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					This is a consolidated version of this legislation i.e. it incorporates all amendments made since the
legislation was enacted as set out in the table below. It has been produced by the SBAA as an aid to
transparency and easier access to SBA law. However, it is not the official version of SBA legislation
and, although every effort has been made to check the document, its accuracy cannot be guaranteed.
The official version of legislation is published in the SBA Gazette.

Legislation incorporated in this consolidation                            Ordinance    Date in force
                                                                          No.
The Social Insurance (Facilitation of Republican Social Insurance Scheme) 16/80        1 October 1980
Ordinance 1980                                                            5/83         4 April 1983
The Social Insurance (Facilitation of Republican          Social   Insurance
Scheme)(Amendment) Ordinance 1983
The Social Insurance (Facilitation of Republican          Social   Insurance   1/84    19 March 1984
Scheme)(Amendment)
 Ordinance 1984                                                                5/85    25 April 1985
The Social Insurance (Facilitation of Republican          Social   Insurance
Scheme)(Amendment)
  Ordinance, 1985                                                                      19 December
The Social Insurance (Facilitation of Republican          Social   Insurance   17/85   1985
Scheme)(Amendment)
  Ordinance, 1985
The Social Insurance (Facilitation of Republican          Social   Insurance           30 March 1987
Scheme)(Amendment)                                                             6/87
  Ordinance, 1987
The Social Insurance (Facilitation of Republican          Social   Insurance   24/87   15 December
Scheme)(Amendment)                                                                     1987
  Ordinance, 1987
The Social Insurance (Facilitation of Republican          Social   Insurance
                                                                               14/88
                                                                                       20 July 1988
Scheme)(Amendment)
  Ordinance, 1988                                                              4/90    2 April 1990
The Social Insurance (Facilitation of Republican          Social   Insurance
Scheme)(Amendment)
  Ordinance, 1990
                                                                               1/93    1January 1993
The Social Insurance (Facilitation of Republican          Social   Insurance
Scheme)(Amendment)
  Ordinance, 1993
The Social Insurance (Facilitation of Republican          Social   Insurance   27/02
Scheme)(Amendment)                                                                     30 October 2002
  Ordinance, 2002
The Social Insurance (Facilitation of Republican          Social   Insurance   33/03   25 July 2003
Scheme)(Amendment)
  Ordinance, 2003                                                              23/04   28 September
The Social Insurance (Facilitation of Republican          Social   Insurance           2004
Scheme)(Amendment)
  Ordinance, 2004 The Social Insurance (Facilitation of   Republican Social    6/09    6 April 2009
Insurance Scheme)(Amendment)
  Ordinance, 2009




                            AN ORDINANCE
   RELATING TO THE FACILITATION IN THE SOVEREIGN BASE AREAS OF THE
 ENFORCEMENT OF A SOCIAL INSURANCE SCHEME FOR THE ISLAND OF CYPRUS
  CREATED UNDER THE PROVISIONS OF THE REPUBLICAN SOCIAL INSURANCE
                                LAW.


1.      Short Title




SBA/AG/2/EM/130                                                                          page - 1 - of 20
   This Ordinance may be cited as the Social Insurance (Facilitation of Republican Social Insurance
Scheme) Ordinance, 1980.
2.         Interpretation

      In this Ordinance, unless the context otherwise requires-

           “accident” means an accident which arises out of and in the course of the employment of an
      insured person;

           “appointed day” means such date as the Administrator may by order appoint for the coming
      into operation of the provisions of this Ordinance;

           “basic insurable earnings” means a prescribed amount of insurable earnings;

            “beneficiary” in relation to any benefit payable under the Republican Law, means the person
      entitled to that benefit under that Law;

           “benefit” means benefit which is payable under the provisions of the Republican Law;

           “ceiling of insurable earnings” means the prescribed maximum earnings on which
      contributions are payable;

           “claimant” means a person claiming any benefit under this Ordinance;

            “contribution month” in relation to an employed person whose earnings are calculated on a
      monthly basis, means the calendar month and in the case of other insured persons, a period of four
      or five weeks which begins in each calendar month;

          “contribution period” in relation to an employed person whose earnings are calculated on a
      monthly basis, means the calendar month and in the case of other insured persons the calendar
      week;

            “contribution year” in relation to employed persons whose earnings are calculated on a
      monthly basis, means the calendar year in relation to other insured persons, a period of fifty two
      or fifty three weeks beginning on the first Monday in any year and ending on the Sunday before
      the first Monday in the following year:

           Provided that the first contribution year under this Ordinance shall begin on 6th October,
      1980 and shall end, in the case of monthly-paid employed persons on 31st December, 1981 and in
      the case of the other insured persons on 3rd January, 1982;

           “Cyprus” for the purposes of this Ordinance includes the Sovereign Base Areas.1

           “earnings” in relation to-

           (a) an employed person, includes any monetary remuneration in his employment or any profit
                   having ascertainable money value derived from such employment as well as the
                   contribution of the employer in respect of an employed person to the Central Holiday
                   Fund of the Republic, excluding however occasional commissions and ex-gratia
                   payments;

           (b) a self-employed person means the prescribed amount of income every gain or profit from
                    his occupation 2;

1
    Definition inserted by Ordinance 33/03


SBA/AG/2/EM/130                                                                              page - 2 - of 20
           “employed person” means a person who is employed in any insurable employment specified
      in Part 1 of the First Schedule to this Ordinance;

          “employer” includes the Crown and the Government of the Republic of Cyprus;

          “former beneficiary” means the beneficiary under the repealed Ordinance;

           “former insured person” means a person who has been contributing under the repealed Social
      Insurance Ordinance or repealed Republican Law;

          “Fund” means the Social Insurance Fund established under the provisions of the Republican
      Law;

           “Holiday Fund of the Republic” means the Holiday Fund established under the provisions of
      the Annual Holidays with Pay Law of the Republic(a);

           “insurable earnings” manes the amount of earnings of an insured person on which
      contributions are payable under this Ordinance;

           “insurable employment” means any employment specified in Part 1 of the First and Second
      Schedule to this Ordinance, unless it is an excepted employment, that is to say, an employment
      specified in Part II of those Schedules;

          “insured person” means a person insured under this Ordinance;

           “medical treatment” means medical, surgical or rehabilitation treatment, including any course
      or diet or other regimen, and pharmaceutical aids;

          “member State” means a member State of the European Union. 3

          “negligible earnings” means earnings of an employed person below a prescribed weekly or
      monthly amount, and the term “negligible” shall be construed accordingly;

          “pensionable age” means the age of 65 years;

          “pensionable age” means for a male person the age of sixty five years and a female person
the       age of sixty three years; 4

           “pensionable age” means the age of sixty five years, except in a case of a female insured
      person who was born before the year 1935 where it means the age of sixty three years.5

          “pension scheme” means any scheme or arrangement operated by or on account of an
      employer or employers providing for the payment of pensions on retirement or death in relation to
      an employed person;

            “Provident fund” means any fund or arrangement operated by or on account of an employer
      or employers providing for lump sum payments on termination of employment, retirement or death
      in relation to an employed person;

          “Regulations” means regulations made by the Administrator;


2
  Text deleted and inserted by Ordinance 5/85
3
  Definition inserted by Ordinance 33/03
4
  Definition deleted and replaced by Ordinance 4/90
5
  Definition deleted and new definition inserted by Ordinance 1/93


SBA/AG/2/EM/130                                                                            page - 3 - of 20
         “repealed Ordinance” means the Social Insurance Ordinance, 1972, repealed by this
     Ordinance;

         “Republican Law” means the Social Insurance Law 1980(b) of the Republic or any
     Republican Law amending or substituted for the same and subsidiary legislation of the Republic
     made thereunder;

          “self-employed person” means a person who is employed in any insurable employment
     specified in Part I of the Second Schedule unless such employment is excepted under Part II of the
     Second Schedule to this Ordinance.

3.       Persons to be insured

  Subject to the provisions of this Ordinance, the following persons shall be insured under this
Ordinance:-

     (a) employed persons, that is to say, person gainfully occupied in the Areas in an insurable
          employment specified in Part I of the First Schedule but excluding persons specified in Part II
          of that Schedule;

     (b) self-employed persons, that is to say, persons gainfully occupied in the Areas in an insurable
          employment specified in Part I of the Second Schedule but excluding persons specified in
          Part II of that Schedule:

   Provided that contributions paid or persons insured under the Republican Law shall be deemed to
be contributions paid or persons insured under this Ordinance.

4.       Contributions for employed persons

   (1) For each contribution period during the whole or part of which a person has been an employed
person, contributions shall be payable by the employed person and his employer at the rate prescribed
in accordance with the provisions of this Ordinance.

   (2) Notwithstanding the provisions of subsection (1) of this Section, no contribution shall be
payable-

     (a) for any contribution period in respect of any one employment from which the earnings of the
          employed person are negligible unless the employed person is an apprentice or a person
          undergoing imprisonment; and 6

     (b) for any contribution period or part thereof which follows the date commencing on or after the
          date7 on which the employed person attains pensionable age unless he does not satisfy the
          contribution conditions for old age pension;

     (c) in respect of an employed person who has not paid a contribution prior to the date on which he
           attained pensionable age.

5.       Amount of contributions in respect of employed persons

   (1) Subject to the provisions of this Ordinance the amount of contributions payable in respect of
the employment of an employed person, shall be at the rate of at 12% 12.6%8 of his insurable
earnings, of which an amount equivalent of 6% 6.3% of the insurable earnings of the employed

6
  Text added to paragraph (a), text deleted in paragraph (b) and deletion of paragraph (c) by Ordinance 17/85
7
  Text deleted and new text inserted by Ordinance 1/84
8
  Percentages amended by Ordinance 1/93


SBA/AG/2/EM/130                                                                                    page - 4 - of 20
persons shall be paid by the employer and an amount equivalent to 6% 6.3% of such earnings by the
employed person:

   Provided that where a person is employed by an employer who provides for his employees a
pension scheme which is non-contributory on the part of the employee the amount of contributions
payable by the employer shall be at the rate of 9% 9.4% of the insurable earnings of the employed
person and the amount of contributions payable by the employed person at 3% 3.2% of such
earnings.9

   (1) Contributions in respect of the employment of an employed person are payable at the same rate
as are payable in the Republic under Republican law.

   (2) For the purposes of calculating the amount of contributions payable for each contribution
period or part thereof in respect of the employment of an apprentice without earnings or with earnings
which are less that half the amount of basic insurable earnings it shall be presumed that he receives
insurable earnings equal to one half of the basic insurable earnings.

   (3) For the purposes of calculating the amount of contributions payable for each contribution
period or part thereof in respect of the employment of an employed person who is undergoing
imprisonment it shall be presumed that his insurable earnings are equal to the basic insurable
earnings.

   (4) Subject to the provisions of Section 10 of the Ordinance, the employer shall be liable to pay
both the contribution payable by himself in respect of the employed person and the contribution
payable by that person and contributions paid by an employer on behalf of an employed person shall
be deemed to be contributions paid by the employed persons.

   (5) In respect of a category or class of employed persons who are usually employed by two or
more employers in the same contribution period, Regulations may provide for the manner of payment
by the employed person of both contributions which the employer is liable to pay under subsection (4)
of this Section of the Ordinance and for the obligations of such employed persons and their
employers.
                                                                                                    10
6. Refund of contributions to employed persons who join a pension scheme retrospectively

   An employed person to whom the provisions of subsection (1) of Section 5 of the Ordinance do
not apply shall be entitled when he joins with retrospective effect a non-contributory pension scheme
to a refund by his employer equal to 3% of his total insurable earnings in respect of his employment
which has been recognised as pensionable under the said pension scheme.

6.      Refund of contributions employed persons who join a non-contributory pension scheme
        retrospectively 11

   Where an employed person to whom the proviso to subsection (1) of Section 4 of the Ordinance
does not apply joins with retrospective effect a non-contributory pension scheme, he shall be entitled
to a refund by his employer equal to 3% of his total insurable earnings in respect of his employment
which has been recognised as pensionable under the said pension scheme, up to and including the 31st
December, 1992 and a refund equal to 3,1% of the total of his insurable earnings in respect of any
such period of employment occurring after the 31st December, 1992.




9
  Subsection (1) repealed and replaced by Ordinance 6/09
10
   Section 6 repealed and replaced by Ordinance 1/93
11
   Section 6 repealed and replaced by Ordinance 6/09


SBA/AG/2/EM/130                                                                          page - 5 - of 20
6.      Refund of contributions to employed persons who join a non-contributory occupational
        pension scheme retrospectively

    (1) An employed person who retrospectively joins a non-contributory occupational pension scheme
is entitled to a refund by his employer for the period of employment preceding the date he joined the
scheme but which is reckonable under that pension scheme at the rates payable in the Republic under
Republican law.

    (2) For the purposes of subsection (1), a person retrospectively joins an occupational pension
scheme when the date he joins the scheme is later than the date he begins employment, but some or all
of the period of employment before he joins the scheme is recognised as reckonable for the purposes
of calculating the amount of his pension under that pension scheme.

7.      Special contribution by employers in certain cases

   If in the incidence of pneumoconiosis, silicosis, siderosilicosis, asbestosis or any of those
conditions accompanied by tuberculosis, increases, Regulations may provide a special contribution by
a particular employer or category of employers, in addition to the contribution under Section 5 of the
Ordinance in respect of the employment of the employed person in an occupation involving a risk of
any of those diseases.

8.      Employment of an employed person by two or more employers

   If an employer person is employed by two or more employers in the same contribution period,
there shall be a liability for the payment of contributions in respect of his employment by each of his
employers.

9.      Employment of an insured person as an employed and self-employed person

   If an employed person is employed in the same contribution period concurrently or successively as
an employed and as a self-employed person, there shall be a liability for the payment of contributions
for both employments.

10.     Deduction of contributions of the employed persons by the employer

   (1) Notwithstanding any contract to the contrary, an employer shall not be entitled to deduct or
otherwise recover from the earnings of a person employed by him the amount of contributions
payable in respect of the employed person; and any employer who deducts or attempts to deduct the
whole or any part of the amount of the contributions payable by him in respect of that person from the
earnings due from the employer of that person he shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding three hundred pounds.

   (2) Where an employed person receives any payment from his employer, the amount of any
contribution paid by the employer on behalf of the employed person, notwithstanding the provisions
of any Ordinance or any contract, may be deducted or recovered from the earnings due from the
employer to that person in respect of any contribution period or part thereof for which such amount of
contribution is payable but not otherwise.

   (3) The employer of an apprentice shall be liable to pay both the amount of contributions payable
by him and the amount of contributions payable by the apprentice on the difference between the
actual earnings and the earnings presumed to be received by the apprentice under subsection (2) of
Section 5 of the Ordinance and he shall not be entitled to recover any part thereof from the apprentice.

  (4) In respect of an employed person undergoing imprisonment in the Areas the Crown, as
employer, shall be liable to pay both the contribution payable by the Crown and the contribution



SBA/AG/2/EM/130                                                                            page - 6 - of 20
payable by that person and Regulations may provide for the recovery of the whole or part of the
contribution of the employed person from any remuneration payable to him.

11.       Liability for the payment of contributions by self-employed persons

   (1) For each contribution period during the whole or part of which a person has been employed as
a self-employed person, there shall be a liability for the payment of contributions by that person.

   (2) Notwithstanding the provision of subsection (1) of this Section of the Ordinance no
contribution shall be payable-

      (a) by a self-employed person who has not paid a contribution prior to the date of which he attains
           pensionable age;

      (b) for any contribution period or part thereof following the date on which the self-employed
           person has attained pensionable age, unless he does not satisfy the contribution conditions for
           old age pension.

    (2) Notwithstanding the provisions of subsection (1) of this Section, no contribution shall be
payable for any contribution period or part thereof commencing on or following the date on which the
self employed person has attained pensionable age.12

12.       Amount of contributions of self employed persons

   The amount of contributions payable in respect of the employment of a self-employed person shall
be at the rate of 12% 11% 13 11,6% 14 of his insurable earnings. 15

   Contributions in respect of the employment of self-employed person are payable at the rates
payable in the Republic under Republican law.

13.       Time limit for the payment of contributions

   (1) No contributions in respect of the employment of an employed person shall be paid after the
expiration of six years from the end of the contribution period in which such contributions became
payable.

   (2) No contribution in respect of the employment of a self- employed person shall be paid after the
expiration of three years from the end of the contribution period in which such contributions became
payable.

14.       Termination of payment of contributions16

   Notwithstanding the provisions of the Ordinance, no contribution shall be paid by or in relation to
an insured person when he has attained the age of seventy.

14.       Pensionable age for certain insured persons

   Notwithstanding the provisions of Section 2 of this Ordinance, the pensionable age, for the
purposes of Sections 4 and 11 of this Ordinance, of an insured person who attained the age of sixty


12
   Subsection (2) deleted and new subsection (2) inserted by Ordinance 17/85
13
   Percentage amended by Ordinance 14/88
14
   Percentage amended by Ordinance 1/93
15
   Section 12 repealed and replaced by Ordinance 6/09
16
   Section 14 repealed and replaced by Ordinance 17/85


SBA/AG/2/EM/130                                                                              page - 7 - of 20
five years pensionable age 17 prior to the 4th November, 1985, is extended until the day on which he
will satisfy the contribution conditions for old age pension set out in the Republican Law but in no
case shall the said age be extended beyond the age of seventy years:

   Provided that an insured person may, at any time prior to the satisfaction of the said contribution
conditions, elect that in his case the pensionable age shall not be extended.

 14.       Pensionable age for certain insured persons 18

 (1) Notwithstanding the provisions of Section 2 of the Ordinance, pensionable age for the purposes
of Sections 4 and 11 hereof of an insured person who does not satisfy the contribution requirements
for old age pension by the age of sixty five or sixty three, as the case may be, shall be the first day on
which such insured person satisfies the said requirements but in no case shall this date be later than
the date of completion of the insured person’s sixty eighth year of age.

   (2) This Section shall not apply to a person who has completed pensionable age, as this has been
defined in Section 2 of this Ordinance before the 1st January 1993.

15.        Benefits to contributors

   Every employed and self-employed person or, in the case of death, his legal personal
representative, shall, provided there has been compliance with the obligations imposed by this
Ordinance and the Republican Law, in accordance with the circumstances at the time he becomes a
claimant, be entitled to the appropriate benefit due to him at that time as prescribed under the
provisions of the Republican Law.

16.        Decision of Chief Officer to be evidence for the purpose of proceedings

   (1) In any proceedings in a Judge’s Court in the Areas, a certificate under the hand of the Chief
Officer relating to-

      (a) whether any employment or any class of employment is or was insurable employment;

      (b) whether a person is or was an employed person;

      (c) whether a person is or was a self-employed person;

      (d) who is or was the employer of any employed person;

      (e) whether contributions are payable by or in respect of any person under the provisions of
           Section 4 or 12 of this Ordinance;

      (f) the earnings to be taken into account for the purposes of this Ordinance;

      (g) whether a contribution has been paid by or in respect of any person for any contribution period;

      (h) the correct date of birth of an insured person,

shall be conclusive 19evidence of the facts so stated.

      (2) For the purposes of this Section of the Ordinance “proceedings” shall include proceedings-


17
   Text deleted and new text inserted by Ordinance 4/90
18
   Section 14 repealed and replaced by Ordinance 1/93
19
   “Conclusive” deleted by Ordinance 23/04


SBA/AG/2/EM/130                                                                              page - 8 - of 20
      (a) in which any person is charged with an offence under the provisions of this Ordinance, or

      (b) involving any question as to the payment of any contributions under this Ordinance, or

      (c) for the recovery of any sums due to the Fund.

17.         Notice of accidents by insured persons

   (1) Every insured person who suffers personal injury by accident in respect of which benefit may
be payable under the Republican Law shall, by himself or through some other person acting on his
behalf, give notice of such accident as soon as practicable after the happening thereof.

   (2) Every such notice shall be given to the employer, or, if there is more than one employer, to one
of such employers or to any foreman or other official under whose supervision the insured person is
employed at the time of the accident or to any person designated for the purpose by the employer and
shall give the appropriate particulars.

18.         Power to make regulations

   The Administrator may make Regulations generally for the better carrying into effect of the
provisions of this Ordinance and, without prejudice to this generality, may by such Regulations
prescribe or regulate any matter required to be prescribed or regulated and in particular prescribe or
regulate the following:

      (a) the weekly rate below which earnings constitute negligible earnings;

      (b) the rate of basic insurable earnings and the ceiling maximum limit20 of the insurable earnings;

      (c) the amount of insurable earnings in relation to any category of employed persons;

      (d) the classification of self-employed persons by occupational category;

      (e) the minimum and maximum amount of21 insurable earnings of self-employed persons
          according to occupational categories;

      (f) the conditions and terms of option of insurable earnings by self-employed persons between the
          minimum and the maximum insurable earnings;

      (f) the conditions and terms of option of the amount of insurable earnings by self-employed
            persons when such earnings are lower that the minimum amount of insurable earnings of the
            respective occupational category, as well as the amount of insurable earnings between the
            minimum insurable earning of the respective occupational category and the maximum limit of
            insurable earnings;22

      (f)   the manner of calculation of the insurable earnings of self-employed persons from the
            minimum to the maximum limit of insurable earnings.23

      (g) the registration of insured persons and employers;

      (h) any matters incidental to the payment and collection of contributions including-


20
   Text deleted and new text inserted by Ordinance 5/85
21
   Text deleted and new text inserted by Ordinance 5/85
22
   Paragraph (f) deleted and new (f) inserted by Ordinance 5/85
23
   paragraph (f) deleted and new (f) inserted by Ordinance 6/87


SBA/AG/2/EM/130                                                                               page - 9 - of 20
          (i) the method and manner of calculating or estimating the insurable earnings of particular
              classes or categories of employed persons;

          (ii) the co-ordination thereof with the payment and collection of contributions under any other
              Ordinance;

          (iii) the time limit for the payment of contributions;

          (iv) the circumstances in which contributions paid without liability may be refunded;

          (v) the conditions for the refund of contributions paid by an insured person for any
              contribution year on insurable earnings above the annual ceiling of insurable earnings;

      (i) the payment of an additional charge in the event of delays in the payment of contributions
          within the time limits prescribed by this Ordinance;

      (j) for requiring a qualified medical practitioner attending on or called in to visit a patient, whom
          he believes to be suffering from a disease contracted in the course of his employment to send a
          notice to the Chief Officer containing such particulars as he may determine;

      (k) for the circumstances in which a person shall be deemed not to be gainfully occupied.

19.        Obligations of claimants for and beneficiaries in receipt of injury benefit or disablement
           benefit

   (1) Subject to the provisions of this Section of the Ordinance, every claimant for, and every
beneficiary in receipt of, injury benefit or disablement benefit under the Republican Law shall comply
with every direction given to him by the Chief Officer which requires him either –

      (a) to submit himself to a medical examination by a medical authority designated by the Chief
            Officer, for the purpose of determining the effect of the relevant accident or the treatment
            appropriate to the relevant injury or loss of faculty; or

      (b) to submit himself to such medical treatment for the said injury or loss of faculty as is
            considered appropriate in his case by the medical practitioner in charge of the case or by any
            medical authority to whose examination he has submitted himself in accordance with the
            provisions of the Republican Law; or

      (c) to attend any vocational training or industrial rehabilitation course at a specified place which, in
            the opinion of the Chief Officer, is appropriate in his case.

   (2) Every direction given to a claimant or beneficiary requiring him to submit himself to a medical
examination shall be given in writing.

    (3) Every claimant and every beneficiary who, in accordance with the foregoing provisions of this
Section of the Ordinance, is required to submit himself to a medical examination or to medical
treatment shall attend at every such time as he may be required.

   (4) Every beneficiary shall, as soon as may be practicable, notify the Chief Officer in writing of
any change of circumstances which he might reasonably be expected to know might affect the
continuance of his right to any benefit awarded to him under the Republican Law or to the receipt
thereof.

20.        Special provisions as to notice of accident in mines, factories, etc.




SBA/AG/2/EM/130                                                                                 page - 10 - of 20
   (1) Every manager as defined in subsection (2) of this Section of the Ordinance shall keep posted
up in some conspicuous place at or near every place of employment where it may be conveniently
read by the persons employed, a summary, as may from time to time be published by the manager, of
the requirements of this Ordinance with regard to the giving of notice of accidents and of the
requirements of the Republican Law with regard to the making of claims under that Law.

   (2) For the purposes of subsection (1) of this Section of the Ordinance the expression “manager”
means the person, company, association or partnership having charge of any mine, quarry, factory,
workshop or place of employment or owning the business thereof, and includes the manager, agent or
other person acting or apparently acting in the general management or control of any mine, quarry,
factory, workshop or place of employment.

21.     Representation of deceased persons and persons unable to act

    Where a person who has made a claim for benefit under the Republican Law or who is alleged to
be or to have been entitled to such benefit or to whom such benefit is payable, is unable to act or dies,
the Chief Officer may appoint such person as he may think fit to proceed with, or to make, a claim or
to receive payment of benefit on behalf of or as representative of the person.

22.     Benefit to be inalienable

   (1) Subject to the provisions of this Ordinance, every assignment of, or charge on, any benefit
payable under the Republican Law, and every agreement to assign or charge such benefit shall be void
and, on the bankruptcy of any person entitled to benefit, the benefit shall not pass to any trustee or
other person acting on behalf of his creditors.

   (2) No benefit payable under the Republican Law shall be liable to be forfeited under the Civil
Procedure Ordinance(c).

23.     Repayment of benefit improperly received

   (1) If it is found that any person, by reason of the non-disclosure or misrepresentation by him of a
material fact, (whether the non-disclosure or misrepresentation was or was not fraudulent) has
received any sum by way of benefit under the Republican Law while he was not entitled to such
benefit under that Law, he shall be liable to repay the sum so received by him.

   (2) Where any person is liable to repay any sum received by him by way of benefit under the
Republican Law, that sum may unless that person shows that he received it in good faith and without
knowledge that he was not entitled to it under the Republican Law, be recovered by the Chief Officer
on behalf of the Fund without prejudice to any other remedy under this Ordinance or any other
Ordinance or under the Republican Law.

24.     Contributions to be the property of the Fund

   All contributions payable under this Ordinance by insured persons or employers shall be the
property of the Fund.

25.     The Chief Officer may appoint inspectors

   (1) The Chief Officer may appoint inspectors for the purpose of carrying out the duties and
exercising the powers imposed and conferred upon him under this Ordinance.

   (2) Anything required or authorised under this Ordinance to be done by the Chief Officer may be
done by any inspector appointed under this Section of the Ordinance.




SBA/AG/2/EM/130                                                                             page - 11 - of 20
26.        Powers of inspectors

    (1) Any inspector appointed under the provisions of Section 25 of the Ordinance shall, for the
purposes of carrying into effect the provisions of this Ordinance, have power to do all or any of the
following things, namely-

      (a) to enter at all reasonable times any premises, or place, other than a private dwelling house,
          where he has reasonable grounds for supposing that any employed or self-employed persons
          are employed;

      (b) to make such examination and inquiry as may be necessary for ascertaining whether the
           provisions of this Ordinance are being or have been complied with in any such premises or
           place;

      (c) to examine, either alone or in the presence of any other person, as he may think fit, in
            connection with any matters under this Ordinance or the Republican Law on which he may
            reasonably require information, every person whom he finds in any premises or place, or
            whom he has reasonable cause to believe to be or to have been an employed person or a self-
            employed person, and to require every such person to be so examined.

      (d) to exercise such other powers as may be necessary for carrying this Ordinance into effect.

   (2) The occupier of any such premises or place, and any other person who is or has been
employing any employed person, and the servants and agents of any such occupier or person, and any
employed or self-employed person shall furnish to an inspector all information and shall produce for
inspection all such documents as an inspector may reasonably require.

      (3) If any person –

      (a) wilfully delays or obstructs an inspector in the exercise of any power under this Section of the
           Ordinance; or

      (b) refuses or neglects to answer any question or to furnish any information or to produce any
            document when required to do so under this Section of the Ordinance; or

      (c) conceals or tires to conceal any person or prevents or tries to prevent any person from
           appearing before or being examined by an inspector,

shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding one hundred
pounds: imprisonment for one year or a fine of € 1,700 or both.24

    Provided that no one shall be required under this Section of the Ordinance to answer any questions
or to give any evidence tending to incriminate himself.

   (4) Every inspector shall be furnished with a certificate of his appointment, and on applying for
admission to any premises or place for the purposes of this Ordinance shall, if so required, produce
the said certificate.

27.        Reciprocal agreements

   For the purpose of giving effect to any agreement between the Government of the Republic with
the Government of any other country including Her Majesty’s Government in the United Kingdom,
being an agreement which provides for reciprocity in matters of social insurance or social security, the
Administrator may, by order, apply this Ordinance to cases affected by the agreement and, for the
24
     Penalty amended by Ordinance 6/09


SBA/AG/2/EM/130                                                                               page - 12 - of 20
purpose of such application to cases affected by an agreement, any reference to legislation of the
Republic or of “Cyprus” in any such agreement shall be deemed to include a reference to this
Ordinance.

28.        Offences and penalties

   (1) If any employer or self-employed person, fails or neglects to pay any contribution or additional
charge which he is liable under this Ordinance to pay, he shall for each offence be liable, on
conviction, to a fine not exceeding three hundred pounds or on a second or subsequent conviction to a
fine not exceeding three hundred pounds or to imprisonment not exceeding six months, or to both
such fine and imprisonment.25

   (1) An employer or self-employed person who fails to pay a contribution or additional charge for
which he is liable under this Ordinance commits an offence and is liable to imprisonment for one year
or a fine of €3,400 or both, and for second or subsequent offences is liable to imprisonment for two
years or a fine of €5,000 or both.

    (2) If any case where any employer or self-employed person has been convicted of the offence of
failing or neglecting to pay a contribution or additional charge, he shall, in addition to any fine, be
liable to pay to the Fund a sum equal to the amount which he has failed or neglected to pay of
contributions or any additional sum which he has failed or neglected to pay and the additional charge
in the event of failure or neglect to pay any contributions due shall be calculated as at the date of
conviction,26 together with such amount not exceeding twenty-five per centum or on a second or
subsequent conviction not exceeding fifty per centum of the unpaid contribution, as the Judge’s Court
may order.

   (3) On any conviction for failure or neglect to pay any contributions, if notice of intention to do so
has been served with the summons or warrant, evidence may be given of the failure or neglect of the
employer to pay other contributions in respect of the same person or any other person employed by
such employer during any period before the date of the offence, and on proof of such failure or
neglect the employer shall be liable to pay to the Fund a sum equal to the total of all the contributions
which he is so proved to have failed or neglected to pay.

  (4) Any sum ordered by the Judge’s Court to be paid to the Fund under this Section of the
Ordinance shall be recoverable as a fine.

   (5) Any sum paid by an employer or self-employed person under the foregoing provisions of this
Section shall be treated as a payment in satisfaction of the unpaid contributions, and any of those
contributions which are payable by any employed person shall not be recoverable from that employed
person.

   (6) If any person for the purpose of obtaining any benefit or other payment under the Republican
Law and Regulations made thereunder, whether for himself or for some other person, or for any other
purpose connected with this Ordinance or the Republican Law-

      (i) knowingly or recklessly makes any false statement or false representation; or

      (ii) produces or furnishes, or causes or knowingly allows to be produced or furnished, any
            documents or information which he knows to be false in a material particular,




25
     Subsection (1) repealed and replaced by Ordinance 6/09
26
     Text deleted and new text added by Ordinance 5/83


SBA/AG/2/EM/130                                                                             page - 13 - of 20
shall be liable, on conviction, to a fine not exceeding one thousand pounds €8,50027 or to
imprisonment for a term not exceeding two years three years, or to both such fine and imprisonment.

   (7) Where any person is convicted under subsection (6) of this Section of the Ordinance, the
Judge’s Court, in addition to any other penalty, may order him to refund to the Fund any benefit or
other payment unlawfully collected.

   (8) If any person is guilty of any contravention of, or non-compliance with, any of the
requirements of this Ordinance in respect of which no special penalty is provided, he shall for each
offence be liable, on conviction, to a fine not exceeding one hundred pounds imprisonment for one
year or a fine of € 1,700 or both.28

    (9) Where an offence under this Ordinance and any Regulations made thereunder committed by a
body corporate is proved to have been committed with the consent or connivance of, or to be
attributable to any neglect on the part of, any director, manager, secretary or other similar officer of
the body corporate or any person who has purporting to act in any such capacity, he, as well as the
body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished
accordingly.

   (10) Nothing in this Section of the Ordinance shall prevent the Chief Officer from recovering, on
behalf of the Fund, by means of civil proceedings any sums due to the Fund.

29.        Prosecutions

   Proceedings for any offence under this Ordinance shall not be instituted except by or with the
consent of the Legal Adviser.

30.        Civil proceedings

   All sums due to the Fund shall be recoverable as debts due to the Administrator and, without
prejudice to any other remedy, may be recovered summarily as a civil debt by the Chief Officer on
behalf of the Administrator but, when recovered, shall be remitted by the Chief Officer to the Fund
through the appropriate authorities of the Republic.

31.        Proceedings against employer for benefit lost by default of the employer

      (1) Where an employer has failed or neglected –

      (a) to pay any contributions which under the Ordinance and Regulations made thereunder he is
           liable to pay in respect of an employed person in his employment; or

      (b) to comply, in relation to any such person, with the requirements of the Ordinance and
            Regulations made thereunder relating to the payment and collection of contributions,

and by reason thereof that person or his wife or widow has lost, in a whole or in part, any benefit to
which he or she would have been entitled under the Republican Law, that person or his wife or
widow, as the case may be, shall be entitled to recover by civil action from the employer as a civil
debt a sum equal to the amount of the benefit so lost, or, if that benefit is a pension of a widow, old
age pension or invalidity pension, a sum assessed by the Chief Officer to be the equivalent of the
amount of pension which would otherwise have been paid to the beneficiary.




27
     Fine and imprisonment amended by Ordinance 6/09
28
     Fine and imprisonment amended by Ordinance 6/09


SBA/AG/2/EM/130                                                                             page - 14 - of 20
   (2) Proceedings may be taken under this Section of the Ordinance notwithstanding that
proceedings have been taken under any other Section of the Ordinance in respect of the same failure
or neglect.

   (3) Proceedings under this Section may, notwithstanding the provisions of any Ordinance to the
contrary, be brought at any time within one year after the date on which the employed person or his
wife or widow, but for the failure or neglect of the employer, would have become entitled to the
benefit which he or she has lost under the Republican Law.

32.        Fines, etc., to be paid into the fund

   All fines, fees, penalties and costs recovered under this Ordinance shall be paid to the Chief
Officer for remission to the Fund through the appropriate authorities of the Republic unless otherwise
provided in this Ordinance.

33.        Priority of contributions in winding up and bankruptcy

      There shall be included amongst the debts which-

      (a) under the provisions of Section 38 of the Bankruptcy Ordinance(d), are in the distribution of
           the property or assets of a bankrupt, to be paid in priority to all other debts; and

      (b) under section 300 of the Companies Ordinance(e), are in the winding-up of a company to be
           paid in priority to all other debts,

the amount due in respect of any contributions or liability for contributions accrued before the
following dates, that is to say –

      (a) in the first case, the date of the receiving order; and

      (b) in the second case, the date of commencement of the winding-up of the company.

33A.       Furnishing of information by Commissioner of Income Tax29

   Notwithstanding the provisions of any other Ordinance the Commissioner of Income Tax shall, on
the application of the Chief Officer, furnish all necessary particulars and information in relation to
the earnings of any person, which he holds in the exercise of his powers and duties under the
provisions of the Income Tax Ordinance(f).

34.        Reduction of the rate of contribution to provident funds

   (1) As from the appointed day the rate of contribution to provident funds in operation at that day,
shall be reduced by six percentage points, three points from the rate of contribution of the employer
and three points from the rate of contribution of the employed person:

   Provided that the said reduction shall apply to the earnings of the employed person on which the
contribution to the provident fund is calculated and to the extent that such earnings do not exceed the
ceiling of insurable earnings.

    (2) Where the employer supplements the accumulated amount of the employed person to the
provident fund up to a certain amount, in accordance with a scheme, collective agreement, agreement
or otherwise, such amount shall be reduced by the amount which would otherwise have been paid to
the provident fund, had such reduction not taken place, plus the interest on such amount equal to the
interest which would have been earned, had such amount been paid to the provident fund:
29
     inserted by Ordinance 6/87.


SBA/AG/2/EM/130                                                                            page - 15 - of 20
   Provided that where the cost of living allowance is not taken into account for the purpose of
calculating contributions to a provident fund, the amount referred to in subsection (1) of this Section
of the Ordinance shall be reduced by the amount which would otherwise have been paid by the
employed person to the provident fund, had the said reduction not taken place and by an amount equal
to three per centum on the insurable earnings of the employed persons on which the employer has
paid contributions under this Ordinance plus the interest on such amounts equal to the interest which
would have been earned, had these amounts been paid to the provident fund.
30
   Provided further that in the case of a person to whom Council Regulation No. 1408/71 on the
application of social security schemes to employed person and their families moving within the
Community applies, this subsection shall apply for every period during which he is absent from
Cyprus or from another member State:

   Provided further that where a person referred to in the second proviso is absent from Cyprus or
from another member State, for treatment for an illness or bodily injury which commenced before his
departure from Cyprus or another member State, the non-payment of benefits for sickness or bodily
injury for the period of his absence shall, with the approval of the Director, be made good following
his return to Cyprus or to another member State.

35.        Reduction of payment from pension scheme

   (1) The amount of any periodical payment made to any employed person from a pension scheme
operating on account of any employer for periods of employment on or after the appointed day shall
be reduced by the amount of the corresponding supplementary benefit payable to or in respect of the
employed person under the Republican Law in relation to the insurable earnings on which
contributions were paid in respect of the said periods.

   (2) Where a pension scheme operates on a contributory basis, the contributions to such fund by
both the employer and employee shall be equally reduced, as from the appointed day, having regard to
the reduction referred to in subsection (1) of this Section of the Ordinance.

   (3) As from the appointed day, the contribution by any pensionable officer of the Administration
towards the pension of a widow and children under any legislation or scheme in force for the payment
of such pensions shall be reduced by one per centum of his pensionable emoluments, no regard being
had for any pensionable emoluments in excess of the ceiling of insurable earnings.

36.        Provisions of Sections 34 and 35 not to apply concurrently

   Where any employed person comes at the same time both under a provident fund and a pension
scheme, either the provisions of Sections 34 or 35 of the Ordinance shall apply to him:

   Provided that the provisions of both the said Sections may apply to the extent however that the
resulting total reduction shall not exceed the reduction which would have resulted had the provisions
of only one section been applied.

36A.       Delegation of functions 31

   (1) The duties imposed and powers conferred on the Chief Officer by sections 16, 19, 21, and 23
are general delegated functions for the purposes of the Delegation of Functions to the Republic
Ordinance 2007(g),




30
     Following provisos inserted by Ordinance 33/03
31
     Section 36A inserted by Ordinance 6/09


SBA/AG/2/EM/130                                                                           page - 16 - of 20
   (2) The duties imposed and powers conferred on Inspectors by section 26 are general delegated
functions for the purposes of the Delegation of Functions to the Republic Ordinance 2007, and

   (3) The duties imposed and powers conferred on the Chief Officer by section 25 are not general
delegated functions for the purposes of the Delegation of Functions to the Republic Ordinance 2007.

37.     Repeals and transitional provisions

   (1) Subject to Section 38 of this Ordinance the Social Insurance (Facilitation of Republican Social
Insurance Scheme) Ordinance, 1972(h) shall be repealed.

   (2) Subject to the provisions of this Section of the Ordinance, any former beneficiary or any former
contributor shall be deemed to be a beneficiary or any former contributor under this Ordinance and the
Republican Law and as from the date of coming into operation of this Ordinance his rights and
obligations shall be governed by this Ordinance and the Republican Law.




SBA/AG/2/EM/130                                                                           page - 17 - of 20
                                         FIRST SCHEDULE
                                            (Section 3(a))

                               EMPLOYED PERSONS - INSURABLE
                                AND EXCEPTED EMPLOYMENTS.

                                                PART I

                                   INSURABLE EMPLOYMENTS.

1. Employment in the Areas under a contract of service or apprenticeship, or under such
circumstances from which the existence of a relation of employer and employee may be inferred,
including employment by or under the Crown or the Republic.

2. Employment in a prison established in the Areas where the person employed is undergoing
imprisonment.
                                              PART II

                                   EXCEPTED EMPLOYMENTS.

1. Employment as a member of any of the naval, military and air forces of the Government of a
country other than the Republic of Cyprus.

2. Employment in the civil or diplomatic service of the Government of a country other than the
Republic of Cyprus where the persons employed were engaged outside the Island of Cyprus.

3. Employment in the service of the husband or wife of the person employed.

4. Employment of a person who is not ordinarily resident in the Island of Cyprus if the employer of
that person is not ordinarily resident in the Island of Cyprus and has no place of business there.

5. Employment as secretary or clerk of a society, club, philanthropic institution, schoo1 or other
similar body or institution, where personal service is ordinarily required only occasionally or outside
the ordinary hours of work.

6. Employment involving part-time service only, as a caretaker or key-keeper of an ancient
monument.

7. Employment as a caretaker in respect of which the person employed receives no wages or other
money payment.

8. Employment as Chairman of a Local Authority.

9. Employment in respect of which no wages or other remuneration is paid, where the person
employed is the father, mother, grandfather or grandmother of the employer.

10. Employment in agriculture in the service of the father or mother of the person employed.




SBA/AG/2/EM/130                                                                             page - 18 - of 20
                                            SECOND SCHEDULE
                                               (Section 3(b))

                                    SELF-EMPLOYED PERSONS - INSURABLE
                                     AND EXCEPTED EMPLOYMENTS

                                                     PART I

                                        INSURABLE EMPLOYMENT

   Any employment in the Areas in which the person employed is gainfully occupied and is
ordinarily resident in the Island of Cyprus, if that employment is not insurable under Part I of the First
Schedule.

                                                    PART II

                                         EXCEPTED EMPLOYMENT

      Employment in agriculture where the person employed is –

           (a) of the female sex living with her husband or parents; or

           (b) of the male sex under the age of sixteen living with his parents.

           (a) of the female sex living with her husband;

           (b) of the female sex under the age of thirty five living with her parents;

           (c) of the male sex under the age of sixteen living with his parents.32

   Agricultural occupation where the person so occupied is under the age of sixteen years and lives
with his parents.33




32
     Paragraphs (a) and (b) deleted and replaced by Ordinance 24/87
33
     Part II deleted and replaced by Ordinance 27/02


SBA/AG/2/EM/130                                                                              page - 19 - of 20
(a) Law No. 8/67 as amended
(b) Law No. 41/80 as amended
(c) Cap 6 (Laws of Cyprus) as amended
(d) Cap 5 (Laws of Cyprus) as amended
(e) Cap 113 (Laws of Cyprus) as amended
(f) Cap 323 (Laws of Cyprus) as amended
(g) Ordinance 17/07
(h) Ordinance 17/72 as amended




SBA/AG/2/EM/130                           page - 20 - of 20

				
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