The Social Protection Expenditure as a Percentage of the GDP stood at 19.2% in 2023, according to CySTAT.
In a press release, it says that 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 19.2% in 2023, compared to 20.6% in 2022 which corresponds to €6,232.2 million in 2023, compared to €6,116.4 million in 2022.
The most significant functions were those of old age and sickness/healthcare, which combined, constituted 76.3% of the social protection benefits for 2023 (compared to 76.1% in 2022). 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 €2,109.6 million and which constituted 83.5% of the total old age benefits.
CySTAT notes that the €1,986.3 million of the periodic pensions that were granted to beneficiaries in 2023, were non-means tested, i.e. without verification of the recipients’ financial situation.
There was an increase in the social benefits of the function of old age in 2023, which amounted to €2,525.3 million (compared to €2,391.6 million in 2022), the function of sickness/healthcare which amounted to €2,126 million in 2023 (compared to €2,095.4 million in 2022), the function of survivors with the social benefits amounting to €378.3 million in 2023 (compared to €360.2 million in 2022), the function of family with €283.2 million in 2023 (compared to €257.7 million in 2022), the function of disability with €193.2 million in 2023 (compared to €184.7 million in 2022) and the function of social exclusion with €234.9 million in 2023 (compared to €229.1 million in 2022).
On the contrary, a decrease in social benefits was recorded in the function of unemployment in 2023, which amounted to €246.3 million (compared to €265.9 million in 2022) as well as in the function of housing with social benefits which amounted to €108.4 million in 2023 (compared to €112.6 million in 2022).
Most of the social protection benefits that were provided to beneficiaries in 2023 (89.6%), were non-means tested benefits. Specifically, this accounts for €5,461.1 million in 2023. 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 2023 were cash benefits (€3,828.4 million), whereas benefits in kind constituted only 37.2% of the total of social protection benefits (€2,267.2 million).
As regards cash benefits, 80.7% (€3,089.3 million) were provided periodically, for example pensions and other benefits, whereas lump sum benefits constitute 19.3% of the cash benefits.
The Social Insurance Scheme is the largest provider of social benefits in Cyprus with benefits of €1,950.1 million in 2023, representing a share of 31.3% of the total expenditure. The contribution of the General Healthcare System (GHS) is also significant, with €1,459.1 million which represents a share of 23.4% of the total expenditure.
Then follows the scheme of Other Governmental Social Protection with €806 million and a share of 12.9%, the scheme of the semi-autonomous Social Insurance Institutions with €605.1 million and a share of 9.7%, the Central Government Health Services with €529.4 million and a share of 8.5% and the Civil Service Social Protection with €514.7 million and a share of 8.3%.
(Source: CNA)
