Social Insurance Law

06/03/2009 - 20:23

The Social Insurance Law was passed on July 16, 1980, and applies since then with the amendments made at times. This Law is the evolutionary form of the Social Insurance that applied until 1980, introducing the proportionary system, i.e. every insured person receives allowances according to his/her contributions.

This Law provides for the mandatory insurance of all workers in the Social Insurance Scheme, employees and the self-employed, the contribution that every insured person makes, and the benefits that the insured have from the Scheme.

The contributions to the Scheme both of the employees and the self- employed is 16,6% on the insured income.

For employees, the contribution is paid by the employer who deducts 6,3% of the employees' income and pays 6,3% himself, while the remaining 4% is paid by the state.

The benefits the insured are entitled to and the preconditions for someone to be entitled are the following:

Contributions

Entitled

Preconditions

1. Marriage allowance

Women employees,self-employed women and optionally insured women.

a) Wedding,
b) 26 weeks of contributions before the wedding,
c) 20 times the weekly amount of basic insured income, real or credited to the previous year.

2. Child allowance

Employees, self employed and optionally insured.

a) Childbirth,
b) 26 weeks of contributions of the mother or the husband before childbirth,
c) 20 times the weekly amount of basic insured income, real or credited to the previous year.

3. Funeral allowance

Employees, self employed and optionally insured.

a) 26 weeks of contributions before the death,
b) 20 times the weekly amount of basic insured income, real or credited to the previous year.

4. Maternity allowance

Women employees,self-employed women and optionally insured women in the service of a Cypriot abroad.

a) 26 weeks of contributions on the amount of the insured income,
b) 20 times the weekly amount of basic insured income, real or credited to the previous year.

5. Sickness allowance

Employees, self employed and optionally insured in the service of a Cypriot abroad.

a) Must not work due to sickness,
b) 26 weeks of contributions on the amount of the insured income,
c) 20 times the weekly amount of basic insured income, real or credited to the previous year.

6. Unemployment benefit

Employees, self employed and optionally insured in the service of a Cypriot abroad.

a) Must be unemployed and fit to work,
b) 26 weeks of contributions on the amount of the insured income,
c) 20 times the weekly amount of basic insured income.

7. Missing person's allowance

Employees, self employed and optionally insured.

a) For the wife of a missing person the preconditions are the same as those of the widow's pension and for the underage children the same with the orphan's allowance.

8. Disability allowance

Employees, self employed and optionally insured in the service of a Cypriot abroad.

a) To have been unable to work for 156 days during the same period,
b) 156 times the weekly amount of the basic insured income,
c) a weekly average of real and credited income equal to 1/4 of the weekly amount of basic insured income,
d) 20 times the weekly amount of basic insured income.

9. Senior citizen pension

Employees, self employed and optionally insured.

a) Three years from the day of insurance until retirement age and to have paid 156 times the weekly amount of the basic insured income,
b) a weekly average of real and credited income equal to 1/4 of the weekly amount of basic insured income.

10. Widow's pension

Employees, self employed and optionally insured.

a) For the husband to have been receiving a pension or to have been under the age of 63 and have paid contributions not less than 156 times the weekly amount of basic insured income, b) the widow to have lived with her husband or to have been supported by him.

11. Orphan's allowance

Employees, self employed and optionally insured.

a) For one of the parents to have been insured.

12. Bodily harm allowance

Employees

a) To be unable to work due to a work accident or vocational illness,
b) not to receive full pay from the employer for as long as the affected person is not working.

13. Allowance for disability from a work accident or vocational illness,
a)Disability pension,
b) Disability benefit

Employees

The disability pension will be given if the degree of disability is over 20%. The disability benefit will be given if the degree of disability is from 10% to 19%.

14. Allowance for death from a work accident or vocational illness,
a) Widow's pension,
b) Orphan's allowance,
c) Parent's pension

 

The widow's pension will be given if the widow lived with her husband or was supported by him. The orphan's allowance will be given if one of the parents died in a work accident or from a vocational illness. The parent's pension will be given if the person who died did not leave a widow or orphans and the parent was supported by the deceased.