Cyprus will begin implementing a new set of demographic policy measures, with some taking effect retroactively from October 2024, whilst others will be rolled out through September 2025, Labour Minister Yiannis Panayiotou announced.
The measures, which were unveiled slightly later than initially planned by the president in mid-October, form part of a comprehensive €50 million package aimed at addressing the country’s declining birth rates and demographic challenges.
According to data presented by Panayiotou, Cyprus has seen its fertility rate drop from 1.46 children per woman in 2002 to 1.37 in 2022, whilst the average age of first-time mothers has increased from 26.7 to 29.8 years during the same period.
Key initiatives include increasing childbirth allowance to €1,000 for the first child, €1,500 for the second, and €2,000 for the third child, with retroactive effect from October 1.
The government will also extend parental leave benefits to parents with children up to 15 years old, up from the current eight-year limit.
Additional measures scheduled for 2025 include support for workplace nurseries, extended childcare hours until 19:30, and financial assistance of €200 monthly for 24 months to mothers under 30 having their first child.
The package also addresses employment issues with targeted support for unemployed women, young people under 30, and workers over 50 years old, aiming to improve the worker-to-pensioner ratio, which has declined from 2.51:1 in 2002 to 1.82:1 in 2022.
Opposition parties have given a lukewarm response to the announcements, particularly regarding the extended implementation timeline, and have committed to presenting their own proposals.
These measures follow an earlier €50 million package that included increased maternity leave, housing subsidies for young couples, and enhanced child benefits.
The government has indicated that a third set of demographic measures will be introduced within the next two to three years.
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