Registering as an employer with Cyprus social insurance

A Cyprus company that plans to hire staff, including a director who will draw a salary, must register as an employer with the Social Insurance Services before the first person starts work. Registration gives the company an employer number that is used for every contribution payment and every communication with the Services.

This step usually follows incorporation and tax registration, which are covered in our guide on how to set up a company in Cyprus. The rates and limits below are taken from the Business in Cyprus portal, the Social Insurance Services and the General Healthcare System (GESY) as of October 2026.

Registering in the Register of Employers

The Business in Cyprus portal explains that registration is made on application form YKA 01-001, submitted to the local Social Insurance District Office. A bilingual sample of the form is available for guidance. Once the application is processed, the Services issue an employer registration number.

Recruitment is then notified one employee at a time. Since 13 September 2021 the old paper recruitment declaration has been abolished, and each new hire must be notified electronically through the ERGANI system at ergani.mlsi.gov.cy no later than one day before the start of employment. The Ministry of Labour has appointed contact officers in each district office to help employers using the system.

Contribution rates for 2026

Contribution	Employer	Employee	Notes

|—|—|—|—|

Social insurance	8.8%	8.8%	State adds 5.2%; capped at insurable earnings
GESY (healthcare)	2.90%	2.65%	Applies to emoluments within the GESY ceiling
Redundancy Fund	1.2%	None	Capped at insurable earnings
Human Resource Development	0.5%	None	Capped at insurable earnings
Social Cohesion Fund	2%	None	Not capped

The Social Insurance Services announced in December 2025 that, from 2026, the maximum insurable earnings are €5,742 a month for monthly paid employees, from 1 January 2026, and €1,325 a week for weekly paid employees, from 5 January 2026. The same ceilings apply to contributions to the Annual Paid Leave Fund, the Redundancy Fund and the Human Resource Development levy. Employers may also contribute to the Central Holiday Fund unless they are exempt.

GESY publishes that employer contributions are 2.90% of each employee’s emoluments, while employees contribute 2.65%. The employer pays both shares and deducts the employee’s share from pay. GESY contributions apply to total income up to €180,000 a year.

If you would like help setting up payroll registration for a new company, our corporate services page explains how we coordinate the employer and tax steps.

Paying contributions on time

According to the portal, contributions must be paid by the end of the calendar month following the month to which they relate. Contributions for October are therefore due by the end of November. Late payment attracts surcharges, and the employer remains responsible for the employee’s share even if it was not deducted from pay.

Payroll records should show gross pay, the contributions withheld and the employer’s own share for each employee. The same records support the employer’s PAYE obligations to the Tax Department, which run in parallel.

Minimum wage and employment terms

The Business in Cyprus portal gives the national minimum wage for full-time employees as €1,000 gross a month, with a starting rate of €900 for the first six months of continuous employment with the same employer. The minimum wage is reviewed periodically, so the current figure should be confirmed with the Ministry of Labour before contracts are signed. Some sectors and roles have their own terms under collective agreements or specific orders, so the applicable minimum should be checked for each role.

Directors and staff from outside the EU

A director who is paid a salary is treated as an employee for contribution purposes. Hiring staff from outside the EU raises separate immigration questions, including residence and work permits. Companies with foreign shareholders may be able to use the Business Facilitation framework, described in our article on the Cyprus Business Facilitation Unit. Employees moving to Cyprus will also want to understand GESY healthcare for new residents and the 183-day and 60-day tax residency rules.

If you would like to talk through how these rules might apply to your own circumstances, our team would be glad to help. You can call +357 979 42 388 or write to us through our contact page.

Sources

• Business in Cyprus (Government of Cyprus), Social insurance registration and contributions, as of October 2026.
• Social Insurance Services, Notice on maximum insurable earnings for 2026, December 2025.
• General Healthcare System, GESY financing and contributions, as of October 2026.

This article is for general information only and does not constitute legal, tax or investment advice. Figures are stated as of 2026 and may change; confirm current requirements with the relevant authority and an independent adviser before acting. AT Express is a private consultancy and is not affiliated with any government or official programme.

Featured image: “Working at office (Unsplash)” by Javier Quesada quesada179, via Wikimedia Commons, CC0 (public domain dedication).