TWENTYTHIRD ANNUAL REPORT OF THE GOVERNMENT OF CYPRUS

ON THE MEASURES TAKEN TO GIVE EFFECT

TO THE ACCEPTED PROVISIONS OF THE

EUROPEAN CODE OF SOCIAL SECURITY

Period covered:  1/7/2015 to 30/6/2016

I.          List of Laws and Regulations which apply the provisions of the Code

            Please add:

           

            LAWS

-     No amendments.

           

            REGULATIONS

-     -----------------------------

II.          Details of the provisions of the above-mentioned legislation giving      

            effect to each of the following Articles of the Code

PART I

GENERAL PROVISIONS

Articles 1 – 2

No change.

Articles 3 – 6

Not applicable.

PART II

MEDICAL CARE

Articles 7 – 12

Not applicable as Cyprus has not accepted the obligations of the Code in respect of this Part.

PART III

SICKNESS BENEFIT

Articles 13 – 14

No change.

Article 15

A.        No change.

B.        No change.

C(ii)

TITLE II (Article 74)

A.        Number of economically active persons protected –

           

(i)            under general scheme ………………………….. 428.586

             (ii)       under special schemes –

                        scheme for ………………………………………..         NIL

                        scheme for ………………………………………..         NIL

            (iii)                                            Total …………………..   428.586

                                                                                                             ======

            B.        Total number of residents                                                   848.300

C. Total number of economically active persons (A(iii)) per cent of total number of residents (B): 50,5%

The number given in A(i) above is the total number οf persons who have paid or been credited with contributions to the Social Insurance Scheme in 2015.

The number given in B above is the total number of residents in the Government controlled area of Cyprus which was estimated for 2015 on the basis of the census of population of 2011.

D. Not applicable.

Article 16

A.        Recourse is had to Article 65 for the calculation of sickness benefit.

TITLE I  (Article 65)

A.        The amount of the weekly basic insurable earnings and the ceiling of earnings on which contributions are payable remained the same in 2016. The amounts are €174.38 and €1046 respectively.

B.        No change.

C. The weekly wage for 2015 according to ISCO 7212 was €471,47*^[1].

.

1 – 2:  Not applicable.

TITLE II (Article 65)

D.        The weekly amount of sickness benefit for the standard beneficiary is

 €322,93.

E.        No change.

 

F.         No change.

G.        Percentage of the weekly amount of sickness benefit payable (€322,93) in relation to the weekly amount of the reference wage (€471,47): 68,49% (€322,93: €471,47).

TITLE V (Article 65)

D.        Amount of benefit granted during the time basis: €253,18.

G.        Amount of benefit (D) per cent of the standard wage (€471,47):

          53,7% (€253,18 :€471,47).

Β.        Νοt applicable.

C.        No change.

Articles 17

No change.

Articles 18

No Change

PART IV

UNEMPLOYMENT BENEFIT

Articles 19-20

No change.

Article 21

1. No change.

B.   See Articles 19-20

C.

TITLE I (Article 74)

A.        Number of employees protected:

   (i)      under general scheme                               399.330                          

                       

              (ii)      under special schemes                                  NIL

                                                                 ______

 (iii)                              Total                                       399.330

                                                                        ======          

B         Total number of employees                                   304,727

The number of employees in A(i) above is the total number of employed persons who have paid or been credited with contributions to the Social Insurance Scheme in 2015. 

The total number of employees in B above is provided according to the

Labour Force Survey (L.F.S.)(2015) which is prepared by the Statistical

Service of the Ministry of Finance.

                       

No comparison between the number of employees protected under the

General Scheme and the total number of employees is possible since the basis for the collection of the data is different.

For example the number in A above includes also persons who have

worked for at least one week and terminated their employment in the

reference year whereas these persons are not included in the number of B above.

C.       Not applicable.

Article 22

A.        Recourse is had to Article 65 for the calculation of unemployment benefit.

TITLES I, II AND V

(Article 65)

            Same as for sickness benefit (see Article 16 above)

Article 23

No change.

Article 24

No change.

PART V

OLD-AGE BENEFIT

Article 25

No change.

Article 26

According to the Third Schedule of the Social Insurance (Amendment) Law 193(I)/2012 as of April 1st 2013 gradual (1 year per year) extension of the minimum contributory period in the system from the current 10 years to at least 15 years over the period 2013-17.

According to Article 2 of the Social insurance (Amendment) Law 193(I)/2012 an automatic adjustment of the statutory retirement age every 5 years has been introduced in line with changes in life expectancy at the statutory retirement age, to be applied in 2018 and the first revision will cover the period 2018-2023.

The above provisions were introduced as part of the measures required by the MoU that Cyprus concluded with Troika in order for Cyprus to secure a financial bailout. The measure aims at improving the financial sustainability of the Social Insurance System while at the same time reducing early exit from the labor market in line with the Council Country Specific Recommendations of 2012.

Article 27

A.        No change.

B.        No change.

C.

TITLE II (Article 74)

A.        Number of economically active persons protected:

             (i)        under general scheme  ………………… 429.088

              (ii)      under special schemes …………………     ---

                                                                                                                        _______

             (iii)                                          Total ………………  429.088                                                                                                                                  =======       

B.        Total number of residents …………………….    847.000

C.        Total number of economically active persons (A(iii)) per cent of

            total number of residents (B): 50.66%

The number given in A(i) above is the total number of persons who have paid or been credited with contributions to the Social Insurance Scheme in 2015.

The number given in B above is the total number of residents in the

Government controlled area of Cyprus which was estimated for 2015 on the basis of the census of population of 2011.

D.        Not applicable.

Article 28

A.        Recourse is had to Article 65 for the calculation of old-age benefit.

According to Article 35A of the Social Insurance (Amendment) Law 193(I)/2012 as of January 1st 2013 Actuarial reduction of pension entitlements from the General Social Insurance Scheme by 0.5% per month for retirements earlier than the statutory retirement age in line with the planned increase in the minimum age for entitlement to an unreduced pension to reach 65 (by 6 months per year), between 2013 and 2016.

This provision was introduced as part of the measures required by the MoU that Cyprus concluded with Troika in order for Cyprus to secure a financial bailout. The measure aims at improving the financial sustainability of the Social Insurance System while at the same time reducing early exit from the labor market in line with the Council Country Specific Recommendations of 2012.

TITLE I (Article 65)

A.        The amount of the weekly basic insurable earnings and the ceiling of earnings on which contributions are payable remained the same in 2016. The amounts are €174.38 and €1046 respectively.

B.        No change.

C.        The estimated wage of the skilled manual worker was €471.47 in 2015.

            1-2      Not applicable.

TITLE III (Article 65)

D.        The amount of the weekly benefit granted to the standard beneficiary whose earnings are equal to the reference wage (€471.47) and with a full insurance record from 1967 to 30.6.2016 (48.75 years) is €285.45 or 60.54% of the reference wage as against 40% provided by the Code.

E.        Not applicable.

F.         Not applicable.

G.        The following Table gives examples of the weekly amount of pension as a percentage of the reference wage of the standard beneficiary with varying years of insurance.

Years of insurance	Amount of benefit for standard beneficiary   (€)	Benefit  as % of reference wage  (€471.47)
35 30	246 231.80	52.18% 49.16%

TITLE V (Article 65)

(with full insurance record):

D.        Amount granted during the time basis: €250.57

G.        Amount of benefit (D) per cent of the standard wage (€471.47): 53.15% (€250.57: €471.47).

B.        Not applicable.

C.                                                       

TITLE VI (Article 65)

1.         No change.

Period under Review	Cost-of-living Index	Index of earnings (1) in money terms
A.    Beginning of period - July 2015	115.50(2)	829.57 (3)
B.    End of period - June 2016	98.52	788.09(4)
C.    Percentage A B	117.23%	105.26%

Period under Review	Benefit
	Weekly average benefit per beneficiary I	Weekly benefit for standard beneficiary II	Benefit for standard beneficiary as percentage of reference wage III
A.   Beginning of period - July 2015	€168.12	€352.13	75.70%(1)
B.   End of period - June 2016	€167.87	€356.74 (2)	75.66%(2)
C.  Percentage A                          B	100.1%	98.70%

Article 29

1.            No change.

2.         According to the Social insurance Amendment Law 193(I)/2012 as of April 1st 2013 gradual (1 year per year) there is going to be an extension of the minimum contributory period in the system from the current 10 years to at least 15 years over the period 2013-17.

3.         Not applicable.

4.         Not applicable.

5.         No change.

Article 30

            No change.  

PART VI

EMPLOYMENT INJURY BENEFIT

Articles 31 and 32

            No change.

Article 33

                       

A.        No change.

B.                                            TITLE I (Article 74)

A.        Number of employees protected:                         

             (i)        under general scheme                               398.605                     

            (ii)        under special schemes                                  NIL

                                                                                      _______

                                                            Total                           398.605

                                                                                                =======

B.        Total number of employees                                   304.727

                       

Τhe number of employees in A (i) above represents the total number of

employed persons who have paid or been credited with contributions to the Social Insurance Scheme in 2015.

The total number of employees in B above is provided according to the

Labour Force Survey (L.F.S.) (2015) prepared by the Statistical Service of the Ministry of Finance. 

Please refer to the Part IV, Unemployment Benefit for further explanation regarding the number of employees above.

Article 34-35

                       

A.        No change.

Article 36

A.        No change. The weekly amount of the constant allowance for 2016 remained the same as the year 2015 that is €57.08.

                                                                                    

B.                                                  Injury Benefit

TITLE I (Article 65)

A.        The amount of the weekly basic insurable earnings and the ceiling of earnings on which contributions are payable remained the same in 2016. The amounts are €174.38 and €1046 respectively.

B.        1-2      No change.

C.        The weekly wage for 2015 according to ISCO 7212 was €471.47

            1.         Not applicable.

            2.         Not applicable.

TITLE II (Article 65)

D.        Weekly amount of injury benefit for the standard beneficiary: €322.93.

E.        No change.

F.         No change.

G.        Percentage of the weekly amount of injury benefit payable (€322.93) in relation to the weekly amount of the reference wage (€471.47): 68.49% (€322.93: €471.47).

            The amount of the periodical benefit does not vary by region.

TITLE V (Article 65)

D.        Amount of benefit granted during the time basis: €253.17

G.        Amount of benefit (D) per cent of the standard wage (€471.47):

53.7% (€253.17 : €471.47).

Disablement Benefit

TITLE I (Article 65)

A.        No change.

B.        1-2      No change.

C.        No change.

TITLE II (Article 65)

D.        Weekly amount of disablement benefit for the standard beneficiary: €352.63

E.        No change.

F.         No change.

G.        Percentage of the weekly amount of disablement benefit in relation to the weekly amount of the reference wage: 74.79% (€352.63 : €471.47).

TITLE V (Article 65)

D.        Amount of benefit granted during the time basis: €282.87

G.        Amount of benefit (D) per cent of the standard wage (€471.47):

60% (€282.87 : €471.47)

TITLE VI (Article 65)

1.         No change.

Period under Review	Cost-of-living Index	Index of earnings (1) in money terms
A.    Beginning of period - July 2015	115.50(2)	829.57 (3)
B.    End of period - June 2016	98.52	788.09(4)
C.    Percentage A B	117.23%	105.26%

2. Due to the economic crisis that Cyprus was facing we were under economic adjustment program which was bound by a Memorandum of Understanding (MoU) on Specific Economic Conditionality (SEPC). For this reason in 2016 there was no increase on the rate of the disablement benefit.

4.

Period under Review	Benefit
	Weekly average benefit per beneficiary I	Weekly benefit for standard beneficiary * II	Benefit for standard beneficiary as percentage of reference wage III
A.   Beginning of period - July 2015	€91.81	€ 348.85 (1)	75% (1)
B.   End of period - June 2016	€91.86	€352.63(2)	74.80% (2)
C.  Percentage A                          B	99.9%	99%

Death Benefit

TITLE I (Article 65)

A.        1.         No change. 

2-3.     No change.

B.        No change.

C.        The weekly wage for 2015 according to ISCO 7212 was €471.47

           

            1.         Not applicable.

            2.         Not applicable.

TITLE IV (Article 65)

D.        Amount of widow/er’s pension for the standard beneficiary: €263.89 per

week.

E.        No change.  

F.         No change.

G.        Percentage of the weekly amount of widow/er’s pension in relation to the weekly amount of the standard wage: 56% (€263.89: €471.47).

           

Α funeral grant is payable where the victim of an employment accident or occupational disease dies.  The beneficiary is the surviving spouse and, in the absence of a spouse, the person who has undertaken the funeral expenses.  The amount of the funeral grant is fixed at €507,81 irrespective of the amount of the actual expenses.

           

The rate of benefit does not vary by region.

TITLE V (Article 65)

           

D.        Amount of benefit granted during the time basis: €211.27

G.        Amount of benefit (D) per cent of the standard wage (€471.47): 44.81% (€211.27 : €471.47).

ΤΙTLE VI (Article 65)

1.         No change.

Period under Review	Cost-of-living Index	Index of earnings (1) in money terms
D.    Beginning of period - July 2015	115.50(2)	829.57 (3)
E.    End of period - June 2016	98.52	788.09(4)
F.     Percentage A/B	117.23%	105.26%

Due to the economic crisis that Cyprus was facing we were under economic adjustment program which was bound by a Memorandum of Understanding (MoU) on Specific Economic Conditionality (SEPC). For this reason in 2016 there was no increase on the rate of the death benefit.

3.        

Period under Review	Benefit
	Weekly average benefit per beneficiary I	Weekly benefit for standard beneficiary * II	Benefit for standard beneficiary as percentage of reference wage III
A.   Beginning of period - July 2015	€168.12	€ 261.62 (1)	56% (1)
B.   End of period - June 2016	€167.87	€263.89(2)	55.97% (2)
C.  Percentage A                          B	100.15%	99.13%

C.        No change.

D.        Where the degree of disability is between 10% and 19% a disablement grant is payable instead of a pension. The amount of the grant varies according to the degree of disablement as shown in the Table below.

Degree of disablement	Amount €
10% 11% 12% 13% 14% 15% 16% 17% 18% 19%	3.777,87 4.155,65 4.533,44 4.911,22 5.289,01 5.666,80 6.044,58 6.422,37 6.800,16 7.177,94

Αrticles 37 – 38

No change.

PART VII

FAMILY BENEFIT

Article 41

 (PERIOD 1/1/2015-31/12/2015)

Number of families protected: 66.587[2](incl.9839 single parent families)

Total number of families: 303.242[3]

Percentage of families protected during 2015: 21.95%

Total number of children for whom child benefit was paid: 116.209[4]

Total number of children up to 19 years old[5]: 190.766

Percentage of children for whom child benefit was paid during 2015 : 60.91%

Article 42

The amount of the child benefit is proportional to the number of children in the family and the level of family income. Income criteria were in place even before 1.1.2012 in order to provide the supplementary child benefit for families with low and middle incomes (based on the income obtained three years prior to the year of payment). The provision of the supplementary child benefit is still attributed to families with income up to and the double of the non-taxable (gross) income threshold (€19.500 and €39.000 respectively) obtained  during the previous year of the referred period.

Since 1.1.2014, the following changes have been forwarded:

Income and property assets (economic) criteria

Income and property assets (economic) criteria are conditions for the child benefit provision.

A family is entitled to child benefit if its total gross family income obtained during the previous year does not exceed:

     (a) €49.000 for families with one (1) dependent child,

     (b) €59.000 for families with two (2) or more dependent children

Regardless of the amount of income, the child benefit will be granted, provided that the total value, in current prices, of the property assets (economic criteria) of the family including real estate, shares, bonds and securities, does not exceed  €1.200.000.

In calculating the family income, the gross income earned in one year  before the year in which the payment of the benefit falls due, by all the family members, from work, employment, self-employment, pensions, alimony, rents, dividends, interest on deposits/bonds/securities in Cyprus or/and abroad shall be taken into account.  Any public allowance provided by the Social Welfare Services or any other grant provided by any other Government Service shall also be taken into account. Excluded from the family income are provisions such as: child benefit, mother allowance, student grants, student welfare, scholarships, and grants to deprived or distressed people with disabilities or chronic illnesses as well as income from employment of children and full-time students.

Single-parent family benefit

A complementary benefit to child benefit beneficiaries is attributed to single parents (single unmarried, divorced, widows, and spouse of a missing person) with dependent child/children, who are living without a partner.The single parent family allowance is also based on the total gross income obtained during the previous year as well as  on  economic criteria. A single parent is entitled to single parent benefit  if its total gross income obtained during the previous year does not exceed €49.000.

Separated spouses are not considered as single-parents unless their marriage is officially dissolved by divorce.

Single parent families receiving a child benefit, are entitled to single parent benefit for each dependent child, if the single parent and the dependent child are citizens of the Republic, or nationals of a member state of the European Union and have continuous and legal residence in the areas controlled by the Republic for at least three years before the date of application for a benefit payment. Therefore, a prerequisite for the granting of the single parent benefit is the application for child benefit and its approval by the Permanent Secretary or an authorised officer.

Child and Single Parent Benefit Rates

The amount of child benefit and complementary single-parent family benefit for years 2014 and 2015 is described on the following tables:

As from 1.1.2014, the family income threshold is decreased to €59.000 for the families having 2 or more dependent children, and the threshold for single parent benefit is reduced to €49.000.

The amount of child benefit as from 1/1/2014 is analyzed below:

Child benefit for families with income of up to €59.000,00

Number of children in the family	Basic annual benefit for families with income over €49.000,01 and up to €59.000,00 obtained during the previous year (per dependent child)	Basic annual benefit for families with income of up to €49.000,00 obtained during the previous year (per dependent child)	Supplementary annual benefit for families with  income of up to €19.500,00 obtained during the previous year (per dependent child)	Supplementary annual benefit for families with income over €19.500,01 and up to €39.000,00 obtained during the previous year (per dependent child)
Family with 1 child	0	€380	€95	€45
Family with 2 children	€345	€380	€190	€140
Family with 3 children	€690	€760	€285	€235
Family with 4 or/and more  children	€1.135	€1.260	€415	€265

Single Parent Benefit as from 1/1/2014

TABLE F: Single-parent family benefit

Family income (obtained during the previous year)	Monthly allowance for every dependent child
€0 – €39.000,00	€180
€39.000,01 – €49.000,00	€160

Article 43

No change

PART VIII

MATERNITY BENEFIT

Articles 46-52

Not applicable as Cyprus has not accepted the obligations of the Code in respect of this Part.

PART IX

INVALIDITY BENEFIT

Articles 53 – 54

            No change.

Articles 55

A.        No change.

B.        No change.

C.

TITLE II (Article 74)

A.        Number of economically persons protected:

                          (i)       under general scheme                   428.586

                         (ii)       under special schemes                      NIL             

                        (iii)                                   Total                       428.586

                                                                                                ======

B.        Total number of residents                                     848.300^[6]

C.        Total number of economically active persons (A(iii)) per cent of total

            number of residents (B) : 50.5%

The number given in A(i) above is the total number of employed or self-employed persons who have paid or been credited with contributions to the Social Insurance Scheme in 2015. 

The number given in B above is the total number of residents in the Government controlled area of Cyprus, which was estimated for 2015 on the basis of the census of population of 2011.

D.        Not applicable.

Article 56

A.        Recourse is had to Article 65 for the calculation of invalidity benefit.

TITLE I (Article 65)

A.        The amount of the weekly basic insurable earnings and the ceiling of earnings on which contributions are payable remained the same in 2016. The amounts are €174.38 and €1046 respectively.

B.        No change.

C.        The weekly wage for 2015 was €471.47 (ISCO 7212).

1.         Not applicable.

2.         Not applicable.

TITLE II (Article 65)

D.        The weekly amount of invalidity benefit for 100% invalidity for a person with a spouse and two children is €383.83. This amount is guaranteed for a person whose actual and prospective contributions cover a period of not less than 47 years.

E.        Not applicable.

F.         Not applicable.

G.        Percentage of invalidity pension in relation to the standard wage:

           81.41% (€383.83  : €471.47).

TITLE V  (Article 65)

            Same as for old-age benefit

            (see TITLE V under Article 28).

B.        Not applicable.

C.       

TITLE VI (Article 65)

1.         No change.

2.

Period under Review	Cost-of-living Index	Index of earnings (1) in money terms
A.    Beginning of period - July 2015	115.50(2)	829.57 (3)
B.    End of period - June 2016	98.52	788.09(4)
C.    Percentage A/B	117.23%	105.26%

3.            Due to the economic crisis that Cyprus was facing we were under economic adjustment program which was bound by a Memorandum of Understanding (MoU) on Specific Economic Conditionality (SEPC). For this reason in 2016 there was no increase on the rate of the death benefit.

Period under Review	Benefit
	Weekly average benefit per beneficiary I	Weekly benefit for standard beneficiary II	Benefit for standard beneficiary as percentage of reference wage III
A.   Beginning of period - July 2015	€152.40	€379.30 (6)	81.54%(6)
B.   End of period - June 2016	€152.29	€383.83	81.41%
C.  Percentage A                          B	100%	98.82%

Articles 57 – 58

            No change.

PART X

SURVIVOR’S BENEFIT

Articles 59 – 60

            No change.

Article 61

A.        Recourse is had to paragraph (b). The persons protected comprise surviving spouses and children of all persons protected for old-age benefit.  See reply under Article 27.

B.        See reply under Article 27.

C.        See reply under Article 27.

D.        Not applicable.

Article 62

A.        Recourse is had to Article 65.

TITLE I  (Article 65)

A.        No change in the method of calculation of the widow’s pension.

            The amount of the benefit for a full orphan is as follows:

            -           Basic benefit: €69,19 per week per orphan.

-           Supplementary benefit:  This represents 50% of the amount of the supplementary widow’s pension which would have been payable in each case.  The total supplementary benefit where there are more than two orphans cannot exceed the amount of the supplementary widow’s pension.

The amount of benefit for half-orphans is as follows:

            -           Basic benefit: €34,59  per week per orphan.

-           Supplementary benefit:  This represents 50% of the amount of the supplementary widow’s pension which would have been payable in each case.  The total supplementary benefit where there are more than two orphans cannot exceed the amount of the supplementary widow’s pension.

The amount of funeral grant remained the same at €507,81 for the death of an insured person or a pensioner and €253,90 for the death of a dependent of an insured person or a pensioner.

B.        No change.

C.        The weekly wage for 2015 was €471.47 (ISCO 7212).

            1.         Not applicable.

            2.         Not applicable.

TITLE IV  (Article 65)

           

D.        Weekly amount of widow’s pension for a widow with two

children whose deceased husband had 47 years of insurance(actual and prospective): €383.83

Ε.        Not applicable.

F.         Not applicable.

G.        Percentage of the pension in relation to the standard wage: 81.41%

(€383.83 : €471.47).

ΤΙΤLE V (Article 65)

D.        Amount of benefit granted during the time basis: €314.08

G.        Amount of benefit (D) per cent of the standard wage (€471.47):

            66.62% (€314.08 : €471.47).

B.        Not applicable.

TITLE VI (Article 65)

1.         No change.  

2.        

Period under Review	Cost-of-living Index	Index of earnings (1) in money terms
A.    Beginning of period - July 2015	115.50(2)	829.57 (3)
B.    End of period - June 2016	98.52	788.09(4)
C.    Percentage A/B	117.23%	105.26%

3. Due to the economic crisis that Cyprus was facing we were under economic adjustment program which was bound by a Memorandum of Understanding (MoU) on Specific Economic Conditionality (SEPC). For this reason in 2016 there was no increase on the rate of the survivors’ benefit.

Period under Review	Benefit
	Weekly average benefit per beneficiary I	Weekly benefit for standard beneficiary II	Benefit for standard beneficiary as percentage of reference wage III
A.   Beginning of period - July 2015	€131	€ 379.38(2)	81.6%(2)
B.   End of period - June 2016	€132.75	€383.83	81.41%
C.  Percentage A                          B	98.68%	98.84%

           

Article 63

1.         The amount of the weekly basic insurable earnings and the ceiling of earnings on which contributions are payable remained the same in 2016. The amounts are €174.38 and €1046 respectively

2          The Table below gives examples of the amount of pension for the standard beneficiary whose late breadwinner’s average earnings are equal to the reference wage.

Actual and prospective years of insurance	Amount of benefit for standard beneficiary (€)	Benefit as % of reference wage (€471.47).
35 30	242.54 225.84	51.44% 47.9%

3.         Not applicable.

4.         Not applicable.

5.         No change.

Article 64

No change.

PART XII

COMMON PROVISIONS

Articles 68-69

No change.

Article 70

No change.

Article 71

No change.

III.        No change.

IV.       No change.