The earnings ceilings for 2026
The Cyprus Social Insurance Services set maximum insurable earnings at €5,742 for monthly paid employees from 1 January 2026 and €1,325 for weekly paid employees from 5 January 2026. These limits are relevant when calculating contributions on remuneration above the applicable ceiling.
Know which contributions the ceiling covers
The official notice covers Social Insurance, the Central Holiday Fund, the Redundancy Fund and the Human Resource Development levy. It should not be read as prescribing one common ceiling for every payroll deduction or employer charge. Other contributions must be checked under their own rules.
What this means for company budgets
For an overseas group employing staff in Cyprus, payroll forecasts should reflect the current ceiling wherever it applies. A ceiling is a calculation limit, not a salary requirement. The effect on a particular employee depends on their remuneration, pay frequency and the contributions relevant to their employment.
Check the payroll settings
Ask your payroll provider to confirm that the 2026 ceilings have been loaded correctly. Review the treatment of bonuses, a thirteenth salary and variable remuneration under the applicable payroll rules. Where a discrepancy is identified, have the provider assess the required correction to calculations, declarations and payments.
Keep a clear monthly record
Retain a reconciliation between payroll, the relevant contribution declarations and the amounts paid. For overseas management teams, a concise monthly report makes it easier to monitor costs and unresolved items. Contact Credora Management Ltd to coordinate payroll records and the administrative information required by your advisers.
Sources
General information as at 12 October 2026. This article is not individual tax or legal advice. The treatment of a particular company or transaction depends on its circumstances.