Payroll & Social Insurance
Accurate monthly payroll and social-contribution compliance for your Cyprus team.
At a glance
- Employee Social Insurance
- 8.8%
- Employee GHS
- 2.65%
- Employer on-costs
- ~15%+ of gross
- Filing
- Monthly + annual TD7
Payroll in Cyprus is the monthly process of calculating employees' net pay and the contributions due on their salaries. Employees pay 8.8% Social Insurance and 2.65% GHS (GeSY) plus income tax (PAYE); employers pay 8.8% Social Insurance, 2.9% GHS and three further funds — Redundancy (1.2%), Industrial Training (0.5%) and Social Cohesion (2.0%) — adding roughly 15%+ on top of gross salary.
- Employee SI + GHS
- 8.8% + 2.65%Employee SI + GHS
- Employer on-costs over gross
- ~15%+Employer on-costs over gross
- Max insurable earnings (2026)
- €68,904Max insurable earnings (2026)
- Contribution filings
- MonthlyContribution filings
Employing people in Cyprus brings monthly obligations: PAYE income tax, Social Insurance, the General Healthcare System (GHS/GeSY) and other employer funds. We run payroll end-to-end so your staff are paid correctly and your filings are always on time.
Employees contribute 8.8% to Social Insurance and 2.65% to GHS, while employers contribute 8.8% Social Insurance, 2.9% GHS plus Redundancy, Industrial Training and Social Cohesion funds. We calculate every component precisely.
Why clients choose us
- Correct contributions to Social Insurance, GHS and all funds
- On-time monthly and annual filings
- Confidential, professional handling of staff pay
- Clear reporting of total employment cost
What our payroll & social insurance covers
Monthly payroll processing
Calculation of gross-to-net pay, deductions and employer contributions.
Payslips
Confidential digital payslips distributed to each employee.
Social Insurance & GHS filings
Monthly contribution returns and payments to the Social Insurance Services.
PAYE & Emoluments returns
Employee tax deductions and the annual employer's return (TD7).
Employee onboarding
Registration of new hires and handling of leavers and final settlements.
Payroll advisory
Guidance on benefits in kind, bonuses, 13th salary and employment cost planning.
What does an employee pay in Cyprus?
From an employee's gross salary you deduct three things before they are paid: Social Insurance, the General Healthcare System (GHS/GeSY) contribution, and income tax (PAYE) where their income exceeds the €22,000 tax-free band.
| Employee deduction | Rate | Notes |
|---|---|---|
| Social Insurance | 8.8% | Capped at €68,904 of annual insurable earnings (2026) |
| GHS (GeSY) | 2.65% | Capped at €180,000 of income |
| Income tax (PAYE) | 0–35% | Progressive; first €22,000 is tax-free |
Social Insurance and GHS are deductible before income tax is calculated, so the taxable figure is gross pay less those two contributions.
What does it cost an employer to hire someone?
On top of gross salary, the employer pays its own contributions to Social Insurance, GHS and three secondary funds. Together these add roughly 15%+ to the cost of employment.
| Employer contribution | Rate | Earnings ceiling |
|---|---|---|
| Social Insurance | 8.8% | Capped at €68,904 |
| GHS (GeSY) | 2.9% | Capped at €180,000 |
| Redundancy Fund | 1.2% | Capped at €68,904 |
| Industrial Training (HRDA) | 0.5% | Capped at €68,904 |
| Social Cohesion Fund | 2.0% | No earnings ceiling |
| Total employer on-cost | ~15.4% | On a €30,000 salary, about €4,600+ |
Because the Social Cohesion Fund has no earnings ceiling while the others are capped at €68,904, the effective employer on-cost percentage falls slightly for high earners. Our Social Insurance & payroll cost calculator shows the exact figure for any salary.
Contribution caps for 2026
Social Insurance and the capped funds apply only up to maximum insurable earnings of €68,904 per year (€5,742 per month). GHS applies up to €180,000 of income. The Social Cohesion Fund is the exception — it is charged on the full salary with no ceiling.
Monthly and annual payroll filings
Cyprus payroll runs on a monthly cycle. Each month, contributions and PAYE are calculated, reported and paid to the Social Insurance Services and the Tax Department. After year-end, the employer files the annual employer's return (TD7), reconciling everything reported during the year. Missing these filings or paying late triggers penalties and interest, so reliable monthly processing matters.
- Monthly — gross-to-net calculation, payslips, Social Insurance and GHS returns, PAYE payment.
- On joining/leaving — registration of new hires and final settlements for leavers.
- Annually — the TD7 employer's return and employee tax certificates.
Benefits in kind, 13th salary and bonuses
Non-cash benefits — company cars, accommodation, loans and similar — are generally taxable benefits in kind and must be valued and reported correctly. The customary 13th salary, bonuses and commissions are also subject to contributions and PAYE. We handle the calculations so your filings are accurate and your employees are taxed correctly.
Employee take-home vs. total employer cost
A simple illustration on a €30,000 gross annual salary (figures rounded; see the calculators for exact amounts).
| Employee perspective | Employer perspective | |
|---|---|---|
| Starting point | €30,000 gross | €30,000 gross |
| Social Insurance | −8.8% | +8.8% |
| GHS (GeSY) | −2.65% | +2.9% |
| Other funds | — | +3.7% (redundancy, training, cohesion) |
| Income tax (PAYE) | Progressive, after €22,000 free | — |
| Net result | Take-home pay | ≈ €34,600+ total cost |
Who it's for
This service is built for the people and businesses below. Not sure if it fits? Tell us your situation and we'll point you the right way.
- Employers running a Cyprus payroll
- Companies hiring their first Cyprus staff
- Businesses with directors on payroll
- Firms that need accurate employment-cost planning
Transparent, fixed pricing
Fixed monthly fee per employee — payslips and filings included.
Let's talk about your payroll & social insurance
Book a free, no-obligation consultation with a qualified Cyprus adviser and get a clear quote before any work begins.
Questions, answered
Employees pay 8.8% Social Insurance and 2.65% GHS on their earnings, plus income tax (PAYE) where their income exceeds the €22,000 tax-free band. Try our Net Salary calculator for an instant estimate.
On top of gross salary, employers pay 8.8% Social Insurance, 2.9% GHS, 1.2% Redundancy Fund, 0.5% Industrial Training and 2% Social Cohesion Fund. Our Social Insurance & Payroll Cost calculator shows the total.
Yes. Social Insurance and the related funds are capped at maximum insurable earnings of €68,904 for 2026 (except the Social Cohesion Fund, which has no ceiling). GHS contributions are capped at €180,000 of income.
Once the company is registered as an employer with the Social Insurance Services and the Tax Department, we can run the first payroll within days. If those registrations are not yet in place, we handle them as part of onboarding.
It depends on whether they are remunerated and on their role and residency. Executive directors drawing a salary are typically on payroll with Social Insurance and GHS due; non-executive or non-resident arrangements differ. We advise on the correct treatment for each director.
Yes. Employees are entitled to a payslip showing gross pay, deductions and net pay. We issue confidential digital payslips to each employee every pay run.
Guides & calculators
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Learn moreReady to get your numbers in order?
Book a free, no-obligation consultation. We'll review where you stand and show you exactly how we can help your business or personal finances in Cyprus.
No fees. No obligation. Speak with a qualified professional today.