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Higher child benefit in Cyprus. Changes to affect 17,000 families
Child benefit in Cyprus is set to increase from January 2027. The government has approved a €12.5 million reform that will increase benefits for lower-income families and expand eligibility thresholds.
According to government estimates, approximately 17,000 families, raising a total of 23,500 children, will benefit from the changes. However, the reform is not yet finalized – the draft bill must be passed by the House of Representatives. Until then, the current rules will remain in effect.
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The benefit will increase by 5 or 10 percent
The largest increase is planned for lower-income households.
Families earning up to €22,000 annually will receive a 10 percent increase in benefits. For families earning up to €44,000 annually, the increase will be 5 percent.
Higher thresholds for larger families
A significant part of the reform concerns large families. The maximum income threshold for a family raising three children is to be raised to €90,000 per year.
For families with four children, the limit is to increase from €69,000 to €100,000. Families with at least five children will still not be subject to the income criterion.
The change means that some households that currently exceed the applicable limits and are not eligible for the benefit will be able to enter the system.
No more sudden loss of your entire benefit
The government also wants to change the way income thresholds work. Currently, even a small excess over a certain limit can result in the loss of all benefits.
Following the reform, assistance will be gradually reduced as family income increases. This is intended to reduce situations in which a salary increase or additional income leads to the sudden withdrawal of the entire benefit.
The exact method of calculating the aid should be presented in the draft law and implementing regulations.
More families will receive childcare assistance
The package also includes the extension of separate support for the care, education and nutrition of children up to the age of four years and four months.
According to government estimates, approximately 2,000 additional families and 2,800 children will have access to this assistance.
The solution is intended to reduce the expenses incurred by parents on caring for the youngest children and increase the disposable income of households.
Large families want further changes
The National Organization for Large Families welcomed the planned increases and the expansion of income thresholds. However, its representatives believe that the system should take more into account the number of children supported by the family.
The organization points out that as the number of household members increases, the allowable income per person should not decrease.
It calls for more proportionate rules to be applied not only when setting the highest income threshold, but also when calculating the amount of benefit and assessing family assets.
When will the new rules come into effect?
The government assumes that the reform will come into force in January 2027. However, this does not mean that the new rates and thresholds are already in force.
The bill must first be submitted to Parliament and receive the House of Representatives' approval. Members of Parliament can still amend the bill during the debate, so the final rules will only be known once the relevant legislation is passed.
Until then, child benefit claims are assessed under the current criteria.
Sources: SigmaLive, Cyprus Mail.
