Almost 14% of the population living in households in 2023 at risk of poverty

Almost 14% of the population living in households were in 2023 at risk of poverty in Cyprus.

According to data published on Thursday by the Statistical Service of Cyprus, 13.9% of the population living in households or 127,236 people were “at risk of poverty” in 2023 as their equivalent disposable income was equal or below pound 11,324, per year.

A 28.0 percent of the population or 256,951 people were in the “lower income class” in 2023, with an equivalent disposable income of less than pound 14,155 per year. In 2022, 29.4% were in the “lower income class” and in 2021 it was 27.4%.

In 2023 64.1% of the population or 587,144 people were in the ‘middle income class’ (63.1% in 2022 and 64.5% in 2021) with the equivalent disposable income ranging from pound 14,156 to pound 37,746, per year, while 7.9% of the population or 72,601 people (7.6% in 2022 and 8.1% in 2021) were in the “higher income class” with their equivalent disposable income exceeding pound 37,747, per year.

According to the data of the Statis
tical Service, the median equivalent disposable national income varies between pound 14,156 and pound 18,873.

In relation to the 64% of the population who in 2023 belonged to the “middle income class”, 21.9% of this class or 200,975 people belonged to the “lower middle income class” and had an equivalent disposable income corresponding to the median equivalent disposable national income ranging from pound 14,156 to pound 18,873.

A percentage of 30.3% of the “middle income class” or 277,292 people belonged to the “medium middle income class” and had an equivalent disposable household income of pound 18,874 – pound 28,309 and the remaining 11.9% or 108,877 belonged to the “upper middle income class” and had an equivalent disposable household income of pound 28,310 – pound 37,746.

It explains that the equivalent disposable income is calculated by dividing the total disposable income of the household (total net income of all its members after social transfers) by the equivalent size of the household, which res
ults from the application of the following weighting factors: 1st adult = 1, 0 unit, other persons aged 14 and over = 0.5 units and persons under 14 = 0.3 units.

Moreover, the figures show that the median equivalent disposable income of the population living in “upper income class” households amounted to pound 46,711 and was more than 200% higher than the national median equivalent disposable income.

In the “lower income class” the median equivalent disposable income of the percentage of the population living in households amounted to pound 11,339 and was less than 75% of the median equivalent disposable national income, while of the population living in households and at risk of poverty the median equivalent disposable income amounted to pound 9,619 and was less than 60% of the median equivalent national disposable income.

In addition, the “lower middle income class” had a median equivalent disposable income of pound 16,368 which is at 75% – 100% of the median equivalent national disposable income.

The ‘
medium middle income class’ had a median equivalent disposable income of pound 22,838 which is at 100% – 150% of the median equivalent disposable income, while the “upper middle income class” had a median equivalent disposable income of pound 31,267 which is at 150% – 200% of median equivalent disposable national income.

According to the Statistical Service, 1.2% of “upper income class” households were in arrears on their home loan or rent in 2023, up from 8.8% in 2018.

The corresponding percentage for the “middle income class” rose to 9.4% in 2023, compared to 18.3% in 2018, while for the “lower income class” it remained close to the percentages of 2018, as it rose in 2023 to 31.6%, compared to 32.8% in 2018.

Finally, it says that over time, the highest proportion of people living in households that have defaulted on their home loan or rent payments are in the “lower income class”.

Source: Cyprus News Agency