Cyprus government introduces bill to reform child allowance benefits

On September 24, 2026, the Cypriot government submitted a new bill to Parliament aimed at reforming the child allowance system. The proposed legislation seeks to increase benefit amounts for lower-income households and expand the eligibility income thresholds to account for inflation, as measured by the Consumer Price Index. The initiative is designed to include more families and mitigate the 'benefit cliff' effect, where families lose financial support due to marginal increases in annual household income.

Key changes include a 10% increase in benefits for families with incomes up to €22,000, and a 5% increase for those earning between €22,000.01 and €44,000. The structure introduces additional income tiers to ensure that reductions in benefits occur more gradually as household earnings rise. Under the new proposal, a single-child family earning up to €22,000 would receive €659 annually, while those earning up to €44,000 would receive €563, and those up to €54,000 would receive €479. The bill has been sent to the relevant parliamentary committee for further debate and legislative scrutiny.