TWENTY SEVENTH 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: 1/7/2019 to 30/6/2020
I. GENERAL
A. Administration/Organisation
Organization
a) In order to create synergies between different sections of the Social Insurance Services (SIS) the unit which examines invalidity was assimilated with the statutory and survivor’s pensions unit.
b) No change
c) No change
Payment Methods
a) As a result of the Covid-19 crisis, the percentage of employers and self-employed persons currently using the online payment service (WEP) has doubled from 20% to 40%. In addition to the online payment service, in order to minimize the need for physical presence the SIS adopted a temporary measure of payment of Social Insurance Contributions with credit/debit cards through an online payment service.
b) The Council of Ministers by its decision of 2/10/2019 decided to approve the abolition of the cashier’s desks operating in the District Offices of the SIS and to approve the adoption of automated collection methods, including the use of bank cards for the collection of contributions to the Social Security Services. The changes will be gradual and will involve at a first stage the introduction of compulsory use the current WEP system for employers with a limited number of employees. At the same time efforts are underway to make the WEP system more user-friendly by allowing user to register online. These measures will ultimately improve the service provided to the public, ensure the safety of the transactions, and enable employees and self-employed persons to have information regarding their transactions and their insurance record. In addition the measures will improve the ability of the SIS to prepare statistical reports and analyze data.
c) No change
Computerization
a) Upgrading of the Social Insurance Services (SIS) Data Center to a Single Data Center in the Ministry of labour Welfare and Social Insurance:
- The Social Insurance Data base has integrated into the Single Data Center of the Ministry of labour Welfare and Social Insurance. Efforts are being made for the data bases of other departments of the Ministry to migrate within 2021.
- Electronic Exchange of Social Security Information system (EESSI): Continuous efforts both on a business level and on a technical level are being made for the full implementation of the Electronic Exchange of Social Security Information system which was rolled out by the European Commission in July 2019. The establishment of EESSI is stipulated in EU Regulation 883/2004 for the coordination of social security systems facilitating faster and more efficient message exchange between social security institutions, more accurate data exchange between national authorities and secure handling of personal data. The first process to be implemented electronically is the notification of posting of workers on 2/09/2019. In addition several processes in respect of unemployment benefits, applicable legislation, Occupational Accidents as well as some Horizontal processes have also been implemented during the reference period. However, due to the Covid-19 crisis we are experiencing some delays in implementing all processes electronically.
b) See payment methods above
c) No change
Training
a) No change
b) No change
c) No change
Information and other service to the beneficiaries
a) No change
b) No change
c) No change
B. Benefits
II. MEDICAL CARE
Not applicable as Cyprus has not accepted the obligations of the Code in respect of this Part.
III. SICKNESS BENEFIT
a) No change
b) No change
c) No change
IV. UNEMPLOYMENT BENEFIT
a. No change
b. No change
c. No change
V. OLD AGE BENEFIT/STATUTORY PENSION
a. No change
b. No change
c. No change
d. As of 1/1/2020 the rate of the basic part of the statutory pension was increased by 0.45%. The increase in the supplementary part is equal to the increase in the average consumer price index in the second half of each year compared to the average in the second half of the previous year. However, if this increase is less than 1% no increase is granted. The average of the consumer price index in the second half of 2019 compared to the second half of 2018 decreased by 0.43%. Therefore, in the supplementary part there will be no difference in the amounts of statutory pension that were valid on 31.12.2019.
VI. WORK ACCIDENT AND OCCUPATIONAL DISEASE BENEFIT
a. No change
b. No change
c. No change
d. As of 1/1/2020 the rate of the basic part of the disablement and death benefit increased by 0.45%. The increase in the supplementary part is equal to the increase in the average consumer price index in the second half of each year compared to the average in the second half of the previous year. However, if this increase is less than 1% no increase is granted. The average of the consumer price index in the second half of 2019 compared to the second half of 2018 decreased by 0.43%. Therefore, in the supplementary part there will be no difference in the amounts of disablement and death benefit that were valid on 31.12.2019.
VII. FAMILY BENEFIT
a) According to the national Child Benefit law in order to grant a Child Benefit from Cyprus, the potential beneficiaries must submit every year an application. However, due to the COVID 19 measures for the year 2020 the Ministry decided to examine the provision of the allowances without the submission of an application. The submission of an application is still necessary for applicants who were rejected last year and for first time applicants.
The amount of benefits provided in accordance with the Child Benefit Law increased by 1,97% for 2020.
b) No change
c) No change
VIII. MATERNITY BENEFIT
Not applicable as Cyprus has not accepted the obligations of the Code in respect of this Part.
IX. INVALIDITY BENEFIT
a. No change
b. No change
c. No change.
d. As of 1/1/2020 the rate of the basic part of the invalidity benefit was increased by 0.45%. The increase in the supplementary part is equal to the increase in the average consumer price index in the second half of each year compared to the average in the second half of the previous year. However, if this increase is less than 1% no increase is granted. The average of the consumer price index in the second half of 2019 compared to the second half of 2018 decreased by 0.43%. Therefore, in the supplementary part of invalidity benefit there will be no difference in the amounts of benefit that was valid on 31.12.2019.
X. SURVIVORS’ BENEFIT
a. Article 41 of the Social Insurance legislation 59(I)/2010 has been amended and widower’s benefit is provided to men whose spouses died after January 1, 2018. The qualifying conditions and the rate of benefit is the same as for widow’s pension
b. No change
c. No change
d. As of 1/1/2020 the rate of the basic part of the widow’s/widower’s pension was increased by 0.45%. The increase in the supplementary part is equal to the increase in the average consumer price index in the second half of each year compared to the average in the second half of the previous year. However, if this increase is less than 1% no increase is granted. The average of the consumer price index in the second half of 2019 compared to the second half of 2018 decreased by 0.43%. Therefore, in the supplementary part there will be no difference in the amounts of pensions that were valid on 31.12.2019.
XI. FINANCING
a. No change. The rate of contribution. For employed persons the rate is 21.5%, of which 8.3% is paid by the employee, 8.3% by the employer and 4.9% by the state. The rate of contribution for self-employed persons remained to 20,5%, of which 15,6% shall be paid by him and 4,9% by the State.
b. No change
c. No change
Answers to questions put to the Contracting Parties by the supervisory bodies of the Code and Protocol
According to Article 20 of the Social Insurance law 59(I)/2010 as amended:
“(1) The weekly and annual amount of basic insurable earnings for the year 2009 is €162.22 and €8,435, respectively, and for each year of contributions are increased by a decree of the Council of Ministers, published in the Official Gazette of the Republic, according to the percentage increase of the average insurable earnings in the previous year of contributions compared to the immediately preceding year of contributions.
(2) For the purposes of subsection (1), an actuarial investigation shall be conducted on the basis of the details of the insurable earnings, as they result from the individual accounts of the insured.”
According to Article 77 of the Social Insurance law 59(I)/2010 as amended:
“(1) (a) The amount of the basic statutory pensions, survivor’s pensions and incapacity, , the basic invalidity and parental pensions, including the corresponding pensions and allowances whose substantial period precedes October 6, 1980 , as well as any increase in these benefits, shall be adjusted from 1 January each year, at the rate of increase in the amount of basic insurable earnings as calculated in accordance with Article 20.
(b) Notwithstanding the provisions of Article 20, the basic benefits referred to in paragraph (a) of this subparagraph shall be increased by 0.81% from 1 January 2017.
(2) For the purposes of this Article, where the amount of the basic statutory pension, widowhood or incapacity or missing person benefit is less than the maximum basic benefit that could be paid to the beneficiary, the provisions of subsection (1) shall also apply in the part of the supplementary benefit required to supplement this maximum amount.
(3) The amount of the supplementary benefits referred to in subsection (1) shall be adjusted from the date of adjustment of the basic benefits, by the percentage increase of the average consumer price index in the second half of each year, compared to the corresponding average in the second half of the previous year:
It is understood that the above increase may not be greater than the increase in basic pensions in accordance with subsection (1).
(4) On 1 July each year, the benefits referred to in subsection (1) shall increase by the percentage increase of the average of the consumer price index in the immediately preceding six months, in comparison with the average of this index in the last six months of the previous year:
It is understood that if this percentage is less than 1% no increase will be granted:
It is further understood that the rate of increase is set off against the rate of the next increase granted in accordance with subparagraphs (1) to (3).
(5) The application of subsections (1), (2), (3) and (4) is suspended for the period from 1 January 2013 to 31 December 2016”.
The average CPI for the second half of 2019 was 101.37 while for the second half of 2018 was 98.85, hence there was an increase of 2.55%. However the increase of the basic pensions in 2019 was 0.42%. Since the increase of the CPI was higher than the increase of the basic pensions (0.42%) on the basis of Article 77(3) the increase of the supplementary pensions was equal to the increase of the basic pensions.
Regarding child benefit, the Ministry is currently in consultation with the Legal service on the matter.
Table 1[1] - Increases of Basic and Supplementary Pensions
|
Percentage Increase |
Beneficiary without Dependents |
Beneficiary with1 Dependents |
Beneficiary with 2 Dependents |
Beneficiary with 3 Dependents |
||||||
|
Period |
Basic Pension |
Suppl. Pension |
||||||||
|
Full basic Pension-€ |
Minimum Pension € |
Full basic pension-€ |
Minimum Pension € |
Full basic pension-€ |
Minimum pension € |
Full basic pension-€ |
Minimum pension € |
|||
|
1/1/2011 |
2,98% |
2,58% |
400,92 |
340,78 |
534,56 |
454,38 |
601,38 |
511,17 |
668,20 |
567,97 |
|
1/1/2012 |
2,29% |
2,29% |
410,11 |
348,60 |
546,82 |
464,79 |
617,17 |
522,89 |
683,52 |
580,99 |
|
1/1/20131 |
0,00% |
0,00% |
415,15 |
352,88 |
553,54 |
470,51 |
622,73 |
529,32 |
691,92 |
588,13 |
|
1/1/2014 |
0,00% |
0,00% |
415,15 |
352,88 |
553,54 |
470,51 |
622,73 |
529,32 |
691,92 |
588,13 |
|
1/1/2015 |
0,00% |
0,00% |
415,15 |
352,88 |
553,54 |
470,51 |
622,73 |
529,32 |
691,92 |
588,13 |
|
1/1/2016 |
0,00% |
0,00% |
415,15 |
352,88 |
553,54 |
470,51 |
622,73 |
529,32 |
691,92 |
588,13 |
|
1/1/2017 |
0,81% |
0,00% |
418,51 |
355,74 |
558,02 |
474,31 |
627,77 |
533,60 |
697,52 |
592,89 |
|
1/1/2018 |
0,00% |
0,00% |
418,51 |
355,74 |
558,02 |
474,31 |
627,77 |
533,60 |
697,52 |
592,89 |
|
1/1/2019 |
0,42% |
0,42% |
420,26 |
357,22 |
560,35 |
476,30 |
630,40 |
535,84 |
700,44 |
595,37 |
|
1/1/2020 |
0,45% |
0,00% |
422,16 |
358,84 |
562,88 |
478,45 |
633,24 |
538,25 |
703,60 |
598,06 |
Table 2[2]-Consumer Price Index, Base 2015
|
Month Year |
January |
February |
March |
April |
May |
June |
July |
August |
September |
October |
November |
December |
Yearly Average |
% Change |
2nd half Average |
% Change |
|
2011 |
98,87 |
99,29 |
100,27 |
101,44 |
101,94 |
102,45 |
100,94 |
100,99 |
101,79 |
103,26 |
103,59 |
103,61 |
101,54 |
3,3 |
102,36 |
2,58% |
|
2012 |
101,95 |
102,36 |
103,65 |
104,56 |
104,95 |
104,26 |
103,14 |
103,69 |
104,35 |
105,05 |
104,83 |
104,75 |
103,96 |
2,4 |
104,30 |
3,28% |
|
2013 |
103,81 |
104,04 |
104,76 |
104,25 |
104,22 |
104,34 |
102,81 |
102,71 |
103,27 |
103,37 |
102,63 |
102,33 |
103,55 |
-0,4 |
102,85 |
1,89% |
|
2014 |
100,82 |
101,36 |
102,36 |
102,59 |
102,80 |
103,10 |
102,21 |
101,97 |
102,33 |
102,87 |
102,47 |
100,84 |
102,14 |
-1,4 |
102,12 |
-1,39% |
|
2015 |
99,32 |
99,81 |
100,43 |
100,53 |
100,81 |
100,69 |
98,91 |
98,99 |
99,64 |
100,47 |
100,54 |
99,86 |
100,00 |
-2,1 |
99,74 |
-0,72% |
|
2016 |
98,02 |
97,24 |
97,89 |
98,05 |
98,66 |
98,52 |
98,71 |
98,63 |
99,14 |
99,22 |
99,16 |
99,61 |
98,57 |
-1,4 |
99,08 |
-2,33% |
|
2017 |
98,53 |
98,87 |
99,76 |
100,01 |
99,70 |
99,19 |
98,03 |
98,48 |
98,76 |
99,34 |
99,44 |
99,03 |
99,10 |
0,5 |
98,85 |
-0,66% |
|
2018 |
97,82 |
98,56 |
99,27 |
99,87 |
100,96 |
101,49 |
100,32 |
100,98 |
101,85 |
102,29 |
102,09 |
100,71 |
100,52 |
1,4 |
101,37 |
-0,23% |
|
2019 |
99,76 |
99,79 |
100,62 |
101,04 |
101,18 |
101,29 |
100,02 |
100,32 |
100,89 |
101,29 |
101,60 |
101,43 |
100,77 |
0,3 |
100,93 |
2,56% |
|
2020 |
100,83 |
101,23 |
101,34 |
99,82 |
99,69 |
99,27 |
98,52 |
-0,44% |
Table 3-Icrease of Average Insurable earnings
|
Year |
Avg. Insurable earnings |
% Increase 1st of January (previous year compared to the immediately preceding year) |
|
2010 |
19797 |
|
|
2011 |
20202 |
|
|
2012 |
19984 |
2,05% |
|
2013 |
19777 |
-1,08% |
|
2014 |
19113 |
-1,03% |
|
2015 |
18894 |
-3,36% |
|
2016 |
18860 |
-1,14% |
|
2017 |
18938 |
-0,18% |
|
2018 |
19023 |
0,42% |
|
2019 |
0,45% |