The expansion of income criteria for granting child benefit and the support of more families are now at the centre of discussions on tackling the demographic issue, at a time when high living costs and housing expenses create an especially pressing environment for young couples and large families.
The Deputy Ministry of Social Welfare is in the final stages of completing the relevant bill, whose public consultation ended on 30 April and which, after final revisions, is expected to be submitted to the Council of Ministers and subsequently to the new House of Representatives. The most likely scenario is that the bill will be tabled from September onwards, given that child benefit and single‑parent family benefit are paid each May and there is therefore no immediate time pressure.
It should be noted that the benefit for 2026 will begin to be paid to beneficiaries from Friday, 29 May.
At the same time, organised bodies and organisations warn that the demographic issue is becoming one of the most serious challenges facing Cyprus, calling for more substantial measures to support families, especially large ones. Speaking to Politis, Dinos Olympios, head of the Cyprus Large Families’ Organisation, describes the demographic problem as a ‘live grenade’, directly linking the decline in births to the rising cost of living, outdated income thresholds and the difficulties young people face in trying to start a family.
Birth statistics show a clear shift in childbearing from the 20–29 age group to those over 30, with births among younger age groups falling sharply in Cyprus. This trend reflects not only changes in social choices but also pressures from the modern socio‑economic environment.
The changes
As senior Welfare Benefits Management officer Fanos Kouroufexis told Politis, comments and proposals submitted during the public consultation process are already being evaluated by the Deputy Ministry to finalise the bill before it is submitted to the Council of Ministers.
‘We are almost ready,’ Mr Kouroufexis said, indicating that the final provisions will incorporate observations and views submitted by organised groups and citizens.
According to the draft bill, the amount of the benefit will vary depending on household income (based on the tax reform implemented from 1 January 2026) and the number of children, with the main aim of expanding eligibility and supporting more families.
Amounts per dependent child
Accordingly, the amounts per dependent child will be as follows:
· For household income up to €21,500: a family with one child will receive €588; with two children €705; with three children €1,293; and with four or five children €2,073.
· For incomes above €21,500 and up to €41,000: €526 for one child; €643 for two children; €1,231 for three children; and €1,887 for families with four or more children.
· For incomes from €41,000 to €51,000: families with one or two children will receive €470; with three children €940; and with four or more children €1,559.
· For incomes from €51,000 to €61,000: €235 for one child; €427 for two children; €854 for three children; and €1,404 for families with more than four children.
· For incomes from €61,000 to €66,000: a family with one child will receive €118; with two children €214; with three children €854; and with four or more children €1,404.
Under the current regulations, to qualify for the benefit a family’s annual gross income must not exceed €49,000 for one child or €59,000 for two children. As outlined above, this will change from 2027 under the new scheme, while the Deputy Ministry of Social Welfare has also made provision for families with higher incomes, particularly large families.
Specifically:
· For incomes from €66,000 to €71,000, families with one child will not receive any benefit. However, families with two children will receive €107; with three children €427; and with four or more children €1,404.
· For incomes from €71,000 to €76,000, only families with three or more children will be eligible. Specifically, €214 for three children; €702 for four children; and up to €1,404 for families with more than five children, again per dependent.
· Families with incomes from €76,000 to €81,000 will receive a benefit only if they are large families. The amount will be €351 per child for four children, and up to €1,404 for families with more than five children.
· For household incomes above €81,000, only families with more than five children will be eligible, with the benefit set at €1,404 per dependent.
The final version of the bill is expected to differ in some points or amounts, as the Deputy Ministry of Social Welfare continues to assess the feedback submitted during public consultation.
Ageing population a major issue
Large families’ head Dinos Olympios considers the system underpinning child benefit outdated if Cyprus is serious about addressing the demographic challenge.
It is important to underline that low birth rates have reached critical levels in the country. One year after the war, in 1975, the annual fertility rate had fallen to 2.1. From the following year it began to rise again, reaching 2.49 in 1992, with minor fluctuations. From 1996, the fertility rate dropped below 2 – the population replacement level – and the decline began. In 2015 it fell to 1.31 and from 2016 it rose slightly, reaching 1.38 in 2024. At the same time, as noted earlier, there has been a clear shift towards childbearing after the age of 30.
In his intervention to Politis, Mr Olympios describes a problem that threatens not only families but the sustainability of the state itself. The surge in living costs has rendered existing income criteria for benefits inadequate and unjust.
“Consumer goods have skyrocketed due to inflation and the cost of living has increased dramatically. Yet the income thresholds in force today were essentially set 30 years ago and were not adjusted to reflect new economic realities,” he notes.
He explains that the organisation’s position is the abolition of income criteria for benefits for large families. “There are cases where couples, due to a CoLA (Cost of Living) adjustment or a small pay rise, exceed the threshold by as little as €50 and lose the entire child benefit. It is irrational and socially unjust,” he says, citing the €59,000 threshold as an example.
Who will pay pensions?
The organisation’s president directly links the demographic issue to the future of the economy and the country’s sustainability.
“Cyprus faces a serious problem of population ageing. The demographic issue is today the number one national problem,” he stresses.
Citing census data, he explains that in 1973 children up to the age of 14 made up 28.9 per cent of the population, while those over 65 accounted for just 9.5 per cent. By 2023, children up to 14 had fallen to 15.3 per cent, while citizens over 65 had risen to 17.5 per cent.
“The entire structure of our society is now being called into question. Who will be working in the coming years to ensure pensions can be paid?” he asks.
Fewer large families
Mr Olympios notes that the decline in births is now clearly reflected in the number of families receiving large‑family benefits.
“In 2020, 4,332 large families received the benefit. By 2025, the number had fallen to 3,511. That alone shows the seriousness of the situation,” he says.
He also recalls that in the past, when meaningful family support incentives were introduced, positive results followed.
“In 1991, under President Vassiliou, child benefit was increased and fertility and births rose. In the years that followed, even closed army camps were reopened. People are what make states, not buildings or projects,” he stresses.
Incentives for young people
He also makes particular reference to the difficulties faced by young couples, mainly due to the unbearable cost of housing.
“For a young person to have a child, they must first be able to secure housing. Housing is the key incentive for young people,” he says.
He proposes the creation of family‑support infrastructure in large workplaces and organisations such as the Electricity Authority, the Telecommunications Authority, banks and large companies.
“All‑day nurseries, schools at all levels, playgrounds and creative activity spaces could be created, so working parents can be supported. The aim is to reconcile work with family life,” he explains.
As he points out, the cost of raising a child has become unbearable.
“I know a young couple with a combined net monthly income of €1,650. Of that, €800 goes on rent. They are left with €850 to live on. They asked me: ‘With what means can we have and raise a child?’ That is the real question the state must answer,” he concludes.
