President Nikos Christodoulides on Monday announced a €50 million tranche of measures aimed at tackling the “national challenge” Cyprus is facing with its ‘alarming demographic problem’, where fertility rates have dropped and women are giving birth older.
In a televised message, he said the government has a broader action plan amounting to €100m aimed at helping young couples enter the job market, support parents and encourage older individuals to stay in work.
The latest measures include extending parental leave for the second and third child, and a €200 monthly stipend for two years, for mothers under the age of 30.
Businesses with more than 100 employees will be subsidised with the cost of setting up a nursery and childcare centre, to meet the needs of working parents.
Where parental leave is concerned, the duration for the second child goes from eight weeks to 10, while for the third child, eight weeks to 12 on top of standard maternity leave.
“The demographic situation in our country is developing alarmingly, causing serious challenges.”
Christodoulides said in the past 20 years “the average fertility rate per woman has decreased, the average age of the mother giving birth to her first child has gone up, and the average life expectancy has also increased.”
Childbirth allowance is increasing from €628 to €1000 for the first child, €1500 for the second child and €2000 for the third child, he said.
Additionally, the government will begin piloting the extension of longer opening hours for nurseries and childcare centres until 7:30pm to better meet the needs of working parents.
Beneficiaries for parental leave are expanding by broadening the age limit of a child from the age of eight to 15.
The number of large families receiving child benefits will be expanded, as income and property criteria will be scrapped for those with five or more children.
Christodoulides said incentives will also be offered to rope in to the labour market unemployed youths, women, people over the age of 50, and students.
He described the demographic problem as a “major national challenge that requires the cooperation and mobilisation of the state and society”.
When the third tranche of measures is announced, they will be linked to major tax and pension reforms, as well as full-day schooling in primary schools.
“The demographic recovery of the country is a top national priority for us and I am confident that through the cooperation of the executive and legislative powers, the political forces, the social partners and, first and foremost, the Cypriot people, we will achieve this ambitious national goal.”
Previous measures include self-employed persons to be eligible for parental leave allowance, a housing subsidy scheme for young couples and individuals up to the age of 41, as well as subsidies for couples struggling with fertility that turn to IVF.
