Cyprus government approves child benefit reform

The Cypriot Cabinet approved a significant reform of the child benefit system on September 10, 2026, aimed at increasing financial support and expanding eligibility criteria. Deputy Minister of Social Welfare Tina Pavlou announced the initiative at the Presidential Palace, noting that the plan carries a fiscal cost of €12.5 million and is scheduled to take effect on January 1, 2027, pending approval by the House of Representatives.

Once implemented, the reform is expected to benefit approximately 17,000 families and 23,500 children. Key adjustments include a 10% increase in benefits for families with annual incomes up to €22,000 and a 5% increase for those earning up to €44,000. Additionally, income thresholds for larger families will be significantly raised, reaching €90,000 for three-child families and €100,000 for families with four children. The proposal also addresses a long-standing systemic distortion that caused families to abruptly lose benefits following minor increases in household income.

The reform now moves to the House of Representatives for legislative review and final ratification. By broadening eligibility and adjusting income bands, the government aims to create a more stable and inclusive social welfare framework.