Nicosia: More than a quarter of Cyprus' population falls into the lower income class while a small fraction belongs to the upper income class, as per recent statistics.
According to Cyprus News Agency, the 'Population by Income Class' publication for 2024, released by the Statistical Service, indicates that 27.8% of the population is part of the lower income class, with only 7.6% in the upper income class.
The report highlights that 14.6% of the population, approximately 139,930 individuals, are at risk of poverty, with their equivalised disposable income at or below the poverty-risk threshold of £12,400. The classification of income classes follows the OECD's methodology, categorizing households based on their income relative to the national median income. The national median income for 2024 is estimated at £20,666.
The lower income class, representing 27.8% of the population, has an equivalised disposable income at or below £15,500. The majority, 64.6%, belong to the middle income class, with a median income of £23,517, while the upper income class, constituting 7.6%, has a median income of £51,316.
Further breakdown shows that the middle income class is divided into three segments: lower-middle (22.2%), middle-middle (30.7%), and upper-middle (11.7%), each defined by specific income ranges. The data reveals that over 60% of the population has consistently belonged to the middle income class, except during post-economic crisis periods.
The employment status within these classes indicates that 36.6% of the lower income class are employed and 35.9% are pensioners. In the middle and upper income classes, 68.6% and 71.7% are employed, respectively.
Household composition varies across the income classes. A significant portion of the lower income class (56%) consists of households without children. In contrast, this figure is 45.9% for the middle class and 57.4% for the upper class. Households with one dependent child are more prevalent in the middle and upper classes.
Age distribution shows that in the lower income class, 30.5% are aged 65 and over, while in the middle and upper classes, the majority are adults of working age. Pensioners, children, and young people are also represented across the classes.
CYSTAT reports that the lower income class faces more challenges regarding mortgage or rent repayments, with 27% delaying payments in 2024, compared to 9.9% of the middle class and 3% of the upper class.