The Social Insurance Scheme ensures access to healthcare, income support, and pensions, with mandatory contributions for all employees and employers.
It covers all EU citizens and also long-term residents with legal status, and its main intention is to shelter those with higher risk of poverty and to guarantee the recipients with basic standard of living.
[1] Similar with conservative welfare states, Cyprus’s Minimum Income (MI) Law adopted the principle of subsidiarity, which means that family unit must serve as the first defending line for individuals.
To truly distribute benefits to those that need them the most, the Cyprus’s MI Law sets an age limit (above 28 years old) to eliminate young people who’re not earning much but are enjoying high standard of living with their parents from the list beneficiaries.
[6] It is notable that while Cyprus pension system do target various social groups, including the self-employed, its employees in private sector still are largely unsheltered.
[9] Even though the Cyprus pension programs have covered its population comparatively comprehensive, the replacement rate is still pretty low.