Invalidity Pension in Cyprus
The persons who have lost more than 50% of their work capacity for at least 156 consecutive days (approximately 5-6 months) and who are expected to remain permanently incapacitated are entitled to receive an invalidity pension (also known as disability allowance). A person is considered incapable of work if he/she is unable to earn from an activity, which otherwise he/she could reasonable perform under normal circumstances, more than one-third of the amount which a healthy person can normally earn from the same occupation, having the same education and work experience. For persons between 60 to 63 years old the incapacity of work should result in losing more than half of that amount.
Who Can Apply for Invalidity Pension?
Beneficiaries of invalidity pension include only employed, self-employed and voluntary contributors working for a Cypriot Employer abroad. The invalidity pension / disability allowance can be claimed until the age of 63 (no minimum age stated) and the payment can be transferred abroad.
The disability allowance is paid if the following conditions are satisfied:
- the social insurance contributions have been paid for at least 156 weeks ( approximately three years) before the date of invalidity;
- the total amount of the social insurance contributions paid up to the date of invalidity is not less than 156 times the weekly amount of basic insurable earnings* (3 insurance points);
- the basic insurance contributions were paid or credited for at least 25% of years starting from the 5th of October 1964, or from 7th of January 1957 in case this is more profitable for the beneficiary, or starting from the age of 16 until one week before the individual becomes incapable of work.
- the paid or credited contributions on earnings in the previous year of the disability, or the average of the contributions in the last two years are not less than 20 times the weekly amount of the basic insurable earnings* (0.39 insurance point).
If someone becomes incapable of work as a result of an accident, then he/she needs to satisfy the same qualifying conditions as for sickness benefit in order to be entitled to invalidity pension.
How to Apply for Disability Pension?
The applications for invalidity benefit must be submitted to the nearest Social Insurance Service Office within three months from the date of occurrence. The application must contain the form for invalidity pension and the relevant medical certificates. Benefits are payable also abroad.
How Is the Invalidity Pension Calculated?
The invalidity pension consists of a basic pension and a supplementary pension calculated according to the degree of disability suffered. If the insured person suffered a total loss of earning capacity, he/she will be granted with a full invalidity pension, calculated as follows:
- the basic pension is 60% of the annual average basic covered earnings*, increased to 80%, 90% and 100% for one, two or three dependants respectively. For a married woman beneficiary, an additional of 10% of the annual average basic covered earnings is paid for each dependant child or other dependants (maximum 2 dependants). There is no entitlement to an increase for her husband unless he is incapable of supporting himself. The basic pension is calculated on a weekly basis.
- the weekly supplementary pension is 1.5% of the average weekly earnings which exceed the basic insurable earnings* and for which the person has paid contributions during his/her whole career. The person may also receive supplementary pension from other insurances (private or public) valid between the date of invalidity and the age of 63.
If the insured person suffered a partial loss of earning capacity, the invalidity pension is reduced as follows:
Loss of Earning Capacity
Entitlement to % of full pension
50% – 66.66%
66.67% – 75%
76% – 99%
Here are a few example of how the minimum partial invalidity pension is calculated weekly:
- A single person that suffered a loss of earnings capacity between 66.67%-75% will receive an invalidity pension of € 78.47 per week (75% x 60% x € 174.38).
- If the person above has:
- one dependant then his pension will be € 104.63 per week (75% x 80% x € 174.38);
- two dependants then his pension will be € 117.71 per week (75% x 90% x € 174.38);
- three dependants then his pension will be € 130.79 per week (75% x € 174.38).
In cases of partial invalidity the respective amounts are also multiplied by the degree of disability. There is no maximum pension established by law.
*The weekly amount of basic insurable earnings is €174.38 and is adjusted once a year according to the changes in wages. The maximum amount of covered earnings is €1,046.
The invalidity pension is received by the beneficiaries in thirteen payments (one every four weeks) a year. The benefits are adjusted each year in January and July according to changes in wages and prices. The insured contributors who receive invalidity pensions or who have been injured at work are all eligible for free medical treatment provided by Government hospitals and institutions. Persons whose invalidity pension is rated at 75% or less have the right to work for about 2 hours per day if the income generated from that work is less than 1/3 of the income earned during the last employment before becoming disabled.