New settlement scheme for social insurance arrears initiated in Cyprus

The Ministry of Labour and Social Insurance of Cyprus has officially launched a new settlement scheme for outstanding social insurance contributions, totaling €245 million. Employers with arrears up to February 2026 and self-employed individuals with arrears up to the fourth quarter of 2025 are eligible to participate. Applicants can repay their debts in up to 54 equal monthly installments. The plan offers a reduction in additional penalties of up to 27%, depending on the payment schedule, with full exemption from penalties for lump-sum settlements. Applications must be submitted electronically through the official portal by September 14, 2026. Participants who adhere to the agreement will be protected from new legal actions, and existing criminal prosecutions may be suspended with the Attorney General's approval. Minimum monthly payments are set at €25 for debts under €500, €50 for debts between €501 and €1,000, and €75 for debts exceeding €1,001.