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Social Protection Expenditure
as a percentage of the GDP: 24,1% According to the results of the Social Protection Survey, which is based on the principles and rules determined by the European System of Integrated Social PROtection Statistics (ESSPROS) the social protection expenditure in Cyprus, as a percentage of the GDP, reached 24,1% in 2020, compared to 18,0% in 2019 (Chart 1), which corresponds to €5.283,4 million in 2020, compared to €4.168,0 million in 2019 (Table 1).  Distribution of social protection expenditure by function As it is indicated in Chart 2,
the most significant functions were those of old age and sickness/healthcare,
which combined, constituted 63,5% of the social protection benefits for 2020
(compared to 71,1% in 2019). The largest share of old age benefits (which
comprise both cash benefits, i.e., periodic pensions and benefits, and lump
sum benefits, as well as old age benefits in kind like housing, provision of
assistance in carrying out daily tasks and other benefits in kind), concerns
periodic pensions which amounted to €1.793,5 million and which constituted
90,5% of the total old age benefits. It is worth noting, that the €1.702,6
million of the periodic pensions that were granted to beneficiaries in 2020,
were non-means tested, i.e., without verification of the recipients’
financial situation (Table 2).  There was an increase in the
social benefits of the function of unemployment in 2020, which amounted to
€818,7 million (compared to €202,2 million in 2019), the function of old age
which amounted to €1.980,9 million (compared to €1.869,1 million in 2019),
the function of sickness/healthcare with the social benefits amounting to
€1.310,9 million in 2020 (compared to €1.028,8 million in 2019), the function
of survivors which amounted to €314,2 million in 2020 (compared to €298,0
million in 2019), the function of family with €273,5 million in 2020
(compared to €236,9 million in 2019), the function of social exclusion with
€243,6 million in 2020 (compared to €203,2 million in 2019) and the function
of housing which also had a small increase in 2020 with social benefits which
amounted to €79,7 million (compared to €73,8 million in 2019). On the
contrary, a small decrease in social benefits was recorded in the function of
disability in 2020, which amounted to €162,8 million (compared to €165,0
million in 2019), as presented in Table 3. Distribution of social protection benefits in ESSPROS categories Most of the social protection
benefits that were provided to beneficiaries in 2020 (88,5%), were non-means
tested benefits. Specifically, this accounts for €4.589,3 million in 2020
(Table 1). In most cases, the beneficiaries, having made cash contributions
to various insurance funds (e.g. the Social Insurance Fund), gain the right
to benefits, without their income being a criterion. In other words, most
social protection benefits are not explicitly or implicitly conditional on
the beneficiary’s income and/or wealth falling below a specified level.
Furthermore, most of the benefits in 2020 were cash benefits (€3.818,2
million), whereas benefits in kind constituted only 26,3% of the total of
social protection benefits (€1.366,1 million). As regards cash benefits,
84,6% (€3.231,7 million) were provided periodically, for example pensions and
other benefits, whereas lump sum benefits constituted 15,4% of the cash
benefits (Chart 3).  Distribution of social protection expenditure by scheme The Social Insurance Scheme is
the largest provider of social benefits in Cyprus with benefits of €1.643,4
million in 2020, representing a share of 31,1% of the total expenditure. The
contribution of the scheme of Other Governmental Social Protection is also
significant, with €1.315,9 million which represents a share of 24,9% of the
total expenditure. Then follows the General Healthcare System (GHS) with
€657,0 million and a share of 12,4%, the scheme of the Central Government
Health Services with €526,6 million and a share of 10,0%, the Civil Service
Social Protection with €496,0 million and a share of 9,4% and the
semi-autonomous Social Insurance Institutions with €362,3 million and a share
of 6,9%. Smaller rates were recorded in the remaining schemes as indicated in
Table 4.
Methodological notes Survey characteristics According to the relevant
Eurostat Manual, 2022 edition, the European System of Integrated Social
PRΟtection Statistics (ESSPROS)
provides a coherent comparison between EU and EFTA countries, of social
benefits to households and their financing. Social Protection encompasses all
interventions from public or private bodies intended to relieve households
and individuals of the burden of a defined set of risks or needs, provided
that there is not a simultaneous reciprocal or individual arrangement
involved (i.e., the beneficiary is not obliged to provide simultaneously
something of equivalent value in exchange). Goals of the survey The collection of these data
aims at the best possible presentation of the information, based on uniform
principles and rules that characterize ESSPROS and which are accepted in all
EU member states. The Survey on Social Protection conducted by the
Statistical Service and the publication of the results, contributes to the
drawing of useful conclusions pertaining to our country’s policy in this
sector, while the results may be exploited in the framework of policy making,
taking at the same time into consideration the current situation in the other
European countries. Coverage and data collection The survey covered all
organizations, services and insurance funds (autonomous or not) in Cyprus,
which offer benefits towards one or more of the Social Protection functions,
namely the function of disability, sickness, old age, survivors,
family/children, unemployment, housing and social exclusion. The collection
of the data for Social Protection takes place from administrative sources,
inter alia, the annual State Budget, selected Ministries’ annual reports, the
financial reports of organizations that concern social protection (for
example the Provident Funds and the Surplus Personnel Fund) and the financial
reports of NGOs. For the collection of additional data, the Statistical
Service conducted postal surveys, by sending questionnaires to
semi-governmental organizations, municipal authorities, Commercial and
Cooperative Banks, Trade Unions, Insurance Companies and to a sample of
private companies. Social Protection Schemes in Cyprus The basic methodology of
ESSPROS determines that the total of social benefits is provided through
different schemes or functions. These schemes are independent groups of rules
which offer social benefits and differ between countries, depending on the
structure and operation of the national social insurance system. The social
insurance system which is in operation in Cyprus has been classified into
eleven (11) schemes, according to the types and particularities of the
benefits. These schemes are: The Social Insurance Scheme comprises
the social benefits granted by the Department of Social Insurance Services of
the Ministry of Labour, Welfare and Social Insurance. Civil Service Social Protection: this scheme comprises the pension
protection of the Government, in its capacity as employer, towards civil
servants (pensions and retirement gratuities to all ex-staff of the Central
Government). Central Government Health Services: this scheme comprises the provision of
medical care and pharmaceutical products in public hospitals and the
provision of medical care abroad (where necessary). The services are provided
at reduced fee for certain groups of patients such as the elderly, the
unemployed, civil servants etc. Other Governmental Social Protection pertains to several types of benefits
provided by Ministries for the purpose of supporting the more vulnerable
population groups by relieving them of the burden of needs such as
disability, old age, family/children and social exclusion. Local Government schemes comprise the benefits provided by the local authorities
(municipalities and communities) both for their employees, in their capacity
as employer, and for their residents who may face need or risk. Semi-autonomous Social Insurance Institutions: this scheme comprises the collective
benefits provided by semi-governmental organizations for their employees, in
their capacity as employer, and the sum of benefits of the Provident Funds
provided for the employed persons, under the state’s supervision. Non-Governmental Organizations: this schemecomprises mainly benefits
addressing the functions of sickness, disability, old age and
family/children, provided by NGOs for their members and the rest of the
population. Labour Market Social Protection: this scheme comprises benefits of
semi-autonomous funds or organizations towards the support of employment and
the reduction of unemployment, under the state’s supervision. Employer as Provider of Social Protection
pertains to healthcare benefits provided by enterprises and
organizations of the private sector, for their employees. Housing: this scheme comprises public benefits for housing towards the
covering of needs of certain population groups, like refugees. General Healthcare System (GHS): it comprises a comprehensive national
healthcare system, which aims at offering equal and life-long access to
treatment in the private and public sector, and at providing high quality
healthcare to insured persons in Cyprus (based on the contributions of the
beneficiaries in question). For more information: CYSTAT Portal, theme Living
Conditions and Social Protection CYSTAT-DB (Online Database) Predefined Tables (Excel) Publications (Pdf) Contact Eleni Haperi: Tel.:
+35722602157, Email: ehaperi@cystat.mof.gov.cy Georgia Ioannou: Tel.:
+35722602144, Email: gioannou@cystat.mof.gov.cy (MG/IK) |
