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Cyprus Health

Employers warned ahead of March 1 launch of Gesy contributions

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Cabinet on Thursday called on employers to ensure salary contributions for the first phase of the National Health Scheme (Gesy), which kick in from Friday, are in place and follow the law.

Deputy government spokesperson Klelia Vasiliou said that contributions will start as of March 1.

Cabinet, she said, calls on the boards of public law bodies, including local authorities, higher education institutions, government agencies and businesses, “to take appropriate action”.

They must also adapt existing private healthcare plans, taking into account the coverage to be granted in the first phase of Gesy for the period from June 1, 2019 to May 31, 2020. The first phase will cover out-patient care.

Employers were also urged to remove all private healthcare plans from June 1, 2020 with the full implementation of Gesy, when in-patient care is introduced, and adapt their budgets accordingly.

Employers were also warned not to incorporate the existing costs for medical coverage of their companies into employee salaries.

Vasiliou also said that cabinet approved the budget of the Health Insurance Organisation (HIO) for 2019 which estimates costs at €394.8m.

From March 1, employees will contribute 1.7 per cent of their wages with employers contributing 1.85 per cent of each employee’s wages. The self-employed will contribute 2.55 per cent of their insurable income. From March 2020, ahead of the full implementation of Gesy in June, these percentages will increase to 2.65 per cent for employees, 2.90 per cent for employers and 4 per cent for the self-employed.

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