Cyprus poverty risk is recorded at 15.8% of the population under the baseline scenario, according to a new study published by the European Commission’s Joint Research Centre (JRC).
The poverty risk figure for Cyprus is below the EU average of 16.4%, based on data from the Analysis of Risk of Poverty and Social Exclusion (AROPE).
Millions across the EU affected
The study shows that around 21% of the EU population, approximately 94 million people, were at risk of poverty or social exclusion in 2024.
This rate has remained broadly stable since 2018, despite ongoing EU-level policy efforts aimed at reducing the number of people in poverty by at least 15 million by 2030 under the European Pillar of Social Rights Action Plan.
Policy scenarios show different outcomes for Cyprus
The poverty risk rate in Cyprus varies significantly depending on policy interventions assessed in the study.
When minimum income systems are strengthened, the rate drops to 13.1%. Under expanded eligibility scenarios, it falls further to 11.7%, marking the most significant reduction.
In contrast, simulations involving increases in minimum wages show a more limited effect on poverty risk in Cyprus, with rates ranging from 15.1% to 15.6% depending on the reference thresholds.
Employment expansion scenarios also show only modest changes, keeping the indicator close to 15.4%–15.6%.
EU-wide policy challenges
The analysis highlights that individual policy tools have a limited impact when applied alone, as they target different population groups.
It also notes significant variation in minimum income coverage across EU member states, alongside issues such as non-take-up of benefits, which reduces policy effectiveness.
For example, in France, an estimated 34% of eligible recipients do not receive minimum income support.
Minimum wage and reform scenarios
The study also examines minimum wage reforms under EU Directive 2022/2041 on adequate minimum wages.
For Cyprus, the statutory minimum wage stands at €1,000, rising in alternative scenarios to €1,125 or €1,235 depending on the benchmark used.
Despite these adjustments, Cyprus’ poverty risk shows only limited change compared with stronger impacts seen under social protection measures.
Combined policies deliver stronger results
The JRC concludes that combined policy approaches – linking income support, wage policy and employment growth – produce the most significant reductions in poverty risk.
Across the EU, the AROPE rate could fall to 14.8% under integrated policy scenarios, while Cyprus could see a drop from 15.8% to as low as 11.7% depending on the measures applied.
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