Child Benefit in Cyprus: Draft Amendments from 2027 Already in Parliament

Child benefit in Cyprus is expected to cover more families from 2027. The bill includes raising income limits, 5% or 10% benefit increases for the two lowest income groups, and more lenient rules for reducing benefits following income increases. The proposals were presented to the Parliamentary Labor Committee on Tuesday, October 13.

The changes are not yet in effect. The planned effective date is January 1, 2027, provided the law is passed. In previous official estimates, the government indicated approximately 17,000 additional families and 23,500 children. However, the latest report from the commission suggests a different figure: 23,000 families.

Cyprus Child Benefit - New Income Limits

The bill increases the maximum annual family income that qualifies for the benefit. For a household with one child, the limit is to increase from 49,000 to 69,000 euros, and with two children — with 59,000 to 74,000 euros.

In the case of three children, the proposed threshold is 90,000 euros, while in the case of four children, it is 100,000 euros. total annual gross family income, not the salary of one parent or the amount received in cash.

Families with at least five dependent children are already exempt from the income test. This is not a new development introduced by this reform.

Draft changes from 2027

How will income limits change?

Maximum annual gross family income. New thresholds require the adoption of legislation.

Children in care	Current limit	Proposed limit
One child	49 000 €	69 000 €
Two children	59 000 €	74 000 €
Three children	64 000 €	90 000 €
Four children	69 000 €	100 000 €
Five or more	No limit	No limit - no change

For example, a family with two children and an annual gross income of €65,000 exceeds the current limit. With the adoption of the proposed rules, they would fall within the new threshold. However, they would still have to meet the other conditions for receiving the benefit.

5 or 10 percent raises

The project provides for an increase in benefits for the two lowest income groups:

• by 10 percent for families with an income of up to 22,000 euros per year;
• by 5 percent with an income from 22,000.01 to 44,000 euros.

In the examples presented, a family with one child and the lowest income would receive approximately 660 euros per year, and with two children — about 1580 euros in total.

For three children, the figure is approximately €4,400 per year, and for four, approximately €9,300. These are examples for the lowest income group, not uniform rates for all families.

For families with one or two children, the benefit is paid as a lump sum per year. Families with three or more children receive it in monthly installments.

A small salary increase should not take away all the support

The reform is intended to limit situations in which a small increase in income results in a disproportionately large loss of benefit.

Instead of abruptly cutting off assistance, a more gradual reduction in benefits is planned. However, this does not mean the abolition of all income limits.

The change also affects childcare subsidies for young children. Eligibility for the benefit is one of the conditions for using the tuition and meal subsidy program.

The remaining conditions will still apply.

Raising the thresholds does not automatically grant benefits to every family. The bill does not change the basic requirement of five years of legal and uninterrupted residence. In cases covered by EU benefits coordination, periods in other EU countries may also be relevant.

There is also a property criterion of 1.2 million euros, including real estate, deposits and securities. Families with at least five dependent children are also exempt from this criterion.

How many families will benefit from child benefit in Cyprus?

September government announcements indicated approximately 17,000 additional families and 23,500 children. However, according to the Cyprus News Agency report from the committee meeting on October 13, Undersecretary of Social Welfare Tina Pavlou spoke about 23,000 additional families.

The available information does not explain this difference. Therefore, we should not conclude that families and children were confused, nor should we present the earlier estimate as definitive.

When will the new rules come into effect?

The planned date is January 1, 2027, taking into account income earned in 2026. However, the act requires adoption by Parliament.

As previously explained, those already receiving benefits should not take additional action solely because of the increase—the amounts will be adjusted automatically. Changes to data affecting entitlements must still be reported.

New beneficiaries will need to submit an application once the appropriate procedure is launched. Final terms will be reviewed after the bill is passed and the 2027 guidelines are published.

Sources: Undersecretariat of Social Welfare, Presidency of the Republic of Cyprus, Cyprus News Agency, AlphaNews, Politis.