Nicosia, Cyprus. Cyprus’ Guaranteed Minimum Income (GMI) scheme provides financial support to around 17,000 families, covering about 22,000 people in total. The programme has drawn criticism from some who say it may discourage job-seeking, particularly among younger people.
How GMI is calculated
GMI, established in 2014, operates on the gap between needs and income, according to Christos Diomedous, press officer of the Welfare Benefits Administration Service.
Income can include salary, pension, unemployment benefit and other sources. Basic monthly needs are assessed at €480 for the applicant, plus €240 for a spouse, plus €240 for each unmarried child aged 14 to 28, and €144 for each child under 14.
Housing allowance and regional differences
The scheme also includes a housing allowance. Diomedous said that if recipients are renting, they may be entitled to more support, based on a formula that accounts for the person and the district.
The housing allowance is around €200-250 depending on the city, with Limassol being the most expensive.
Eligibility rules
Cypriot and EU citizens, permanent residents and recognised refugees may be eligible, though asylum seekers are not included.
If an applicant is married, a single parent, an orphan, or has a disability, there is no age requirement; otherwise, applicants must be over 28.
Examples of benefit amounts
A young couple with two children under 14 could be eligible for €1,008 in basic needs, plus the rent allowance, if neither parent is working.
By comparison, in a scenario where one parent works a minimum-wage job while the other stays home, the household would receive a gross salary of €1,088, a similar amount. The article notes that the GMI option leaves recipients with more free time, including the possibility of informal work.
An unmarried 29-year-old living with parents rent-free and not working could still be eligible for €480 a month in basic needs.
How earnings affect support
Salary is not deducted in full from the GMI calculation. The first €170 of gross salary is not taken into account, rising to the first €512 for those with a disability.
Under this rule, the article describes a scenario in which a recipient could earn €170 a month from part-time work and still receive €480 in basic needs, for a total of €650.
Do you think the GMI benefit structure affects whether people choose to enter the job market?