Increase in GHS (GESY) contributions by employees and employers from March 1st 2020
By: P. Constantinou & Co Ltd
The Cyprus General Healthcare System (GESY) is a modern, patient-centric healthcare system with the aim of delivering quality healthcare services to all its beneficiaries.
The main features of this newly introduced system (2019) is to offer universal coverage to all Cypriot citizens, to provide equal and equitable treatment, giving the freedom of choice of health provider by the beneficiaries and more.
The first phase of GESY started on 1 March 2019 while the full implementation is set to be on 1 March 2020. The Contributors to the system are Employees, Employers, the State, Self-employed persons, Pensioners, Income-earners, Government Officials and Persons responsible for the payment of remuneration to Government Officials.
As from 1st of March 2020, there will be an increase in the contributions paid by all the above contributors as shown in the chart below:
First Phase from 1/3/2019-28/2/2019)
|Employees||1.70%||2.65%||Of their salary|
|Employers||1.85%||2.90%||On the salary of every person employed|
|State||1.65%||4.70%||On the salary of employees, remuneration of self-employed, officials and on pensions|
|Self-employed||2,55%||4.00%||On their remuneration|
|Pensioners||1.70%||2.65%||On their pension|
|Income earners (for example rent, interest or dividends)||1.70%||2.65%||On their income|
|Government Officials||1.70%||2.65%||On their remuneration|
|Persons responsible for the payment of remuneration to Government Officials||1.85%||2.90%||On the remuneration of the Government Official|
There are two very important details that the GESY contributors must take into considerations.
The first is that for every natural person the total maximum annual amount on which contributions will be paid is € 180,000 and the second is that if the natural person is not a tax resident of Cyprus, he will pay contributions only for the income, earnings, and pensions that derive from the Republic of Cyprus, excluding dividends and interest.
For more information and clarifications about the above changes in the GESY contributions by employees and employers please feel free to contact P. Constantinou & Co. Ltd and our expert team of advisors.