Filenews 21 December 2025 - by Eleftheria Paizanou, Theano Thiopoulou
Two different worlds coexist today in the European Union when it comes to child benefit. On the one hand, states that treat the child as a collective social responsibility, providing universal support to all families without income criteria. On the other hand, countries that choose targeted aid, "filtering" beneficiaries based on income and property. Cyprus clearly belongs to the second category – and in strict terms. The restrictions in our country were put in place in 2012 when the collapse of the economy began and Cyprus was put in the memorandum of fiscal consolidation.
The conclusions emerge from a study by the Research, Studies and Publications Service of the Parliament, which maps the child benefit systems in the EU member states. The study was prepared at the request of AKEL MP, Nikos Kettiros, and highlights both the social choices and the political priorities behind the numbers.
Universal systems
According to the findings of the study, universal child support schemes are in place in Luxembourg, Germany, Finland, Sweden and Estonia. These systems focus on horizontal support for all families with children, regardless of financial status.
Allowances in universal schemes are paid monthly. For example, in Luxembourg the basic monthly amount is €307.35 per child, with additional increases depending on the age of the child, while in Germany the corresponding allowance amounts to €255 per month for each child, without income criteria.
Targeted formula
On the other hand, Greece, Portugal, Croatia and France adopt more selective forms of support, with income limits and differentiate according to the composition of the family and additional supplementary allowances for single-parent or large families.
The system in Cyprus
In our country, beneficiaries of child benefit are those who have assets up to €1.2 million. (except for a family with more than five dependent children) while family income and the number of children are also taken into account. Also, beneficiaries for receiving an allowance are families with an annual income of €49,000 and one child and €59,000 for families with two children. The allowance is increased by €5,000 for each additional child, while the income limit for families for more than five children does not apply.
Depending on the amount of income
In Cyprus, for incomes up to €19,500 (tax-free income, which will probably become 22,000 with the voting tomorrow Monday of the tax reform) the allowance for one child is €599 and for two children €718 per year, while for three children a monthly allowance of €1,317 is granted and for four children or more €2,111.
At the same time, for annual incomes from €19,501 to €39,000, for one child the allowance is €535 and for two children €655 per year. For three children and four children it is €1,254 and €1,922 respectively per month.
For incomes from €39,001 to €49,000, the annual allowance for one and two children is €478 and for three children €957 and for four children €1,588 per year. For annual incomes up to €59,000, beneficiaries are those who have two children who receive €434 per year, while for three children and four children the allowance is €869 and €1,430 respectively and is paid monthly.
Meanwhile, families with 3 or more children are treated more favourably, with higher income limits. Specifically, €64,000 for families with 3 dependent children, €69,000 for families with 4 dependent children and without any upper income limit when the family has 5 or more dependent children.
In Greece
In Greece, child benefit is paid every two months and is tax-free. For incomes up to €6,000, the allowance for one child is €70, for the second child the allowance is €70 and for the third child the allowance is €140 per child. For incomes up to €10,000, the allowances for both the first and second children are €42 and for the third child this is increased to €84 each.
For incomes up to €15,000, for the first two children it is €28 and for the third child it is increased to €56 per child. The amount is progressively increased for each additional child, enhancing the proportional nature of the allowance. For the third and each subsequent child, the amount of the allowance amounts to €140, €84 or €56 respectively, depending on the income category. In addition, additional social benefits are provided at local or sectoral level (e.g. reductions in fees, transport, support for large families).
Mixed model
In addition, in some EU countries, such as Italy and the Netherlands, a mixed model has been developed, combining a universal basic benefit with targeted supplements for specific social groups based on income criteria. In other words, in addition to the income requirements, in several Member States eligibility is influenced by additional social and family criteria, such as the age of the children, the composition of the family, the number of dependent children, as well as the custody status (relationship between applicant and child) or the existence of a disability. In addition, the legal and permanent residence of the applicant and the children in the country is a standard condition of eligibility in almost all Member States.
In the vast majority of Member States, the number of children is a crucial factor in increasing the allowance. Most countries provide for increased amounts for families with three or more children, either through a direct increase or through additional social aid (tax exemptions, housing allowances, childcare benefits, etc.).
Generous Hungary and Poland
In Hungary and Poland, demographic support is a strategic priority, with an integrated system of universal and targeted benefits that goes beyond the framework of simple child benefit.
In Hungary, one of the most generous and multi-layered models in Europe is being implemented. Indicatively, mothers with four or more children are exempt from income tax for life, new mothers up to 30 years of age enjoy full tax exemption, while there is a wide range of birth, care and housing allowances that link family policy with social housing and regional development. Similarly, in Poland, the universal program "Family 7 800+" provides for a monthly benefit of €185 for each child, regardless of income. The measure is complemented by one-off birth allowances, aid for the start of the school year and parental care benefits for children under the age of three, etc.
