Cyprus Parliament exempts shipping companies from nearly €10m in payments

The Parliament of Cyprus has approved a bill by a majority vote that exempts shipping companies from paying contributions to the Social Solidarity Fund for foreign seafarers.

Under the new law, the exemption applies retroactively from January 1, 2010. This concerns seafarers who work for Cypriot companies outside the country but pay social insurance contributions in the Republic of Cyprus.

According to the Parliamentary Labour Committee, the total amount of contributions to this fund since 2010 is approximately €9.5 million, with annual payments ranging from €500,000 to €800,000.

Thus, the passing of the law effectively relieves shipping companies of nearly €10 million in payments and removes their future annual obligations.

The law was supported by the DISY, DIKO, ELAM, and DIPA parties. However, several government bodies opposed the initiative.

The opposition party AKEL criticized the parliament's decision, stating that during a period of economic pressure on the population, the state is effectively "gifting millions" to large corporations.