Cyprus pension reform to require social insurance on dividends for low-salary owners

Cyprus plans to require company owners, directors and shareholders who draw dividends alongside low declared salaries to pay social insurance contributions on part of those dividend earnings under a proposed pension reform. Labour Ministry data cited by Philenews shows 2,990 owners, directors and shareholders in businesses with up to three people declare monthly salaries below €500 while also receiving dividend income. Overall, 11,500 declare monthly earnings of up to €2,000, with 26 per cent reporting salaries below €500. The draft law would include dividends from those businesses in the social insurance earnings calculation for employees who also hold shares where they work.