Employer Cyprus Social insurance: 7.8% of covered payroll. The minimum weekly earnings used to calculate contribu- Exchange rate: US$1.00 = 0.83 euro (€). tions are €174.38. The maximum weekly earnings used to calculate contribu- tions are €1,046. Old Age, Disability, and Survivors The employer’s contributions also finance cash sickness and maternity, work injury, and unemployment benefits. Regulatory Framework Social assistance: None. First law: 1957. Government Current laws: 1995 (social pension) and 2010 (social insurance). Social insurance: 4.6% of covered payroll for insured persons, self-employed persons, and voluntarily insured Type of program: Social insurance and social assistance persons working abroad (4.1% if working in Cyprus). system. The minimum weekly earnings used to calculate contribu- tions are €174.38. Coverage The maximum weekly earnings used to calculate contribu- Social insurance: Employed and self-employed persons. tions are €1,046. Voluntary coverage for formerly covered persons and citi- The government’s contributions also finance cash sickness zens working abroad for Cypriot employers. and maternity, work injury, and unemployment benefits. Exclusions: Family labor. Social assistance: The total cost is financed from general Social assistance (social pension): Residents of Cyprus. revenues.
Source of Funds Qualifying Conditions Insured person Old-age pension (social insurance): Age 65 (age 63 for miners) with at least 15 years of coverage, paid contribu- Social insurance: 7.8% of covered earnings; for the vol- tions on earnings of at least 780 times the weekly basic untarily insured, 13% of declared income in Cyprus and covered earnings, and paid or credited contributions in at 15.6% of covered earnings abroad. least 30% of the reference period. The minimum weekly earnings used to calculate contribu- The reference period is the years since October 5, 1964, tions are €174.38. (since January 7, 1957, if it results in a higher benefit) or The maximum weekly earnings used to calculate contribu- the year in which the insured reached age 16, whichever is tions are €1,046. later, up to the normal retirement age. The insured’s contributions also finance cash sickness and Weekly basic covered earnings are €174.38. maternity, work injury, and unemployment benefits. Early pension: Age 63 with paid or credited contributions Social assistance: None. in at least 70% of the reference period. (Miners aged 58 or older with at least three years of employment may receive a Self-employed person pension one month earlier for every five months of mining Social insurance: 14.6% of covered income based on work if they retire from that occupation.) occupation. The reference period is the years since October 5, 1964, The minimum weekly earnings used to calculate con- (since January 7, 1957, if it results in a higher benefit) or tributions range from €261.57 to €775.99 depending on the year in which the insured reached age 16, whichever is occupation. later, up to the pensionable age. The maximum weekly earnings used to calculate contribu- Dependent’s supplement: Paid for a dependent female tions are €1,046. spouse not receiving any other pension; a dependent male The self-employed person’s contributions also finance cash spouse with a disability and not receiving any other pen- sickness and maternity benefits. sion; children up to age 15 (age 23 for unmarried women if a full-time student; age 25 for unmarried men who Social assistance: None. are studying full-time or in military service; no limit if
SSPTW: Europe, 2018 ♦ 77 Cyprus disabled); a dependent parent; or a dependent sibling who is Spouse’s pension (social insurance): Paid to a depen- younger than the insured. dent widow or a dependent widower with a disability if The old-age pension is payable abroad. the deceased received or was entitled to receive an old-age pension or was insured for at least three years, had paid Old-age settlement (social insurance): Age 68 and contributions on earnings of at least 156 times the weekly does not qualify for the old-age pension. Must have paid basic covered earnings, and had paid or credited contribu- contributions for at least six years on earnings of at least tions in at least 25% of the reference period. 312 times the weekly basic covered earnings. The reference period is the years since October 5, 1964, Weekly basic covered earnings are €174.38. (since January 7, 1957, if it results in a higher benefit) or the The old-age settlement is payable abroad. year in which the deceased reached age 16, whichever is later, up to the week before the death occurred. Social pension (social assistance, income tested): Age 65 and a resident of Cyprus for at least 20 years after If the death is caused by an accident, the same qualifying age 40 or 35 years after age 18. conditions apply as for cash sickness benefit (see qualifying conditions under Sickness and Maternity). Disability pension (social insurance): Paid for a total Weekly basic covered earnings are €174.38. (100%) loss of earning capacity. The insured must have at least three years of coverage, paid contributions on earn- The spouse’s pension is payable abroad. ings of at least 156 times the weekly basic covered earn- Dependent’s supplement: Paid for children up to age 15 ings, and paid or credited contributions in at least 25% of (age 23 for unmarried women who are studying full-time; the reference period. Must have either paid or credited con- age 25 for unmarried men who are studying full-time or tributions in the year before the disability began or average in military service; no limit if disabled); or for dependent covered earnings in the last two years of at least 20 times parents or a dependent sibling younger than the insured the weekly basic covered earnings. person.
The reference period is the years since October 5, 1964, Orphan’s pension (social insurance): The deceased was (since January 7, 1957, if it results in a higher benefit) or insured and was supporting a child up to age 15 (age 25 the year in which the insured reached age 16, whichever is (men) or age 23 (women) if a full-time student or in military later, up to the week before the disability began. service at the time of death; no limit if disabled); for full If the disability is caused by an accident, the same qualify- orphans, one of the parents must have been insured. ing conditions apply as for the cash sickness benefit (see Termination settlement: Paid when an orphan is no longer Sickness and Maternity). eligible for an orphan’s pension due to age restrictions. Weekly basic covered earnings are €174.38. The orphan’s pension is payable abroad. Partial disability: Paid for a loss of earning capacity of at Spouse’s settlement (social insurance): Paid to a depen- least 50% but less than 100%. The insured must have at dent widow or a dependent widower with a disability if the least three years of coverage, paid contributions on earn- deceased did not meet the contribution requirements for ings of at least 156 times the weekly basic covered earn- a spouse’s pension but had paid contributions on earnings ings, and paid or credited contributions in at least 25% of of at least 156 times the weekly basic covered earnings. If the reference period. Must have either paid or credited con- the deceased received or was entitled to receive an old-age tributions in the year before the disability began or average pension, the qualifying conditions are the same as for the covered earnings in the last two years of at least 20 times old-age settlement. The widow(er) may not receive a social the weekly basic covered earnings. pension and a spouse’s settlement at the same time. The reference period is the years since October 5, 1964, The spouse’s settlement is payable abroad. (since January 7, 1957, if it results in a higher benefit) or the year in which the insured reached age 16, whichever is Weekly basic covered earnings are €174.38. later, up to the week before the disability began. Missing person’s allowance (social insurance): Paid to Dependent’s supplement: Paid for a dependent female a dependent if the whereabouts of the insured person are spouse not receiving any other pension; a dependent male unknown and he or she is presumed dead. spouse with a disability and not receiving any other pen- The missing person’s allowance is payable abroad. sion; children up to age 15 (age 23 for unmarried women who are studying full-time; age 25 for unmarried men who Funeral grant (social insurance): Paid if the deceased was are studying full-time or in military service; no limit if receiving an old age, disability, spouse’s, or orphan’s pen- disabled); a dependent parent; or a dependent sibling who is sion, or a missing person’s allowance; died as a result of an younger than the insured. occupational accident or disease; or was insured for at least 26 weeks with paid contributions on covered earnings of at The disability pension is payable abroad. least 26 times the weekly basic covered earnings, and paid or credited contributions in the previous year on earnings
78 ♦ SSPTW: Europe, 2018 Cyprus of at least 20 times the weekly basic covered earnings. Also earning capacity of 66.7% to 75%; 60% for a loss of earning paid when an insured person’s dependent dies. capacity of 50% to 66.6%. The weekly basic covered earnings are €174.38. The annual basic covered earnings are €9,067.38; the The funeral grant is payable abroad. weekly basic covered earnings are €174.38. Basic covered earnings are adjusted once a year based on Old-Age Benefits changes in wages. Earnings for the supplementary pension are adjusted annually. Old-age pension (social insurance): The pension consists of a basic pension and a supplementary pension. The full The maximum weekly covered earnings are €1,046. basic pension is 60% of the insured’s annual average basic Dependent’s supplement: The basic pension is increased to covered earnings, divided by 52. The supplementary pen- 80% of the insured’s annual average basic covered earnings sion is 1.5% of the insured’s earnings above the weekly for the first dependent, 90% for the second, and 100% for basic covered earnings. the third; for a beneficiary with no dependent spouse, the Early pension: The pension is reduced by 0.5% for every basic pension is increased by 10% for each child, up to two month it is claimed before age 65. children. The annual basic covered earnings are €9,067.38; the Schedule of payments: 13 payments (one every four weeks) weekly basic covered earnings are €174.38. a year. Basic covered earnings are adjusted once a year based on Benefit adjustment: Benefits are adjusted in January and changes in wages. Earnings for the supplementary pension July each year based on changes in wages and prices. are adjusted annually. The maximum weekly covered earnings are €1,046. Survivor Benefits The minimum pension is 85% of the basic pension. Spouse’s pension (social insurance): The pension con- sists of a basic pension and a supplementary pension. The Dependent’s supplement: The basic pension is increased to basic pension is 60% of the insured’s annual average basic 80% of the insured’s annual average basic covered earnings covered earnings, divided by 52. The supplementary pen- for the first dependent, 90% for the second, and 100% for sion is 60% of the supplementary old-age or disability pen- the third; for a beneficiary with no dependent spouse, the sion (1.5% of the insured’s earnings above the weekly basic basic pension is increased by 10% for each child, up to two covered earnings) the deceased received or was entitled to children. receive. Schedule of payments: 13 payments (one every four weeks) The annual basic covered earnings are €9,067.38; the a year. weekly basic covered earnings are €174.38. Old-age settlement (social insurance): A lump sum of Basic covered earnings are adjusted once a year based on 15% of the total paid or credited contributions is paid. changes in wages. Social pension (social assistance, income tested): The maximum weekly covered earnings are €1,046. €338.99 a month is paid. If receiving another pension or a Dependent’s supplement: The basic pension is increased to similar payment less than the social pension, the difference 80% of the insured’s annual average basic covered earnings between income from other sources and the social pension for the first dependent, 90% for the second, and 100% for is paid. the third. Income test: The social pension is reduced by the amount of Remarriage settlement: The spouse’s pension ceases upon any other benefits the insured receives. remarriage and a lump sum of one year of the pension is Benefit adjustment: Benefits are adjusted in January and paid. July each year based on changes in wages and prices. A person may receive a spouse’s pension and an old-age or disability pension (including the supplementary pension) at Permanent Disability Benefits the same time, up to a maximum that varies depending on Disability pension (social insurance): The pension the insured’s covered earnings. consists of a basic pension and a supplementary pension. Schedule of payments: 13 payments (one every four weeks) The basic pension is 60% of the insured’s annual average a year. basic covered earnings, divided by 52. The supplementary pension is 1.5% of the insured’s earnings above the weekly Orphan’s pension (social insurance): 20% of the basic covered earnings. The period from the onset of the deceased’s basic covered earnings is paid for each child, disability to age 63 is credited. up to three children; 40% for full orphans plus 50% of the supplementary spouse’s pension for one orphan or 100% for Partial disability: 85% of the full pension is paid for a two or more eligible orphans. loss of earning capacity of 76% to 99%; 75% for a loss of
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Termination settlement: A lump sum of one year of the pen- Voluntary coverage for citizens working abroad for Cypriot sion is paid. employers and persons aged 63 to 65 who are not entitled to The weekly basic covered earnings are €174.38. an old-age pension. Basic covered earnings are adjusted once a year based on Exclusions: Family labor. changes in wages. Medical benefits: Certain categories of persons residing in The maximum weekly covered earnings are €1,046. Cyprus, including civil servants, military and police per- sonnel, low-income individuals and families, and persons Schedule of payments: 13 payments (one every four weeks) diagnosed with certain chronic diseases. a year. Spouse’s settlement (social insurance): A lump sum of Source of Funds 15% of the deceased’s basic covered earnings plus 9% of See source of funds under Old Age, Dis- earnings exceeding basic covered earnings is paid. Insured person: ability, and Survivors. The weekly basic covered earnings are €174.38. Self-employed person: See source of funds under Old The maximum weekly covered earnings are €1,046. Age, Disability, and Survivors. The Missing person’s allowance (social insurance): Employer: See source of funds under Old Age, Disability, allowance is 60% of the insured’s annual average basic cov- and Survivors. ered earnings, divided by 52, plus 60% of the supplemen- tary old-age or disability pension (1.5% of covered earnings Government: See source of funds under Old Age, Disabil- exceeding weekly basic covered earnings) the deceased ity, and Survivors. The total cost of medical benefits. received or was entitled to receive. The annual basic covered earnings are €9,067.38; the Qualifying Conditions weekly basic covered earnings are €174.38. Cash sickness benefit: Must have at least 26 weeks of Basic covered earnings are adjusted once a year based on coverage, paid contributions on earnings of at least 26 times changes in wages. the weekly basic covered earnings, and paid or credited contributions on earnings of at least 20 times the weekly The maximum weekly covered earnings are €1,046. basic covered earnings in the last year. After benefits have A person receiving a missing person’s allowance may also been paid for one year, the insured may qualify for an receive an old-age or disability pension (basic and supple- additional benefit after 13 more weeks of work and paid mentary) up to a maximum, according to covered earnings. contributions on earnings of at least 26 times the weekly basic covered earnings. Funeral grant (social insurance): A lump sum of €507.81 is paid when the insured or a pensioner dies; €253.91 when Dependent’s supplement: Paid for a dependent spouse who a dependent dies. is not working or receiving any benefit from the Social Insurance Fund; and for children up to age 15 (age 23 for Benefit adjustment: Benefits are adjusted in January and unmarried women who are studying full-time; age 25 for July each year based on changes in wages and prices. unmarried men who are studying full-time or in military service; no limit if disabled). Administrative Organization Social Insurance Services of the Ministry of Labor, Wel- Cash maternity benefit: Must have paid contributions fare, and Social Insurance (http://www.mlsi.gov.cy/sid/), on earnings of at least 26 times the weekly basic covered directed by a tripartite advisory Social Insurance Board and earnings, and paid or credited contributions on earnings of the Director of Social Insurance Services, collects contribu- at least 20 times the weekly basic covered earnings in the tions and administers the program. last year. Dependent’s supplement: Paid to a spouse who is not Sickness and Maternity working or receiving any benefit from the Social Insurance Fund; and for children up to age 15 (age 23 for unmarried Regulatory Framework women who are studying full-time; age 25 for unmarried men who are studying full-time or in military service; no First law: 1957. limit if disabled). Current law: 2010 (social insurance). Type of program: Social insurance system.
Coverage Cash benefits: Employed and self-employed persons.
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Cash paternity benefit: Must have paid contributions The maximum weekly covered earnings are €1,046. on earnings of at least 26 times the weekly basic covered Dependent’s supplement: The basic benefit is increased to earnings, and paid or credited contributions on earnings of 80% of average basic covered earnings for the first depen- at least 20 times the weekly basic covered earnings in the dent, 90% for the second, and 100% for the third. last year. The insured must also be married to the child’s mother, and not receive a full salary. Paternity benefit: 100% of the insured’s annual basic covered earnings in the last contribution year, divided by Cash maternity grant: The insured or the insured’s hus- 52, is paid. The benefit is paid for two consecutive weeks band must have at least 26 weeks of coverage, paid contri- and must be taken in the first four months after the date of butions on earnings of at least 26 times the weekly basic childbirth. covered earnings, and paid or credited contributions on earnings of at least 20 times the weekly basic covered earn- The annual basic covered earnings are €9,067.38; the ings in the last year. The grant is also paid to the nonwork- weekly basic covered earnings are €174.38. ing wife of an insured man. Basic covered earnings are adjusted once a year based on changes in wages. Medical benefits: Residents of Cyprus. The maximum weekly covered earnings are €1,046.
Sickness and Maternity Benefits Maternity grant: A lump sum of €544.08 is paid. Sickness benefit: The benefit consists of a basic benefit and a supplementary benefit. The basic benefit is 60% of the Workers’ Medical Benefits insured’s annual basic covered earnings in the last contribu- Medical services are provided directly to patients in gov- tion year, divided by 52. The supplement is 50% of the aver- ernment hospitals and clinics. Benefits include medical age weekly covered earnings exceeding the weekly basic treatment, hospitalization, maternity care, and medicine. covered earnings in the last contribution year. The benefit is Benefits are free for active and retired civil servants, paid after a three-day waiting period (nine days for self- military and police personnel, recipients of social assis- employed persons) for up to 156 days; may be extended for tance and their dependents, unmarried persons with annual an additional 156 days under certain conditions. income up to €15,400 (2017), families with annual income The annual basic covered earnings are €9,067.38; the up to €30,750 (2017) plus €1,700 (2017) for each dependent weekly basic covered earnings are €174.38. child (no income limit for families with four or more chil- Basic covered earnings are adjusted once a year based on dren), and persons diagnosed with certain chronic diseases. changes in wages. Cost sharing: Copayments are required for unmarried The maximum weekly covered earnings are €1,046. persons with annual income from €15,400.01 (2017) to €20,503.22 and for families with total annual income from Dependent’s supplement: The basic benefit is increased to €30,750.01 (2017) to €37,589.23 plus €1,700 (2017) for each 80% of average basic covered earnings for the first depen- dependent child. dent, 90% for the second, and 100% for the third; for a beneficiary with no dependent spouse, the basic pension is increased by 10% for each child, up to two children. Dependents’ Medical Benefits Medical benefits for dependents are the same as those for Maternity benefit: The benefit consists of a basic benefit the insured. and a supplementary benefit. The basic benefit is 72% of the insured’s annual basic covered earnings in the last contribu- Cost sharing: Copayments are required for families with tion year, divided by 52. The supplement is 72% of the aver- total annual income from €30,750.01 to €37,589.23 plus age weekly covered earnings exceeding the weekly basic €1,700 for each dependent child (2017). covered earnings in the last contribution year. The benefit is paid for 18 consecutive weeks beginning two to nine Administrative Organization weeks before the expected date of childbirth (22 weeks for Social Insurance Services of the Ministry of Labor, Wel- multiple births, may be extended for premature births). fare, and Social Insurance (http://www.mlsi.gov.cy/sid/), The benefit is paid for 16 weeks to a stepmother of a child directed by a tripartite advisory Social Insurance Board and adopted before age 12. the Director of Social Insurance Services, collects contribu- tions and administers the program. The annual basic covered earnings are €9,067.38; the weekly basic covered earnings are €174.38. Ministry of Health (https://www.moh.gov.cy/) provides medical services through government hospitals. Basic covered earnings are adjusted once a year based on changes in wages.
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Work Injury Permanent Disability Benefits Permanent disability pension: The pension consists of a Regulatory Framework basic pension and a supplementary pension. If the insured First law: 1957. is assessed with a total (100%) loss of earning capacity, the full basic pension is 60% of the insured’s weekly basic cov- 2010 (social insurance). Current law: ered earnings. The supplementary pension is 60% of annual Type of program: Social insurance system. average covered earnings exceeding basic covered earnings in the last two contribution years, divided by 52. Coverage Constant-attendance allowance: 55% of the basic full pen- Employed persons. sion is paid if the insured requires the constant attendance of others to perform daily functions. Exclusions: Self-employed persons. Partial disability: A percentage of the full (basic and Source of Funds supplementary) disability pension is paid depending on the assessed loss of earning capacity from 20% to 99%; a lump Insured person: See source of funds under Old Age, Dis- sum is paid for an assessed loss of earning capacity from ability, and Survivors. 10% to 19%. Self-employed person: Not applicable. The annual basic covered earnings are €9,067.38; the Employer: See source of funds under Old Age, Disability, weekly basic covered earnings are €174.38. and Survivors. Basic covered earnings are adjusted once a year based on changes in wages. Government: See source of funds under Old Age, Disabil- ity, and Survivors. The maximum weekly covered earnings are €1,046. Dependent’s supplement: The basic benefit is increased to Qualifying Conditions 80% of the insured’s average basic covered earnings for Must be assessed with a work injury or occupational dis- the first dependent, 90% for the second, and 100% for the ease. Accidents that occur while traveling to and from work third. A spouse is considered dependent if not working or are covered. receiving any benefit from the Social Insurance Fund. For a beneficiary with no dependent spouse, the basic pension is Temporary Disability Benefits increased by 10% for each child, up to two children. The benefit consists of a basic benefit and a supplementary Benefit adjustment: Benefits are adjusted in January and benefit. The basic benefit is 60% of the insured’s annual July each year based on changes in wages and prices. basic covered earnings in the last contribution year, divided by 52. The supplementary benefit is 50% of the earnings Workers’ Medical Benefits exceeding the annual covered earnings in the last contribu- Benefits for the treatment of work injuries and occupational tion year, divided by 52. diseases include all necessary medical treatment and hospi- The maximum weekly supplementary benefit is 100% of talization in government clinics and hospitals. the weekly basic covered earnings. The benefit is paid after a three-day waiting period for up to Survivor Benefits one year. Survivor pension Dependent’s supplement: The basic benefit is increased to Spouse’s pension: The pension consists of a basic pension 80% of average basic covered earnings for the first depen- and a supplementary pension. The basic pension is 60% of dent, 90% for the second, and 100% for the third. A spouse the insured’s weekly basic covered earnings. The supple- is considered dependent if he or she is not working and is mentary pension is 60% of the supplementary permanent not receiving any benefit from the Social Insurance Fund. disability pension for a 100% loss of earning capacity. For a beneficiary with no dependent spouse, the basic pen- The supplementary permanent disability pension for a sion is increased by 10% for each child, up to two children. 100% incapacity is 60% of the deceased’s average covered The annual basic covered earnings are €9,067.38; the earnings exceeding basic covered earnings in the last two weekly basic covered earnings are €174.38. Basic covered years. earnings are adjusted once a year based on changes in Weekly basic covered earnings are €174.38. Basic covered wages. earnings are adjusted once a year based on changes in The maximum weekly covered earnings are €1,046. wages. The maximum weekly covered earnings are €1,046.
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The spouse’s pension ceases upon remarriage and a lump Source of Funds sum of one year of the pension is paid. Insured person: See source of funds under Old Age, Dis- Orphan’s pension: 20% of the deceased’s basic covered ability, and Survivors. earnings is paid for each child, up to three children; 40% for full orphans plus 50% of the supplementary spouse’s Self-employed person: Not applicable. pension for one orphan or 100% for two or more orphans Employer: See source of funds under Old Age, Disability, younger than age 15 (age 23 for an unmarried female and Survivors. orphan who is a full-time student; age 25 for an unmarried male orphan who is a full-time student or is serving in the Government: See source of funds under Old Age, Disabil- National Guard; no limit if disabled). ity, and Survivors. Weekly basic covered earnings are €174.38. Basic covered Qualifying Conditions earnings are adjusted once a year based on changes in wages. Unemployment benefits: Must have at least 26 weeks of coverage, paid contributions on earnings of at least 26 times The maximum weekly covered earnings are €1,046. the weekly basic covered earnings, and paid or credited Termination settlement: When an orphan’s pension ends contributions on earnings of at least 20 times the weekly due to age restrictions, a lump sum of one year of pension basic covered earnings in the last year. After entitlement is paid. to the benefit ceases, the insured can qualify for additional benefits after 13 weeks of work and paid contributions Dependent parent’s pension: If there are no other eligible survivors, the weekly pension is 40% of the insured’s basic on earnings of at least 26 times the weekly basic covered covered earnings plus 30% of the supplementary permanent earnings. disability pension. The insured must be capable of and available for work and Weekly basic covered earnings are €174.38. Basic covered must report every six weeks to the employment exchange. earnings are adjusted once a year based on changes in If unemployment is due to voluntary leaving, misconduct, wages. direct participation in a trade dispute, or the refusal of a suitable job offer, the insured may be disqualified for up to The maximum weekly covered earnings are €1,046. six weeks. Funeral grant: A lump sum of €507.81 is paid to the Dependent’s supplement: Paid to a spouse who is not widow(er) or the person who paid for the funeral. working or receiving any benefit from the Social Insurance Fund; and for children up to age 15 (age 23 for unmarried Administrative Organization women who are studying full-time; age 25 for unmarried Social Insurance Services of the Ministry of Labor, Wel- men who are studying full-time or in military service; no fare, and Social Insurance (http://www.mlsi.gov.cy/sid/), limit if disabled). directed by a tripartite advisory Social Insurance Board and the Director of Social Insurance Services, collects contribu- Unemployment Benefits tions and administers the program. The benefit consists of a basic benefit and a supplementary Ministry of Health (https://www.moh.gov.cy/) provides benefit. The basic benefit is 60% of the insured’s annual medical services through government-owned hospitals. basic covered earnings in the last contribution year, divided by 52. The supplement is 50% of the covered earnings Unemployment exceeding the annual basic covered earnings in the last contributions year, divided by 52. Regulatory Framework The maximum weekly supplementary benefit is 100% of the weekly basic covered earnings. First law: 1957. The benefit is paid after a three-day waiting period (30 days Current law: 2010 (social insurance). for the voluntarily insured) for up to 156 days. Type of program: Social insurance system. The annual basic covered earnings are €9,067.38; the weekly basic covered earnings are €174.38. Coverage Basic covered earnings are adjusted once a year based on Employed persons, including voluntarily insured persons changes in wages. who work for Cypriot employers abroad and employed The maximum weekly covered earnings are €1,046. persons aged 63 to 65 who are not entitled to an old-age pension. Dependent’s supplement: The basic benefit is increased to 80% of the insured’s average basic covered earnings for the Exclusions: Self-employed persons. first dependent, 90% for the second, and 100% for the third.
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For a beneficiary with no dependent spouse, the basic ben- Single parent benefit (means tested): Paid to single par- efit is increased by 10% for each child, up to two children. ents entitled to the child benefit. Means test: Total household assets (bank accounts, stocks, Administrative Organization investment funds, etc.) must not exceed €1,200,000. Social Insurance Services of the Ministry of Labor, Wel- fare, and Social Insurance (http://www.mlsi.gov.cy/sid/), Family Allowance Benefits directed by a tripartite advisory Social Insurance Board and Child benefit (means tested) the Director of Social Insurance Services, collects contribu- tions and administers the program. Basic benefit: For families with annual income up to €49,000, €380 a year is paid for one eligible child, €380 for Family Allowances two children, €760 for three children, and €1,260 for four or more children. For families with annual income from Regulatory Framework €49,000.01 up to €59,000, €345 a year is paid for two eli- gible children, €690 for three children, and €1,135 for four First law: 1987. or more children. Current law: 2002 (child benefit). Supplementary benefit: If annual family income is €19,500 Type of program: Social assistance system. or less, €95 a year is paid for one eligible child, €190 for two children, €285 for three children, and €415 for four or Coverage more children. If annual family income is from €19,500.01 up to €39,000, €45 a year is paid for one eligible child, €140 Residents of Cyprus. for two children, €235 for three children, and €265 for four or more children. Source of Funds Single parent benefit (means tested): If annual family Insured person: None. income is €39,000 or less, €2,160 a year is paid for each Self-employed person: None. eligible child; if annual family income is €39,000.01 to €49,000, a €1,920 a year is paid for each child. Employer: None. Government: The total cost. Administrative Organization Welfare Benefits Administration Service in the Ministry of Qualifying Conditions Labor, Welfare, and Social Insurance (http://www.mlsi .gov.cy/mlsi/mlsi.nsf), administers the family allowances Child benefit (means tested): Paid to parents living with at least one dependent child. The child must be younger program. than age 18 (age 19 if a student; age 21 if in military ser- vice; no limit if disabled). Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed €1,200,000.
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