Cyprus Mail

Increased Gesy contributions for one month only

Salary deductions to support phase 2 of Gesy will be reduced from April until the end of June as part of the emergency package to deal with the coronavirus, Finance Minister Constatinos Petrides said on Monday.

For March, an employee will be deducted 2.65 per cent as previously agreed, with employers contributing 2.90 per cent. The self-employed are among the highest contributors, as their payment will increase from 2.55 per cent to 4 per cent. Meanwhile the state, will pay 4.7 per cent.

But from April, the rates will be slashed across the board for three months (until June 30). Employees, pensioners, persons holding any office and income will be charged a rate of 1.7 per cent, self-employed individuals 2.55 per cent, employers and the state 1.85 per cent. The state will also pay a fixed fund at 1.65 per cent.

In July, the rates will return to those announced in March.

Phase two of Gesy is rolling out in about three months, on June 1, but payments towards it are being made in advance.

The second phase of the public health service will include inpatient care which will be substantially more costly and burdensome than the outpatient care of phase 1, reflecting the increased contribution from earners.

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