Nicosia: Cyprus records a 15.8% rate of population at risk of poverty or social exclusion in the baseline scenario, according to a European Commission Joint Research Centre (JRC) study on poverty reduction in the EU. The EU average in this scenario is 16.4%, indicating that Cyprus is below the EU average. In 2024, approximately 21% of the EU population, or about 94 million people, was at risk of poverty or social exclusion, a level that has remained broadly stable since 2018.
According to Cyprus News Agency, the study examines policy scenarios combining minimum income systems, minimum wages, and employment growth. In Cyprus, efforts to strengthen minimum income systems reduce the rate to 13.1%, while expanding coverage further lowers it to 11.7%. Conversely, increases in the minimum wage have a limited effect, with the rate ranging between 15.1% and 15.6%. Employment expansion also shows modest changes, maintaining a rate around 15.4%-15.6%.
At the EU level, the analysis finds that combining policy tools produces stronger reductions in poverty than applying each measure separately. The EU average could potentially fall from 16.4% in the baseline to 14.8% under combined policies. Overall, Cyprus exhibits variation from 15.8% in the baseline scenario to 11.7% under the strongest social protection scenario.