Nicosia: The Social Protection Expenditure as a Percentage of the GDP in Cyprus was reported at 19.2% in 2023, as revealed by the Statistical Service of Cyprus.
According to Cyprus News Agency, the Social Protection Survey, based on the European System of Integrated Social Protection Statistics (ESSPROS), indicated a decrease from 20.6% in 2022, with expenditures amounting to £6,232.2 million in 2023 compared to £6,116.4 million in the previous year.
The primary functions, old age and sickness/healthcare, accounted for 76.3% of the social protection benefits in 2023, slightly up from 76.1% in 2022. Old age benefits, primarily periodic pensions, reached £2,109.6 million, representing 83.5% of total old age benefits.
The Statistical Service noted that £1,986.3 million of the periodic pensions were non-means tested in 2023, indicating no requirement for financial situation verification for recipients.
There was an upsurge in social benefits for old age, which totaled £2,525.3 million in 2023, up from £2,391.6 million in 2022. Similarly, the sickness/healthcare function increased to £2,126 million, and benefits for survivors, family, disability, and social exclusion also saw increases.
Conversely, there was a decline in unemployment benefits, which stood at £246.3 million in 2023, down from £265.9 million in 2022, and housing benefits, which decreased to £108.4 million from £112.6 million in 2022.
In 2023, 89.6% of the social protection benefits were non-means tested, totaling £5,461.1 million. Most beneficiaries qualified through contributions to insurance funds rather than income criteria. Cash benefits dominated, comprising £3,828.4 million, while benefits in kind made up 37.2% of the total at £2,267.2 million.
Cash benefits were predominantly periodic, constituting 80.7% (£3,089.3 million), with lump sum benefits making up 19.3%.
The Social Insurance Scheme emerged as the largest provider, with benefits of £1,950.1 million, accounting for 31.3% of total expenditure. The General Healthcare System followed with significant contributions of £1,459.1 million, representing 23.4% of the total.
Other notable contributors included the Other Governmental Social Protection scheme, semi-autonomous Social Insurance Institutions, Central Government Health Services, and Civil Service Social Protection, each holding varying shares of the expenditure.