Cyprus considers social welfare measures to offset declining fertility rate

Feb 22 2007

Cyprus Minister of Labor and Social Insurance Antonis Vassiliou has announced the government is creating a series social welfare measures that might include paying couples who have three or more children $45,351 in an attempt to reverse the country's declining population, Agence France-Presse reports.

According to Agence France-Presse, Cyprus' fertility rate is estimated at 1.82 children per woman, well below the 2.1 children per woman needed to maintain the current population (Agence France-Presse, 2/15).

According to Australia's Daily Telegraph, many couples in the country have two children, for which they are given a tax allowance of about $1,135 annually (Daily Telegraph, 2/16).

"Our proposal is to offer a sum of [$45,351] for every third child and thereafter," Vassiliou said.

Another proposal being considered is to increase paid maternity leave from 16 weeks to at least 18 weeks, Agence France-Presse reports.

Vassiliou said that the government could afford to pay for the increased leave but that any further extension of paid leave would burden other government funds.

"We take into serious consideration all approaches to ensure that the economy can withstand the proposals," he said.

The package of measures will be put before the Cabinet for approval next week, Agence France-Presse reports (Agence France-Presse, 2/15).