme, which covers compulsorily, every person gainfully occupied in Cyprus either as employed or self employed person. Employed persons include civil servants and apprentices.

Voluntary insurance is allowed to persons who wish to continue their insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The Scheme is financed by earnings related contributions payable by the insured person, the employer and the State.

In the case of employees: the contribution is 17,9% on his earnings, 6,8% payable by the employee, 6,8% payable by the employer and 4,3% by the State.

In the case of self-employed persons the contribution is 16,9% on the self-employed person's prescribed income, 12,6% is paid by the self-employed himself and 4,3% by the State.

In the case of voluntary insured persons the contribution is 14,8% on the earnings on which they opt to pay contributions. From the 14,8%, 11% is paid by the voluntary contributor and 3,8% by the State.

Transferring your social insurance benefits

Cyprus, as of 1 May 2004, applies the EC Regulation 1408/71 and 574/72 which coordinate the social security systems of the member states of the European Union, the European Economic Area and Switzerland. The EC Regulation 1408/71 governs the retention and transfer of social security entitlements when a person moves from one member state to another.

The principles of these regulations are:

  • No discrimination between nationalities (equal treatment)
  • Workers are subject to legislation of only one state at a time
  • The rights to benefits in course of acquisition are protected (aggregation of periods of insurance, employment or residence)
  • The rights you have already acquired are protected (e.g. you can receive the benefits you have already claimed wherever you live in the EU).

Furthermore, Cyprus has concluded reciprocal agreements on social security with 4 countries/areas other than the EU member states (Canada, Quebec, Egypt, Australia and Syria) for the purpose of maintaining the social security rights of persons who move between Cyprus and these countries.

Kinds of Benefits

The scheme provides for various benefits including marriage grant, funeral grant maternity grant, maternity allowance, sickness benefit, unemployment benefit, orphan's benefit, old age pension, widow's pension, invalidity pension

In addition, the Scheme provides free medical treatment to victims of industrial accidents and occupational diseases and to invalidity pensioners.

Kind of benefit

Beneficiaries and details

(a) Marriage Grant

Both spouses, employed, self employed and voluntary contributors based on the contributions of either of them. The amount of the marriage grant is €668 for each spouse for 2010.

(b) Maternity Grant

Mother, based on her or her husband’s contributions, employed, self-employed or voluntary contributor. The amount of the maternity grant is €491 for 2010.

(c) Funeral Grant

Employed, self-employed and voluntary contributors, pensioners. The amount of the funeral grant is €668 for 2010 and it is payable to the widow or the widower or the person who has undertaken the funeral expenses.

(d)Maternity Allowance

Employed, self-employed women and voluntary insured women in the service of Cypriot Employers abroad. Maternity allowance is payable for a period of 18 weeks.

(e) Sickness Benefit

Employed, self employed and voluntary contributors in the service of Cypriot Employers abroad. The benefit is paid for at least 156 days in each period of interruption of employment.

(f)Unemployment Benefit

Employed and voluntary contributors in the service of Cypriot Employers abroad. The benefit is paid for 156 days in each period of interruption of employment.

(g) Invalidity Pension

Employed, self employed and voluntary contributors in the service of Cypriot Employers abroad. Invalidity pension is payable to persons who have been incapable for work for at least 156 days and are expected to remain permanently incapable for work.

(h) Old age Pension

Employed, self employed and voluntary contributors. An insured person is entitled to old age pension at the age of 65. If the person satisfies certain conditions then he is entitled to old age pension at the age of 63.

(i) Widow’s Pension

Employed, self employed and voluntary contributors. Widow’s pension is payable to the woman who was living with her husband before his death, or was maintained by him. Widower’s pension is also payable to a man who is permanently incapable of self-support and was permanently maintained by his wife before her death.

(j) Orphan’s Benefit

Employed, self employed and voluntary contributors. In the case where the orphan is under the age of 18, or is incapable of acting regardless of age, the benefit is paid to the person that maintains him. In all other cases the benefit is payable to the orphan. The benefit is paid until the orphan becomes an adult. Where the orphan is incapable of self-support, it is paid for life.

Benefits for employment accidents

(k) Injury Benefit

Employed persons. Is payable from the fourth day of interruption of employment due to employment accident or occupational disease and continues to be paid for up to 12 months.   

(l)Disablement Benefit

Employed persons. May take the form of either a grand or a pension, depending on the degree of disablement. Disablement pension is payable to employed persons whose degree of disability was caused by employment accident or occupational disease and is 20% or more. It is payable for life except when the beneficiary recovers.
Disablement grant is payable to employed persons whose degree of disability is between 10%-19%. 

(m) Death Benefit

Employed persons. Death benefit is paid to the survivors of an employed person, who dies as a result of employment accident or occupational disease. The benefit includes: (i) widow’s pension, (ii) orphan’s benefit, (iii) parent’s allowance.

For more information:
Social Insurance Services
Tel.: +357 22401600
Fax.: +357 22672984
e-mail: interrel@sid.mlsi.gov.cy
or visit their website on www.mlsi.gov.cy/sid

More information about the Rights and Obligations of the Employers and Employees concerning the social security contributions can be found below:

Rules and procedures for Employers

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Rules and procedures for Employees

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