Financing and Global Budget

How is the GHS financed?

 The GHS Fund revenues will come from contributions, co-payments, personal contributions 1, donations and legacies, income from assets of the HIO and any other income accrued from the activities of the HIO

1. Contributions

The main GHS source of financing is contributions.  The payment of the contributions for the first phase will start on 1 March 2019 and for the full implementation on 1 March 2020.
The Contributors’ Categories are:
  • Employees
  • Employers
  • State
  • Self-employed
  • Pensioners
  • Income-earners
  • Goverment Officials
  • Persons responsible for the payment of remuneration to Goverment Officials 
The contribution rates for each category of contributors as they have been set by the General Healthcare System (Amending) Law of 2017 are the following:
 Table: Contribution rates
Contributors Categories
First Phase
(As of 1/3/2019-28/2/2019)
Full Implementation
(As of 1/3/2020)
Employees (Public and
Private Sector)
1,70% 2,65% On their salaries 
Employers (Including the State as an Employer)
1,85% 2,90% On the salaries of every person employed by them
State 1,65% 4,70%
On the salaries of the employees, the remuneration of the self-employed and officials and on pensions
Self-employed 2,55% 4,00% On their remuneration
Pensioners 1,70% 2,65% On their pension
Income earners (e.g. rent, interest, dividends) 1,70% 2,65% On their income
Government Officials 1,70% 2,65% On their remuneration 
Persons responsible for the payment of remuneration to Goverment Officials  1,85% 2,90% On the remuneration of the Government Official 
For every natural person, the total maximum annual amount on which contributions will be paid is € 180,000.
In case that the natural person is not a tax resident of Cyprus, he/she will pay contributions only for the income, earnings and pensions that derive from the Republic of Cyprus, excluding dividends and interest. 

2. Co-Payments and Personal Contribution I and II

Wherever applicable, the beneficiaries, upon receiving healthcare services, will pay directly to the providers for the services they receive:
A. Co-Payment
This is an international best practice aiming at creating a responsible behaviour on behalf of the patients and healthcare providers and preventing abuse of the services offered.  For the healthcare services that a co-payment is applied, the beneficiary will pay directly to the healthcare providers the set amount, which will constitute part of the providers’ fee.
The healthcare service for which a co-payment will be paid and the amount of the said co-payment are set out in the table below:
Healthcare Services (Note 1)
Amount of Co-Payment
 € (euros)
Per pharmaceutical product 1.00
Per medical device or medical supplies 1.00
Per lab test or group of lab tests * (note 2) 1.00
Per visit to a nurse or midwife   6.00
Per healthcare service performed by a specialist doctor in radiology/diagnostic radiology  10.00
Per visit to allied health professionals 10.00
Per visit to a hospital to receive healthcare services in cases of accidents and emergencies 10.00
Note 1: No co-payment is paid in cases where the healthcare services are provided within the context of inpatient healthcare.
Note 2: The total maximum charge per category of lab tests is ten euro (€ 10)
A maximum annual amount of co-payments will be set for each beneficiary in order to protect vulnerable groups (e.g. low income persons and/or persons with increased needs in medical care) and safeguard unhindered access of the population to the necessary healthcare services. 
The maximum annual amount of co-payments will be € 75 for the recipients of the Guaranteed Minimum Income, the low- income pensioners and children up to the age of 21, and € 150 for the rest of the population.
B. Personal Contribution I and II
In case a Beneficiary visits directly an Outpatient Specialist, without a referral from their Personal Doctor, the Personal Contribution I will be paid as set out below:
Healthcare Services
Personal Contribution I Amount
€ (euros)
Outpatient visit without referral from Personal Doctor 25.00
A female beneficiary who has attained the age of 15 and visits an Outpatient Specialist in Gynaecology/Obstetrics, No charge
A beneficiary who  is serving his compulsory military service in the National Guard of the Republic and holds a referral by a military doctor referring him to an outpatient specialist No charge
In cases where Personal Contribution I is paid, no Co-payment will be paid for the same visit.  Personal Contribution I is paid directly by the beneficiary to the healthcare providers and constitutes part of the healthcare providers’ fee.
In cases where beneficiaries choose a more expensive pharmaceutical product than the one covered by the GHS they will pay a Personal Contribution II which is equal to the difference between the price of the pharmaceutical product covered by the GHS and the price of the pharmaceutical product that the beneficiary chose.  Personal Contribution II is paid in addition to the Co-payment or the Personal Contribution I.

3. What is the Global Budget?

The Global Budget is the annual expenditure for healthcare services covered by the GHS.  The Health Insurance Organisation (HIO) will set an individual global budget for each segment of healthcare providers following consultations with the respective representatives of the healthcare providers.  
In any given financial year, the actual expenditure for any segment of healthcare providers within the framework of the GHS cannot exceed the predetermined global budget, irrespectively of the volume of services provided.  This practice is a requirement for the sustainability of the System.
The annual global budget of each healthcare provider segment will be allocated to the 12 months of the year and will be made fully available to the healthcare providers.