The government Wednesday detailed the implementation timeline for its new demographic policy measures, with some changes taking effect retroactively from October 2024.
Labour Minister Yiannis Panayiotou said legislation would be submitted to parliament in the coming weeks to increase child benefits and expand parental leave eligibility. The minister revealed that birth grants would rise retroactively from 1 October 2024, increasing from €628.92 to €1,000 for the first child, €1,500 for the second, and €2,000 for the third child, benefiting approximately 8,000 mothers annually.
The comprehensive plan, presented at a press conference attended by Deputy Minister for Social Welfare Marilena Evangelou and Deputy Minister to the President Irene Piki, consists of three phases totalling over €100 million.
The first phase, implemented during the administration’s initial 18 months, cost about €50 million, whilst the second phase, to be rolled out over the next 12 months, will exceed €50 million. The third phase will align with reforms to the tax system, pension system, and the conversion of all primary schools to all-day institutions.
The measures aim to boost fertility rates and improve the worker-to-pensioner ratio. Key initiatives include extending parental leave eligibility to parents with children up to 15 years old, up from the current eight years, and increasing leave duration from eight to 10 weeks for second children and to 12 weeks for third children. Income criteria for child benefits will be eliminated for families with five or more dependent children, with legislation expected before year-end.
The government also plans to establish workplace nurseries by the second quarter of 2025 and extend nursery operating hours until 7:30 pm by the third quarter of 2025. Additional employment schemes targeting unemployed individuals over 50 will launch in the coming weeks, while programmes for unemployed and inactive women and those under 30 will begin in early 2025.
A new monthly allowance of €200 for young mothers under 30 having their first child will be introduced in September 2025, providing total support of €4,800 over 24 months. The plan also includes provisions for paid internships, with relevant legislation expected in 2025 following consultations with youth representatives.
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