The Social Insurance Contributions are based on the Insurable Earnings that include the basic salary, the cost of living allowance, commissions, the 13th and 14th salary or the 53rd/56th week, overtime etc. For the purpose of payment of contribution, the gross amount of earnings i.e. before the deduction of any taxes and contributions is taken into consideration.
Self Employed Persons
The insurable earnings of self-employed person's i.e. the earnings on which contributions are calculated, are determined according to the occupation and the time of employment.
For every occupational category there is a minimum amount of insurable earnings. However, the self-employed person has the right to pay contributions on a higher amount of insurable earnings up to the maximum amount of insurable earnings. If the actual earnings of the self-employed person is lower than the minimum amount of his occupational category, he can pay contributions on his actual earnings after providing sufficient evidence.
Voluntarily Insured Persons
The rate of contribution of the voluntary contributors is 17.1% from which 13% is payable by the voluntary contributor and 4.1% by the state. The rate of contribution for the persons working abroad in the service of Cypriot employers is 20.2% from which 15.6% is payable by the voluntary contributor and 4.6% by the state.