New measures for Cyprus Social Insurance Fund

The Ministry of Labour and Social Insurance is recommending new measures aimed at supporting the viability of the Social Insurance Fund (SIF) up to 2050. Some of the suggestions are as follows:
Increase in the contribution of employers, employees and the State via a scaled increase of 1.3% in every five years in seven instalments (commencing in January 2009). The proportion of the contribution remains unchanged (i.e. 38% for employees, 38% for employers and 24% for the State);
Increase in Central Bank’s deposit rate for the Reserve Fund (SIF) from 3.5% to 4.75% and the consequent increase in the revenues and yield of the Fund;
Decrease in the Special Contribution for Defence on interest received by the SIF from 10% to 3%.