Although its format may vary between employers, a typical payslip usually includes:

• gross salary: the amount before any deductions,
• net salary: the amount that is actually paid into our bank account,
• income tax (PAYE): the tax deducted, where applicable,
• Social Insurance contributions: mandatory insurance contributions,
• GESY contributions: payments for the General Healthcare System,
• employer contributions: amounts paid by the employer on our behalf, often shown separately,
• Tax Identification Number (T.I.N.) and other identifying details.

All this information helps us understand how our net salary is calculated.

Example of a payslip
Let’s assume we receive a monthly gross salary.

Our payslip may show:

• the gross salary,
• Social Insurance contributions,
• GESY contributions,
• income tax deductions (where applicable),
• any other legal deductions,
• and finally, the net salary paid into our bank account.

💡Note
The example payslip that may accompany this article helps us identify each of these elements and understand how they are connected.

For certain contributions in Cyprus, a maximum insurable earnings limit (cap) applies.

For 2025, in our example, a monthly insurable earnings limit of €5,005 is used.

This means that for some contributions, such as:

• Social Insurance,
• the Redundancy Fund,
• the Human Resource Development Levy,
• the Social Cohesion Fund,

calculations are made only up to this maximum limit.

In contrast, contributions to GESY are calculated differently according to current legislation and are not subject to the same cap.

⚠️Be careful
This example is provided to help explain how deductions work. Contribution limits and rates may change over time.

A payslip is not just proof of payment.

It helps us confirm that:

• our salary has been calculated correctly,
• overtime or allowances have been properly recorded,
• the required deductions have been correctly applied,
• our personal information is accurate.

Regular checks allow us to identify and correct any errors early.

Payslips are important personal financial documents.

It is recommended to keep them for at least six years, as they may be needed:

• when applying for a mortgage or other loan,
• when applying for government benefits,
• when submitting a tax return,
• for confirming insurance contributions and pension rights,
• for other administrative or financial purposes.

Keeping them properly organized can save time and effort in the future.

❌“I only need to look at my net salary.”
A payslip contains important information about our income and our rights.

❌“Once I’m paid, I don’t need to keep my payslip.”
Payslips may be required years later for financial or administrative purposes.

❌“All deductions are the same.”
Each deduction has a different purpose and is calculated based on different rules.

• A payslip shows how our salary is calculated.

• It includes both gross and net salary, as well as all deductions.
• It is important to check it every month for accuracy.
• Some contributions are subject to a maximum limit (cap).
• Payslips are important documents and should be kept for at least six years.

👉What’s next...

In addition to our tax obligations, the state also provides different forms of financial support to individuals and families who meet certain criteria.

In the next article, we will explore the most important government benefits and financial support schemes in Cyprus, who may be eligible, and why it is important to understand our rights.

🔗Useful Link

• How to Stay on Track with our Budget
• Government Benefits and Financial Support: Knowing Our Rights
• Tax Department - PAYE System and Income Tax Information
• Social Insurance Services - Contributions and Social Insurance Benefits
• General Healthcare System (GeSY)