Thousands of Cypriots have applied to join a new government scheme allowing overdue Social Insurance Fund contributions to be repaid in installments, with outstanding liabilities totaling €245 million.
According to Phileleftheros, around 1,500 applications were submitted between mid-May and July 21, while many more people have contacted the authorities for information about the programme.
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Third Debt Settlement Scheme
The repayment plan, which came into effect in May, gives debtors a third opportunity to settle overdue social insurance contributions after similar schemes introduced in 2016 and 2021.
It covers employers with debts accumulated up to February 2026 and self-employed workers with outstanding contributions up to the fourth quarter of 2025. Applications must be submitted electronically through the Ministry of Labour and Social Insurance.
Repayment Conditions
Approved applicants may repay their debts in up to 54 equal monthly installments. Depending on the repayment schedule, reductions in additional charges can reach 27%.
The minimum monthly payment is €25 for debts of up to €500, €50 for debts between €501 and €1,000, and €75 for debts above €1,000. Participants must also continue paying their current social insurance contributions on time to remain eligible for the scheme.
Missed Payments
Applications are reviewed by the relevant authorities, with successful applicants receiving written confirmation of the repayment schedule and monthly installment.
Installments must be paid by the final day of each month. If a payment is missed, debtors may either pay it together with the following installment or spread the outstanding amount across the remaining repayment period.
However, the arrangement is canceled if an installment remains unpaid for more than three months or if current social insurance contributions are not paid on time.
Suspension Of Legal Action
Debtors accepted into the scheme will not face additional surcharges while they remain compliant. Criminal proceedings will not be initiated, while any ongoing cases will be suspended.
Where courts have already approved enforcement measures, execution will also remain suspended for as long as the debtor complies with the repayment arrangement.
