Social tax in Cyprus

Social tax, also known as social security contributions, is a tax that is paid by both employees and employers to fund various social security benefits, such as pensions, healthcare, and unemployment benefits. In Cyprus, the social security system is managed by the Social Insurance Services (SIS) and is funded by both the government and social tax contributions.

The social tax rate in Cyprus is 14.8% for employees and 15.6% for employers. This means that if an employee earns €2,000 per month, their social tax contribution will be €296, while their employer's contribution will be €312.

The social tax is calculated based on the employee's gross salary and is deducted from their monthly salary before tax. The employer is responsible for paying their share of the social tax contributions to the SIS.

It is important for employers to ensure that they are accurately calculating and paying their social tax contributions to avoid penalties or legal consequences. Employers may also be required to provide social security benefits to their employees, such as paid leave or healthcare coverage.

In addition to the standard social tax contributions, there are also additional contributions for certain professions, such as self-employed individuals, farmers, and artists.

Overall, the social tax in Cyprus is an important aspect of the country's social security system, providing support and benefits to both employees and employers. Employers should ensure they are meeting their social tax obligations to avoid any legal or financial issues.