STATE BENEFITS, SUPPORT ETC

 Filenews 2 January 2022 - by Pambos Charalambous

Insider's investigation into the type of benefits, aids and grants that the state pays to citizens. From sickness benefit and childbirth aids, to sponsorships, such as the recent one for the purchase of electric vehicles.

Cypriot citizens can benefit with a range of allowances, aids, as well as grants, depending on their family, employment and financial situation. Some of them have been institutionalized for many years, while others, such as some plans announced from time to time by the Republic of Cyprus, have an expiry date. Insider recorded 46 allowances, aids and sponsorships offered by the state today, listing some of the basic requirements and criteria that interested citizens must meet.

FAMILY

The allowances for the family in Cyprus concern the child and single-parent family allowance. Child benefit is granted to families with legal and continuous residence in Cyprus for at least the last five years. At the same time, single-parent families receiving child benefit are also entitled to the single-parent family allowance for each dependent child.

A single-parent family is considered to be a family where the parent, who does not live with a spouse/partner/person, lives with at least one dependent child born in or out of wedlock, and lives alone because he is unmarried, widowed or divorced, or because one of the parents is considered missing by the court or because he or she is serving a prison sentence of more than six months.

A family is entitled to child benefit if its annual gross income does not exceed:

• €49,000 for families with one dependent child

• €59,000 for families with two dependent children.

• €59,000 plus €5,000 per dependent child for families with more than two children

In addition, child benefit is not granted if the total value of family assets, such as real estate, shares, bonds, securities and deposits, exceeds €1,200,000.

MATERNITY

Maternity benefits in Cyprus cover maternity benefit, paternity allowance, childbirth allowance and special childbirth allowance for unwed mothers.

The maternity benefit is paid to insured employees, self-employed and voluntarily insured women in the service of a Cypriot employer abroad, who are expecting a child or have adopted a child with their spouse, aged up to 12 years, or have had a child through a surrogate mother. The benefit is paid for 18 weeks, starting between the ninth and second weeks before the week of the expected birth or for 16 weeks in the case of adoption or for 14 weeks in the case of surrogate mothers, starting two weeks before the week of the expected birth. In case of multiple births, an extension of four weeks per child is given to the 18-week period. In case of having a child through a surrogate mother, the benefit is paid for 18 weeks, starting two weeks before the week of the expected birth or from the week of the actual birth, depending on the choice of the applicant.

Paternity benefit is paid to all insured employees and self-employed persons, as well as to voluntarily insured men in the service of a Cypriot employer abroad, whose wife gave birth or has had a child through surrogacy or who have adopted a child. The benefit is paid for two consecutive weeks, starting between the week of confinement and the following 16 weeks or between the week of confinement and the completion of maternity leave in the event of multiple births for natural parents or between the week of adoption and the following 16 weeks in the case of adoption.

The childbirth allowance is paid additionally after the birth of each child, provided that the mother or her husband meet the insurance requirements or any other condition that may exist regarding the special childbirth benefit for unwise mothers.

The special childbirth allowance for unwed mothers is granted, under specific conditions, to female applicants who have not received the corresponding assistance from the Social Insurance Services.

 LONG-TERM SOCIAL CARE

The provision of long-term social care covers benefits (in cash and in kind) for home care, day care, institutional care and respite care.

Beneficiaries are all those who reside legally in Cyprus and receive the Guaranteed Minimum Income (GMI), as well as people who are not entitled to the GMI but do not have sufficient income to cover their needs for social care and meet all the requirements set by the legislation on UGS. The legislative framework (legislation on EIO) does not provide for mandatory periods of employment, contributions or economic activity.

ACCIDENTS AT WORK AND OCCUPATIONAL DISEASE

Benefits for accidents at work and occupational diseases relate to the allowance for personal injury (compensation for accidents at work or occupational diseases) and disability benefits.

Bodily injury benefit is granted to those who work as employees regardless of age. In order to pay the allowance, the worker should not be able to work as a result of an accident at work or an occupational disease and should not receive a full salary or remuneration from the employer during the period when he or she is not working.

Invalidity benefits are paid to workers for permanent injuries caused by an accident at work or an occupational disease. Invalidity benefits include the invalidity pension in the event that the medical advisor determines that the degree of disability caused by the accident is at least 20% or the disability benefit if the medical advisor determines that the degree of disability caused by the accident is between 10% and 19%. If the degree of disability is below 10% in the event of an accident, the employee is not entitled to any disability benefit. In the case of an occupational disease, the degree of disability from 1 to 19% is considered equivalent to 20%.

It is noted that there are no insurance conditions for the payment of bodily injury benefit or invalidity benefits. It is sufficient that the worker was an employee on the day on which the accident or occupational disease occurred and that the accident occurred while the worker was in office.

SICKNESS BENEFIT

Sickness benefit is paid to employed persons, to self-employed persons, as well as to voluntarily insured persons working for a Cypriot employer abroad, who are aged between 16 and 63 and are incapable of work. Persons who do not meet the insurance requirements for the granting of a statutory pension at 63 are entitled to receive benefit by the required date, but in no case after the age of 65.

INCOMPETENCE PENSION

The invalidity pension covers the basic and supplementary incapacity pensions, which are paid to insured employees and self-employed persons, as well as to those who are voluntarily insured with the service of a Cypriot employer abroad, who abstain from work for at least 156 days and appear to remain permanently incapable of work, e.g. they are unable to secure, in the context of an activity that they can theoretically carry out under normal conditions. conditions, an income of more than one third of the amount generally earned by a healthy person with the same level of education who pursues the same activity in the same area, or, in the case of persons aged between 60 and 63, to those who are unable to obtain an income exceeding 50 % of that amount.

 INCAPACITY BENEFITS

Supplementary benefits on grounds of invalidity shall cover:

• the severe motor disability allowance,
• care allowance for quadriplegic or paraplegic persons,
• the sponsorship of the blind,
• the movement allowance
• the plan to provide financial assistance for the acquisition of a wheelchair,
• the plan to provide financial assistance for the supply of wheelchairs,
• the plan to provide financial assistance to persons with disabilities for the supply of technical means, instruments and other aids;
• the grant scheme for organisations of persons with disabilities;
• the scheme to grant social escorts for adults with very severe disabilities.
• and the plan to provide the European disability card in Cyprus.

STATUTORY PENSION

The statutory pension and the lump sum of the statutory pension.

SURVIVORS' BENEFITS

Survivors' benefits cover the widow's pension, the orphanage allowance and the funeral grant.

MINIMUM GUARANTEED INCOME (UGS)

For the EIO, the applicant must be a citizen of the Republic of Cyprus, a citizen of the European Union, a national of a third country, who has the status of long-term resident in the Republic. Also, he must have, during the immediately preceding period of 5 years preceding the date of submission of the application, legal and continuous residence in the Republic. The beneficiary must maintain his/her legal and continuous residence in Cyprus throughout the period of receipt of the guaranteed minimum income, otherwise he/she ceases to be entitled to the benefit. In addition, the total income of the members of the family unit must be lower than the total needs assessed on the basis of the guaranteed minimum income. At the same time, neither the applicant nor any other member of the family unit can own immovable property worth more than €100,000. The applicant's privately owned residence is not taken into account, as long as it does not exceed 300 sq.m. The bank deposits of the applicant and any member of his/her family must not exceed €5,000, increased by €1,000 for each additional member of the family unit. The value of other monetary assets cannot exceed €5,000. It should be noted that any compensation received as a result of injury or injury caused by an accident is not taken into account. The monthly amounts corresponding to the living basket are: €480 for the applicant/beneficiary, €240 for the spouse and for each family member over the age of 14, €144 for each family member under the age of 14. The rent allowance is paid either when the beneficiary lives in a rented dwelling or in a privately owned dwelling for which he pays interest. The amount of the rent allowance is calculated according to the composition of the family and the district of residence.

SOCIAL PENSION

The social pension is intended to provide a pension to all residents of the Republic of Cyprus, who have reached the age of 65 and are not entitled to a pension or other similar payment from another source.

PENSIONERS WITH LOW INCOMES

The benefit is a measure of support for the households of pensioners whose total annual income is below the poverty line. The conditions for the benefit are as follows:

• Dependent children must be under the age of 18 (up to 23 years old for children who are full-time students/students, up to 25 years old for unmarried sons during the period of service in the National Guard or regardless of age, if the child is unmarried and suffers from a serious illness).

• The total household income should not exceed the poverty line. According to a survey by the Statistical Service, the poverty line for a household consisting of a single person is €10,324.

UNEMPLOYMENT BENEFIT

Unemployment benefit is paid to insured employees or to voluntarily insured persons working for a Cypriot employer abroad, aged between 16 and 63, who are unemployed. The age limit may be extended up to 65 years if the insured person is not entitled to a statutory pension. Self-employed workers are not entitled to unemployment benefit. An unemployed person who has exhausted his/her right to unemployment benefit (i.e., who has been paid an allowance for 156 days) can regain the right if, after exhaustion of his/her right, he/she works for at least 26 weeks and pays contributions, which in total are not less than 26 times the weekly amount of the basic insurable earnings. If the unemployed person is over 60 years of age and is not entitled to a pension under any occupational scheme, he/she can regain his/her right to unemployment benefit after having worked for at least 13 weeks instead of 26 and after having paid contributions on the insurable earnings, the total of which is not less than 26 times the weekly amount of the basic insurable earnings.

BUSINESS ACTIVITY IN BB

Beneficiaries of the sponsorship scheme "Support of New Business Activity (Youth and Women's Entrepreneurship) in Areas Within the British Bases" are:

• Young people, men and women who, for the last 6 months prior to the submission of their application, reside legally in areas within the British Bases or in areas where exclusive control is exercised by the Republic of Cyprus and want to operate within the British Bases and have free access to work.
• Unemployed or employed.
• Young and young people aged 18-29, men 30-50 and women 30-55.
• They did not conduct business during the last six months prior to the submission of their application, i.e. they were not self-employed or did not have a participation in an active business of more than 25%.

The intensity of the sponsorship is 70% for young people aged 18-29 while for men aged 30-50 and women aged 30-55 the intensity of the sponsorship will be 60%. The grant is calculated on the cost of the eligible costs of the investment (equipment, buildings – purchase, buildings – construction, buildings – renovation / landscaping, promotion- promotion) with a maximum eligible budget per business of €120,000 for activities related to manufacturing, services, e-commerce and tourism.

BUSINESS ACTIVITY

Beneficiaries of the project "Strengthening New Business Activity (Youth and Female Entrepreneurship)" are:

• Young people, men and women who have been legally residing in areas where sole control has been exercised by the Republic of Cyprus for the last six months and have free access to work.
• Unemployed or employed
• Young people aged 18-29, men 30-50 and women 30-55
• They did not conduct business during the last six months prior to the submission of their application, i.e. they were not self-employed or did not have a participation in an active enterprise beyond 25%

The intensity of the sponsorship is 70% for young people aged 18-29 while for men aged 30-50 and women aged 30-55 the intensity of the sponsorship will be 60%. The grant is calculated on the cost of the eligible costs of the investment (equipment, buildings – purchase, buildings – construction, buildings – renovation / landscaping, promotion- promotion) with a maximum eligible budget per business of €120,000 for activities related to manufacturing, services, e-commerce and tourism.

THERMAL INSULATION AND PHOTOVOLTAICS

For the Sponsorship Scheme to encourage the use of Renewable Energy Sources and Energy Saving in homes for the year 2021, natural persons are beneficiaries. The Plan provides sponsorship for thermal insulation of ceilings, installation of photovoltaics or a combination of the two in existing residences. Specifically, the categories of the project are the following:

• Thermal insulation of roofs of existing residences: It is provided for a 30% sponsorship of the eligible costs of each application, with a maximum grant amount per application of €1,500.
• Thermal insulation of the roofs of existing residences in combination with the installation of a photovoltaic system with the method of net metering: It provides for a 35% sponsorship of the eligible costs for the thermal insulation of the roof with a maximum sponsorship amount of €1,800 and funding of €300 per installed kW of photovoltaic system with a maximum sponsorship amount of €1,200. The maximum amount of sponsorship per application can be up to €3,000.
• Installation of a photovoltaic system with the method of net metering in existing residences. The amount of the sponsorship is €250 per installed kW photovoltaic system, with a maximum sponsorship amount of €1,000 (CATEGORY 3A). The amount is increased to €750 per installed kW of photovoltaic, for the homes of vulnerable consumers, with a maximum sponsorship amount of €3,750.

The amount of the grant is doubled for the facilities that take place in houses that fall in mountainous areas, within the framework of the National Strategy for the Development of Mountain Communities.

SOLAR SYSTEMS

For the Sponsorship Scheme for the installation or replacement of solar systems for the production of hot water in residences for the year 2021, natural persons are entitled to the beneficiaries. Specifically, the categories of the project are the following:

• Installation or replacement of an integrated solar water heating system (cylinder and solar panels). The sponsorship amount is €350.
• Installation or replacement of solar panels only. The sponsorship amount is €175.

And in this case the amount is doubled for dwellings that fall into the mountainous areas.

SAVE – UPGRADE

For the plan, natural persons living in dwellings erected in areas that are within the British Bases have the right to apply. An exception is the cases of energy upgrading of apartment buildings, for which a single application must be submitted by an authorized representative of the Management Committee of the apartment building, which will act on behalf of all owners.

The intensity of the sponsorship amounts to 60% of the approved budget of each application and can cover expenses related to thermal insulation of the house shell, replacement of frames, installation of shading systems as well as the installation and / or replacement of technical systems (such as solar, photovoltaic, air conditioners, storage batteries, control systems, etc.). For the homes of vulnerable consumers, the intensity of sponsorship increases to 80%.

CHARGING CARS

The project "Installation/expansion of photovoltaic systems and installation of smart meters in homes for charging an electric vehicle or a plug-in hybrid vehicle" concerns Natural Persons who cumulatively meet the following conditions:

• the electricity bill of the house is issued in their name.
• either they themselves or another person who resides permanently with them and has a first-degree affinity with them, they are owners of an electric or hybrid plug-in type vehicle. For the purposes of this project, the first degree of kinship includes: Parents, children, spouse, father-in-law(s), groom/bride.
• In their residence there was installed or installed PV system with the method of net-metering.

ENERGY AUDITS IN SMES

The share of public funding is 30% of the cost of energy audit. The maximum amount for each SME can be up to €2,000. It is expected that SMEs that will carry out an energy audit using the provisions of this plan, will proceed to the implementation of the energy saving investments proposed by the energy audit, using other financial tools.

REPLACEMENT OF ELECTRICAL APPLIANCES

The plan is aimed at vulnerable households, who wish to replace electrical appliances provided for by the plan, with new ones with high energy efficiency. Sponsorships range from €300 to €600, depending on the device. Eligible appliances are refrigerators/refrigerator-freezers, washing machines and air conditioners. Beneficiaries can replace up to five appliances, namely up to three air conditioners, a washing machine and a refrigerator. The plan falls under the government's compensatory measures to stem the rise in the price of electricity.

WITHDRAWAL OF POLLUTING VEHICLES

The "Plan for the Withdrawal of Polluting Vehicles and The Granting of Incentives for Alternative, Low-Emission Ways of Transportation", concerns the sponsorship for the withdrawal of vehicles from circulation and:

• replacing them with new low-carbon vehicles (with a CO2 emission limit of 50g/km), or
• the purchase of an electric bicycle, or
• the granting of bus tickets.

Vehicles that can be withdrawn must be of the category of saloon, van or double-cab, must have been registered in Cyprus for the last seven consecutive years and their date of manufacture must be more than 12 years old. The vehicle in question must also be registered in force or declared immobilised with a valid registration certificate within the last 18 months and must not have a cancelled registration on the day on which applications start.

The amounts that will be allocated for the purpose of withdrawing an old vehicle and replacing it with a new vehicle range from €7,500 to €12,000. Regarding the withdrawal of an old vehicle and its replacement with a new electric bicycle, the subsidy amounts to €1,000, while for the withdrawal of an old vehicle against the provision of free tickets for use on regular bus lines, the grant will be €750.

ELECTRIC VEHICLES

The "Grant Scheme for the Purchase of Electric Vehicles" concerns the sponsorship for the purchase of electric vehicles or the purchase of an electric bicycle (assisted pedaling), in the form of a "ecological reward" for the purchase of zero-carbon vehicles (pure electric vehicles), with the simultaneous optional, subsidized withdrawal of old vehicles. The amounts that will be allocated for the purpose of purchasing a new electric vehicle range from €9,000 plus €1,000 with the simultaneous withdrawal of an old vehicle, to €19,000 plus €1,000 with the simultaneous withdrawal of an old vehicle.

Specifically, for private vehicles, a grant of €9,000 plus €1,000 for simultaneous withdrawal will be provided, for taxis €19,000 plus €1,000 for simultaneous withdrawal, and for disabled or large family vehicles the grant will be €11,000 plus €1,000 for the withdrawal of an old vehicle.

The option of subsidizing a used electric vehicle will also be provided and for this purpose the amounts to be allocated are from €4,000 plus €1,000 with the simultaneous withdrawal of an old vehicle, up to €12,000 plus €1,000 with the simultaneous withdrawal of an old vehicle. While for the purchase of a new vehicle that will be used as a taxi, the subsidy will be €19,000 plus €1,000 with simultaneous withdrawal. Professionals in the field will also be able to be subsidized for the purchase of a used electric taxi vehicle for the amount of €12,000 plus €1,000 with the simultaneous withdrawal of an old vehicle. The subsidy for the purchase of a used electric vehicle for use by a large family or by the disabled amounts to €7,000 plus €1,000 with the simultaneous withdrawal of an old vehicle.

The plan also provides for the following: the purchase of a new electric large bus with an amount amounting to €100,000, the purchase of a new electric minibus with an amount of €40,000, the purchase of a new electric commercial vehicle with an amount of €20,000, as well as the purchase of a new electric bicycle or four-wheeled micro-car, or a moped, or a tricycle, or a motorcycle or a light quadricycle vehicle.

STUDENT SPONSORSHIP

Student sponsorship is granted, under certain conditions, on the basis of income and property criteria which are:

• A student's family, whose annual gross family income does not exceed €59,000.00, when she has up to two dependent children, has the right to student sponsorship.
• For families with more than two dependent children, the annual gross family income may exceed €59,000.00 by €5,000 for each additional child beyond the second.
• A family whose total value of its assets does not exceed €1,200,000 has the right to student sponsorship. For the calculation of the assets, the financial data of the family at current prices (e.g. deposits, shares, securities, bonds) and the immovable property of the family at prices of 1.1.2013, as calculated by the land registry of the state, are taken into account.

In addition to the above criteria, among others, student sponsorship is granted if the following conditions are met:

• It is granted to a student's family whose members during the five years prior to the beginning of the studies for which state student care is requested resided permanently and legally in the areas controlled by the Republic, for a period of at least fifty months.
• It is granted for the acquisition of a single degree in each cycle of studies (undergraduate or postgraduate cycle of studies). In the case of a student who will obtain more than one degree in each cycle, a total student grant is paid corresponding to the duration required for the acquisition of the last degree, provided that the last degree he/she will obtain is of a higher academic level than the previous degree he/she has already obtained in the same course of study.