GHS Payments to be Increased on The 1st March 2020

Taxation for the first phase of the General Health System (GHS) in Cyprus commenced on 1st March 2019 and from 1st June 2019 all beneficiaries were able to access the care services such as doctor visits, medicine and laboratory examinations.

The first taxation phase introduced the payments from the employee and employer to the General Health System fund.

The percentages from 01/03/2019 up until 29/02/2020 and from 01/03/2020 and onwards are as follows:

Contributor’s Category 01/03/2019-29/02/2020 01/03/2020 onwards
(1) Employees/ pensioners/income earners/persons holding an office 1,70% 2,65%
(2) Employers 1,85% 2,90%
(3) Self-employed 2,55% 4,00%
(4) The Republic or natural/legal person responsible for the remuneration of Officers 1,85% 2,90%
(5) The Republic 1,65% 4,70%


The contributions are calculated based on the gross emoluments of each employee (including benefits in kind).

The second phase of the taxation of the GHS in Cyprus is due to commence on 1st March 2020. This will therefore mean that employees will contribute 2,65% of their salary and employer will contribute 2,90% of the salary of each employee. The increase being 56% for employees and 57% for employers from the first phase.

For the purposes of calculating the contributions, gross emoluments are limited to €180.000 per annum (except for categories (2), (4) and (5).

The contributions will increase in order of the General Health System to be able to commence its full operations by 1st June 2020.


For any questions or clarifications on the above amendment please contact our team of tax and payroll advisors.