According to the publication “Population by Income Class” for 2024, released by CySTAT, 27.8% of Cyprus’ population falls into the lower income class, while 7.6% belongs to the upper income class.
At the same time, 14.6% of the population, corresponding to 139,930 people, lives at risk of poverty, as their equivalised disposable income is equal to or below €12,400, which is the monetary poverty-risk threshold.
Based on the methodology recommended by the OECD, the “middle income class” is defined as the share of the population living in households with incomes ranging between 75% and 200% of the national median income. The population living in households with incomes above 200% of the national median income belongs to the “upper income class,” while the population with incomes below 75% of the national median income belongs to the “lower income class.”
The national median income for 2024 is estimated at €20,666. The 27.8% belonging to the lower income class has an equivalised disposable income equal to or below €15,500. The 64.6% of the population belonging to the middle class has a median equivalised disposable income of €23,517, while the 7.6% belonging to the upper income class has a median equivalised disposable income of €51,316.
The middle income class is divided into lower-middle, middle, and upper-middle segments. The lower-middle class accounts for 22.2%, with equivalised disposable income ranging between €15,501 and €20,666. The middle-middle class accounts for 30.7%, with equivalised disposable income between €20,667 and €30,999. The upper-middle class comprises 11.7%, with equivalised disposable income between €31,000 and €41,332.
According to CySTAT, over time the largest share of the population has consistently belonged to the middle income class, remaining above 60%, with the exception of the years following the economic crisis. In 2024, 64.6% of the population belonged to the middle income class.
Of those included in the lower income class, 36.6% are employed and 35.9% are pensioners. Correspondingly, in the middle income class, 68.6% are employed and 14% are pensioners, while in the upper income class, 71.7% are employed and 14.3% are pensioners.
Regarding household composition, 56% of the lower income class consists of households without children. The corresponding proportions for the middle and upper income classes are 45.9% and 57.4%, respectively. Households with one dependent child account for 11.9% of the lower income class, 20.5% of the middle class, and 21.2% of the upper class. Households with two dependent children make up 18.4% of the lower class, 24.2% of the middle class, and 18.9% of the upper class. Households with three or more dependent children account for 13.7% of the lower class, 9.4% of the middle class, and 2.5% of the upper class.
In terms of age, 30.5% of the lower income class are aged 65 and over, 18.1% are children, and 13.1% are young people. Adults of working age account for 38.3%. In the middle income class, the majority are adults of working age (53.6%), with 18.7% children, 15.5% young people, and 12.2% pensioners. In the upper income class, adults of working age account for 59.5%, pensioners for 16.3%, children for 13.9%, and young people (aged 18–29) for 10.3%.
According to CySTAT, over time, the highest proportion of individuals living in households that have fallen behind on repayments of mortgage instalments for their main residence or rent is found among the lower income class. In 2024, 27% of the lower income class delayed such payments, compared with 9.9% of the middle income class and 3% of the upper income class.
(Source: CNA)
