Insider Economy Public servants to contribute 1.8% to NHS

Public servants to contribute 1.8% to NHS

A cut of 1.7% plus 0.10% is expected to be the contribution of public servants to the island’s National Health Scheme Fund as of March 1, according to a circular issued by the Treasury of the Republic of Cyprus and sent out to all independent agencies.

The government and trade union officials seem to have agreed that in the first phase of the NHS, civil servants’ cuts will be in the range of 1.7% and 0.10%, covering inpatient care. This is something that PASYDY (public servants union) Secretary General Glafcos Hadjipetrou has  confirmed to Phileleftheros.

However, Finance Minister Harris Georgiades said that “the issue is still under consideration”. Today, civil servants contribute 1.5% of their salary to health care. The Treasury will be responsible for withholding the NHS contributions from civil servants as well as from state officials. That is, public servants will be contributing 1.8% of their income as of March 1 and for one year, while private employees will be contributing 1.7%.

On the other hand, employers will have to pay 1.85% (on the income of each employee separately) and the state 1.65%. Moreover, as of March 1, 2020 – that is, three months before the full implementation of the NHS- the Treasury’s circular points out that public servants’ cuts will increase to 2.65%. This will also apply to private employees, pensioners, rent receivers and state officials.

In addition to their own contributions, employers will also pay 2.9% for each employee while the state will be putting in 4.55% for each employee. It is noted that cuts for contributions to the NHS will come out  from a citizen’s total amount of income. That is, it will be the same as in the case of income tax payment where payers declare their revenue beyond earnings but also from other sources, such as rents.

As the Treasury notes in the circular, “from 1/3/2019 a cut of 1.70% should be deducted from the source, rent and interest payments where the beneficiaries are natural persons”. At the same time, it points out that “according to legislation, this percentage will be revised as from 1/3/2019 to 2,65%”. And that this cut will be additional to that for the special defence contribution.

The collected contributions will be transferred to the Health Insurance Fund that will operate under the Health Insurance Organisation.

By Eleftheria Peizanou

 

Read more:

https://in-cyprus.com/oeb-could-propose-postponement-of-nhs-contributions/

Top Stories

Russia’s Lavrov in Athens to discuss East Med regional issues

Russian Foreign Affairs Minister Sergei Lavrov on Monday is paying a working visit to Athens, Greece, with special attention to be paid to the...

Police hand out 81 fines over covid-19 measures violation

Police booked 78 individuals and three establishments all across Cyprus over the past 24 hours for violation of measures to contain the spread of...

Mainly fine on Monday, dust in the air

Mainly fine on Monday with variable light to moderate winds, force two to three Beaufort. The sea will be smooth to slight. Temperatures will rise to...

UK special forces storm tanker and detain stowaways in Channel

British special forces stormed a Greek-operated oil tanker in the English channel on Sunday to wrestle control of the vessel from seven stowaways who...

Family of dead man after gastric bypass surgery shout medical neglect

A 36-year-old obese man died days only after undergoing a gastric bypass surgery in a private clinic in Limassol in mid-October and his family is shouting...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...