Paphos info-file

Social Security

Old-age insurance: Beneficiaries and conditions for entitlement 

The old age pension is payable to all insured persons, regardless of whether they have been employed persons or self-employed persons or voluntary contributors.

Requirements:

  • the insured person must have reached the pensionable age of 65
  • three years must have passed between the date when the person became insured and the date on which he reached pensionable age, and in that period the person must have paid contributions in the lower insurable earnings division on earnings totalling not less than 156 times the weekly basic insurable earnings amount
  • average weekly insurable earnings paid or credited in the lower insurable earnings division equal to not less than 1/4 of the average weekly insurable earnings amount from 5 October 1964, or from 7 January 1957 if that is more advantageous to the insured person, or from the time at which he reached the age of 16, up to the final week before the week in which the person reached the pensionable age

However, an insured person is entitled to take the old-age pension on reaching the age of 63 if:

  • he satisfies the contribution requirements explained above and has been insured for a period of time at least equal to 70 per cent of the duration of the full insurance period
  • would be entitled to an invalidity pension if he had not reached the age of 63
  • An insured person may request that the commencement of payment of the pension be deferred until he reaches the age of 68. In such cases, the pension is increased by 0.5 per cent for each calendar month of the period of deferment.

The old-age pension is comprised of a basic pension and a supplementary pension. The weekly amount of the basic pension is calculated on the basis of the average weekly insurable earnings paid and credited in the lower insurable earnings division. The amount of the basic pension equals 60 per cent of the said average weekly insurable earnings for a beneficiary with no dependants, 80 per cent for a beneficiary with one dependant, 90 per cent for a beneficiary with two dependants and 100 per cent for a beneficiary with three or more dependants. A female beneficiary is not paid the increase in the pension for a dependent spouse; she is paid only the increase for dependent children and other dependants (up to a maximum of two dependants). The amount of the increase in the pension for children and other dependants equals 1/6 of the basic pension amount for each dependant. The weekly amount of the supplementary pension equals 1/52 of 1.5 per cent of the total insurable earnings of the beneficiary paid or credited in the higher insurable earnings division. The total pension (basic and supplementary) may not be less than 85 per cent of the basic pension that would be paid to a beneficiary with full insurance under the basic part of the scheme.

A 13th pension, equal to 1/12 of the pension paid for the whole year, is paid in December every year. The pensions are adjusted every year on the basis of the increase in the general level of wages/salaries and inflation.

The minimum monthly amount of the pension in 2006 is £163.05 for a beneficiary with no dependants, £217.33 for a beneficiary with one dependant, £244.50 for a beneficiary with two dependants and £271.67 for a beneficiary with three or more dependants. Payment of the old-age pension begins from the day on which the insured person acquires entitlement to it and continues for the rest of the person's life.

In order to be paid the old-age pension, the insured person must submit an application on a special form which can be obtained from any social insurance office and from the website of the Social Insurance Services. The application, together with all the necessary certificates stated in the form, must then be delivered to the nearest social insurance office.

Time Limit for Submission of the Application

The application must be submitted within three months of the day from which payment of the pension is requested. Where an application is submitted late, the pension is paid retrospectively only for three months. However, in exceptional circumstances, where the claimant shows that there was a good reason for the delay in the submission of the application, the pension may be paid retrospectively for a period of up to 12 months.

A person who is not satisfied with the decision of the Department of Social Insurance concerning his application can challenge the decision by addressing an appeal to the Minister for Labour and Social Insurance within 15 days of receiving notification of the decision.

If the claimant is not satisfied with the decision of the Minister, he can lodge an appeal with the Supreme Court within 75 days of receiving notification of the Minister's decision.

For further information contact the Social Insurance Services at 7, Byron Avenue, 1465 Nicosia, tel. 22 401772/685 – International Affairs and EU Branch (for coordination of social insurance systems between EU Member States), or visit the website of the Social Insurance Services.

Further Information

  • Social Insurance Services
    At    : 7 Byron Avenue, 1465 Nicosia
    Tel: 22 401772/685
  • International Affairs and EU Branch, for coordination of social insurance systems between EU Member States

Life insurance (survivors' pensions): Beneficiaries and conditions for entitlement

The widow's pension is paid to the widow of an insured man who was an employed or self employed person or a voluntary contributor, provided that she was living with her husband prior to his death, or, if they were not living together, was being maintained by him. The widower of an insured woman is likewise entitled to a widower's pension if he is permanently incapable of maintaining himself and was being maintained by his wife prior to her death.

Requirements

The deceased husband or wife must have been entitled to an old age pension or invalidity pension on the day of his/her death.

Where the deceased husband or wife was under pensionable age on the day of the death:

  • three years must have passed between the day the deceased husband or wife became insured and the day of his death, and in that period he must have paid contributions in the lower insurable earnings division on earnings totalling not less than 156 times the weekly basic insurable earnings amount and
  • average weekly insurable earnings equal to not less than 1/4 of the average weekly insurable earnings amount from 5 October 1964, or from 7 January 1957 if that is more advantageous to the widow or widower, or from the time at which the spouse reached the age of 16, must have been paid or credited in the lower insurable earnings division up to the final week before the spouse's death.
  • Where the death of the spouse was caused by any form of accident:
  • at least 26 weeks must have passed between the day when the deceased spouse became insured and the day of his death, and in that period he must have paid contributions on insurable earnings totalling at least 26 times the weekly basic insurable earnings amount
  • the deceased spouse must have been paid or credited with insurable earnings in the previous contributions year totalling not less than 20 times the weekly basic insurable earnings amount

Life insurance is comprised of basic insurance and supplementary insurance. The weekly amount of the basic life insurance is calculated on the basis of the average weekly insurable earnings paid and credited to the deceased spouse in the lower insurable earnings division. The basic life insurance equals 60 per cent of the said average weekly insurable earnings for a beneficiary with no dependants, 80 per cent for a beneficiary with one dependant, 90 per cent for a beneficiary with two dependants and 100 per cent for a beneficiary with three or more dependants. The weekly amount of the supplementary life insurance equals 1/52 of the annual supplementary life insurance which is equal to 60 per cent of 1.5 per cent of the total insurable earnings of the husband/wife paid or credited in the higher insurable earnings division. The total life insurance (basic and supplementary) may not be less than 85 per cent of the basic life insurance that would be paid to the widow or widower if the deceased spouse had had full insurance under the basic part of the scheme.

For the purposes of calculating the amount of the life insurance, the insured person's insurable earnings are revalued on the basis of the applicable basic insurable earnings amount on the day of his death.

A 13th life insurance amount, equal to 1/12 of the insurance paid for the whole year, is paid in December every year. The life insurance amounts are adjusted every year on the basis of the increase in the general level of wages and salaries and inflation. In 2006 the minimum amount of the life insurance is £163 for a beneficiary with no dependants, £217.33 for a beneficiary with one dependant, £244.50 for a beneficiary with two dependants and £271.67 for a beneficiary with three or more dependants.

Payment of life insurance begins from the date of the death of the deceased spouse and continues for the rest of the surviving spouse's life or until she / he remarries. In the latter circumstance, the widow(er) is paid a lump sum equal to the life insurance amount of one year, but without the increase for dependants.

In order to be paid life insurance, the widow or widower must submit an application on a special form which can be obtained from any social insurance office and from the website of the Social Insurance Services. The application must be accompanied by all the necessary certificates stated in the application form and be delivered to the nearest social insurance office.

The application must be submitted within three months of the day of the spouse's death. In the case of a late application, the life insurance is paid retrospectively only for three months. However, in exceptional circumstances, where the claimant shows that there was a good reason for the delay in the submission of the application, it may be paid retrospectively for a period of up to 12 months.

An insured widow who is receiving life insurance is entitled also to receive any other pension or allowance to which she is entitled on the basis of her own contributions.

A person who is not satisfied with the decision of the Department of Social Insurance concerning his application can challenge the decision by addressing an appeal to the Minister for Labour and Social Insurance within 15 days of receiving notification of the decision.

Further Information

  • Social Insurance Services
    At    : 7 Byron Avenue, 1465 Nicosia
    Tel: 22 401772/685
  • International Affairs and EU Branch, for coordination of social insurance systems between EU Member States
  • Text last edited on: 06/2006

Unemployment benefits: Beneficiaries and conditions for entitlement 

Unemployment benefit is payable to insured employed persons and to voluntary contributors working abroad for a Cypriot employer. Insured persons under 16 and over 63 years of age are not entitled to employment benefit. The ceiling of 63 years of age is raised to 65 when the insured person is not entitled to an old-age pension.

An insured person may claim unemployment benefit for days when he is unemployed, able to work and willing to accept suitable employment. The benefit is also payable to unemployed insured persons who attend any vocational training course. An insured person is not considered to be unemployed:

  • on days when he is unable to work because of sickness
  • on Sundays
  • when on holiday
  • on any days on which he works in any additional occupation that was engaged in along with the former usual employment, and he receives earnings equal to at least 1/12 of the basic insurable earnings amount (£6.66 per day in 2006)
  • on any day for which the employer pays his earnings

Requirements

    • At least 26 weeks must have passed between the day when the person became insured and the day on which he became unemployed, and in that period he must have paid contributions on earnings totalling at least 26 times the weekly basic insurable earnings amount
    • The person must have been paid or credited with insurable earnings in the previous contributions year totalling not less than 20 times the weekly basic insurable earnings amount

When an employed person becomes unemployed, unemployment benefit is paid from the fourth day of unemployment. In the case of a voluntary contributor who was working abroad for a Cypriot employer, the benefit becomes payable after the first 30 days of unemployment. The benefit is payable for 156 working days in each period of interruption of employment.

An insured person whose entitlement to unemployment benefit runs out regains the entitlement after working and paying contributions on earnings totalling at least 26 times the weekly basic insurable earnings amount and after at least 26 weeks have passed from the last day for which he was previously paid the benefit.

An unemployed person who is over 60 years of age and not entitled to any form of occupational scheme regains the entitlement to unemployment benefit after working and paying contributions on earnings totalling at least 26 times the weekly basic insurable earnings amount and after at least 13 weeks have passed from the last day for which he was previously paid the benefit.

The amount of the unemployment benefit is determined on the basis of the insured person's average weekly insurable earnings paid and credited in the previous contributions year.

Unemployment benefit is comprised of a basic benefit and a supplementary benefit. The weekly amount of the basic benefit is equal to 60 per cent of the weekly average of the beneficiary's basic insurable earnings in the previous year. It is increased by one third for the main dependant or spouse and by one sixth for each child or other dependant (up to a maximum of two dependent children and other dependants). The increase for the main dependant/spouse is paid only when the income of the main dependant/spouse from his/her employment or the amount of the benefit which the main dependant/spouse can receive from the Social Insurance Fund does not exceed the amount which corresponds to the increase in the benefit for dependants. Where both spouses are entitled to the benefit at the same time, the increase for dependants is paid only to the spouse who is entitled to the higher increase of benefit. The weekly amount of the supplementary benefit is equal to 50 per cent of the average weekly insurable earnings of the beneficiary in excess of the basic insurable earnings. However, in no circumstance is the supplementary benefit higher than the weekly basic insurable earnings amount.

In order to claim the benefit, an unemployed person must attend in person at the nearest social insurance office and sign the unemployment register. The claimant has to attend for the purpose of signing the register at regular intervals which are fixed by the social insurance office.

Loss of Benefit

The claimant loses the entitlement to unemployment benefit for up to six weeks if he:

  • was to blame for losing his job or left the job voluntarily without good cause
  • refuses or neglects to submit an application for suitable work or to accept an offer of suitable work
  • fails to take advantage of an opportunity for suitable work
  • refuses or neglects without good reason to comply with instructions issued by the Director of Social Insurance to attend a course of vocational training

An insured person has no entitlement to unemployment benefit for days on which he does not work because of a strike due to an industrial dispute.

A person who is not satisfied with the decision of the Department of Social Insurance concerning his application can challenge the decision by addressing an appeal to the Minister for Labour and Social Insurance within 15 days of receiving notification of the decision.

Further Information

  • Social Insurance Services
    At    : 7 Byron Avenue, 1465 Nicosia
    Tel: 22 401772/685
  • International Affairs and EU Branch, for coordination of social insurance systems between EU Member States.

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