We are excited to share critical information about the newly enacted decree on premium support, applicable for the period of March 2024 - February 2025, as part of the latest update to the Turkish Cypriot Social Insurance Law. This update brings significant changes that both employers and employees should be aware of. Here is a summary of the new decree:

Scope and Purpose

The decree aims to support the premium rates that employers are required to pay for their insured employees in a high inflationary environment. For a total of 12 months, premium support will be provided for employers operating in various sectors. However, certain organizations and sectors will not be eligible for this support.

Who Can Benefit?

The decree covers those who are insured under the Social Insurance Law and are actively registered with the Social Insurance Department. Nevertheless, independently financed organizations, public institutions and corporations, autonomous budget or revolving fund enterprises, foreign state institutions, and specific sector businesses (such as markets, off-licenses, market suppliers (excluding producers), pharmacies, fuel stations, banks, insurance companies, currency exchange offices, finance companies, betting offices, casinos, night clubs, nurseries, primary and secondary educational institutions, universities, hospitals, clinics, veterinary clinics, GSM operators, quarries, internet providers, cooperatives) as well as home services and civil society organizations operating in the social service sector are not eligible for this support.

Support Details

For the period of March 2024 - February 2025, the premium support is determined as 58% of the employer's share for the agriculture/livestock and production/manufacturing industry sectors, 58% for the hotel sector, and 50% for other sectors. Employers will be eligible for this support provided they have paid all due premiums for their employees and comply with specific conditions.

Obligations and Conditions

To benefit from the premium supports, employers must fulfill certain obligations. These include paying all premium debts, adhering to restructuring agreements and their conditions, not suspending employees (with certain exceptions), and completing premium payments by the 15th of the month following the relevant month. Additionally, under certain conditions, a refund of the premium support may be requested (e.g., if an employer who has benefited from the premium support fails to legally terminate an employee within the legal timeframe, the premium support paid from the date of the employee's termination may be reclaimed).

Should you have questions about whether your sector can benefit from this support, please do not hesitate to contact us. Our team is pleased to guide you on how your business can best take advantage of these new regulations.