Copyright International Labour Organization 2016 First published 2016

Transcription

1 Cyprus

2 Copyright International Labour Organization 2016 First published 2016 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Licensing), International Labour Office, CH-1211 Geneva 22, Switzerland, or by rights@ilo.org. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with a reproduction rights organization may make copies in accordance with the licences issued to them for this purpose. Visit to find the reproduction rights organization in your country. The state of application of the provisions for social security of the international treaties on social rights: ILO Technical Note: Cyprus / International Labour Office. Geneva: ILO, 2016 ISSN International Labour Office social security / economic and social rights / poverty alleviation / treaty / benefit administration / wage rate / compliance / reporting system / ILO Convention / comment / EU / UN / Cyprus / ILO pub ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. Available only in electronic version

3 Outline CHAPTER I. Adequacy of social security benefits: income and poverty indicators and standards CHAPTER II. Selection of the Article 65, 66 or 67 under C102/ECSS and determination of the Standard Reference Wage used for calculating the replacement level of benefits CHAPTER III. Integrated Management of compliance and reporting obligations of Cyprus under social security provisions of the ratified international treaties on social rights Chapter IV. Concluding observations of the supervisory bodies concerning provisions of the ratified international treaties on social rights and statements of other international bodies reviewing national economic and social policy

4 International Labour Standards Department (NORMES), Social Security Unit Social Protection Department (SOCPRO) Production Team: Alexandre Egorov Head of Social Security Unit (Editor) Margarita Lysenkova Labour economist Svetlana Mandzhieva Legal specialist Valeria Nesterenko Statistician Olena Vazhynska Research officer The information and data contained in the Technical Note is taken from the Government reports, on-line databases of the National Statistical office, official web-sites of the government departments, MISSCEO, MISSOC, SSI, ILOSTAT and EUROSTAT. List of international abbreviations: CAS Committee on the Application of Standards, International Labour Conference CEACR Committee of Experts on the Application of Conventions and Recommendations CEDAW Convention on the Elimination of All Forms of Discrimination against Women CESCR Committee on Economic, Social and Cultural Rights COE Council of Europe CRC Convention on the Rights of the Child CRPD Convention on the Rights of Persons with Disabilities ECSR European Committee of Social Rights ECSS European Code of Social Security ESC European Social Charter EU European Union EUROSTAT Statistical Office of the European Union GC Governmental Committee of the European Social Charter and European Code of Social Security ICESCR International Covenant on Economic, Social and Cultural Rights ILS International Labour Standards IMF International Monetary Fund MISSEO Mutual Information System on Social Protection of the Council of Europe MISSOC Mutual Information System on Social Protection OECD Organisation for Economic Co-operation and Development SSI Social Security Inquiry National abbreviations: NHS GEPS GSIS COLA National Health System Government Employee Pension Scheme General Social Insurance Scheme Cost-of-living allowance

5 CHAPTER I. Adequacy of social security benefits: income and poverty indicators and standards Country profile by Eurostat indicators, National indicators and ILO minimum standards Fig. 1. Income and poverty single person, 2013 Fig. 2. Structure of population in poverty (Eurostat poverty threshold of 60%) by the most frequent employment status, 2013 Fig. 3. Social benefits in comparison to Eurostat 40% and 50% poverty thresholds, 2014 Fig. 4. Income and poverty indicators by type of household, 2012 Fig. 5. Comparison of monthly wages and pensions (40% replacement rate) to the Eurostat poverty thresholds in , by decile Fig. 6. Test on precarious employment: share of employed population by different job security situation, as % of total employment, 2012 Fig. 7. Theoretical Replacement Rates for low and average wage earners, retiring in 2053 at statutory pension age (67) with 30 years of contributions between 2013 and 2053 Social security and reduction of poverty. Extracts from the 2014 and 2015 Government reports on the European Code of Social Security

6 Country profile by Eurostat indicators, National indicators and ILO minimum standards Eurostat EU-Avg At-risk-of-poverty threshold (40%, single person) At-risk-of-poverty threshold (50%, single person) At-risk-of-poverty rate - 50%, before social transfers 19.5% 13.9% 15.5% 15.9% 16.6% At-risk-of-poverty rate - 50%, after social transfers 10.2% 9.0% 8.0% 8.1% 7.8% At-risk-of-poverty rate for children under 18 y.o. - 50% thrd 12.4% 6.4% 7.6% 9.1% 7.5% In-work poverty rate - 50% threshold 5.2% 3.2% 4.3% 4.4% 4.0% At-risk-of-poverty rate for pensioners - 50% threshold 6.0% 28.9% 13.4% 7.8% 8.4% Aggregate replacement ratio 55% 0.29% 0.39% 0.4% 0.39% Severe material deprivation (% of total population) 9.6% 12.2% 15.0% 16.1% 15.3% Persistent at-risk-of-poverty rate - 50% threshold 5.2% 3.9% 3.7% 2.8% Social protection expenditure as % of GDP 25.0% 18.4% 23.1% 24.4% Gini coefficient before social transfers 36.1% 31.0% 34.1% 35.5% 37.5% Gini coefficient after social transfers 30.5% 28.7% 31.0% 32.4% 34.8% National indicators Physical subsistence minimum , Report on the ECSS 2014 Public assistance minimum , The Social Welfare Services Department Minimum wage* , Minimum Wage Ordinance from 1 April 2012 Minimum pension , Report on the ECSS 2013 Average wage , The Statistical Office of the Republic of Cyprus Government Report under the ECSS submitted in 2015 Reference wage (skilled worker) * Reference wage (unskilled worker) Not applied Social Security branch Standard beneficiary St benefit amount Replacement rate Part III Sickness benefit Art. 65-6b % Part IV Unemployment benefit Art. 65-6b % Part V Old-age benefit Art. 65-6b % Part VI Employment injury benefit Art. 65-6b % Part VII Family benefit Not ratified - - Part VIII Maternity benefit Not ratified - - Part IX Invalidity benefit Art. 65-6b % Part X Survivor's benefit Art. 65-6b %

7 Fig. 1. Income and poverty - single person, 2013 Fig. 2. Structure of population in poverty (Eurostat poverty thresholds of 60%) by the most frequent employment status, 2013

8 Fig. 3. Social benefits in comparison to Eurostat 40% and 50% poverty thresholds, 2014 Benefits/payments Amount per month Sources Minimum wage 870.0* Minimum wage ordinance 2014 Legal minimum pension MISSOC, 2014 Standard beneficiary pension Pension for average case worker, Government Report 2014 Survivor benefit MISSOC, 2014 Unemployment insurance benefit (UI - 3 months) MISSOC, 2014 Maternity insurance benefit MISSOC, 2014 Disability Insurance (permanent) MISSOC, 2014 GMI (single) MISSOC, 2014 GMI (per adult living in a household) Government Report, 2014 At-risk-of-poverty threshold, 40% Eurostat, 2014 At-risk-of-poverty threshold, 50% Eurostat, 2014

9 Fig. 4. Income and poverty indicators by type of household, 2012 (at-risk-of-poverty thresholds for the household with 2 adults and 2 children) Household composition Average net income At risk of poverty rate (60% threshold) 2 adults % 1 adult, 1 child % 2 adults, 1 child % 2 adults, 2 children % 2 adults, 3 children %

10 Fig. 5. Comparison of monthly wages and pensions (40% replacement rate) to the Eurostat thresholds in , by decile Fig. 6. Test on precarious employment: share of employed population by different job security situation, as % of total employment, 2012

11 Fig. 7. Theoretical Replacement Rates for low and average wage earners, retiring in 2053 at statutory pension age (67) with 30 years of contributions between 2013 and 2053 Male, 20 years work from age 25 - career break until 10 years prior to SPA - 10 years work. 10 years of career break in the middle of the career NET Replacement rate total GROSS Replacement rate total GROSS Replacement rate Statutory pension (DB or NDC) GROSS Replacement rate Statutory (DC) GROSS Replacement rate Occupational pension low average low average low average low average low average % 57.0% 52.0% 50.0% 50.0% 50.0% 2.0% % % Source: The 2015 Pension Adequacy Report: current and future income adequacy in old age in the EU,

12 Social security and reduction of poverty. Extracts from the 2014 Government report on the European Code of Social Security. Concerning Social Security and reduction of poverty Please find below the following: 1. A table showing the evolution of the at risk poverty threshold from 2006 up to 2013 (source SILC Eurostat) At-risk-poverty thresholds (60% of median equivalised income) single person ,722 9,609 9,614 9,871 9,708 10,194 10,156 9, Average (minimum) wages There is no minimum wage legislation in Cyprus. However an Order is issued annually by the Minister of Labour, Welfare and Social Insurance which specifies the minimum wage to be provided on a monthly basis and applies from 1 April every year, for the following occupations: Clerks Shop Assistants School Assistants, Assistant Baby and Child Minders Nursing Assistants Health Care Assistants (as of 2008) Security Guards (as of 2008) Cleaners of Business Buildings (as of 2010) A Tripartite Technical Committee reviews and updates the Minimum Wage Order on a yearly basis. From 2008, the minimum wage reached 50% of the national median wage, in accordance to a relevant Council of Ministers Decision in Increase of Minimum Wage since 2006: Year Increase % Ratio of Minimum Wage to National Median Wage ,61% 47,60% ,73% 48,81% ,71% 48,67% ,02% 50,29% ,82% 50,00% ,92% 50,00% ,7% 50,00%

13 The evolution of minimum wage for the period : Year Min. wage upon employment Min. wage after 6 months of employment ,00 408, ,00 434, ,00 789, ,00 840, ,00 887, ,00 909, ,00 924, ,00 924,00 3. Average (minimum) pensions Dependants 163,00 168,66 311,00 314,30 330,93 343,52 350,74 352,88 1 Dependant 217,33 224,88 414,66 419,07 441,24 458,04 467,65 470,51 2 Dependants 244,50 252,99 466,49 471,45 496,40 515,28 526,10 529,32 3 Dependants 271,67 281,10 518,32 523,83 551,55 572,54 584,56 588,13 4. Physical subsistence minimum (absolute poverty) measured in terms of basic needs or minimum consumer basket So far, the absolute level of poverty measured in terms of minimum consumption basket, has not been calculated on a regular basis but on an ad-hoc basis In Cyprus. Therefore, there is no available data since However, with the recent enactment of the legislation for the Guaranteed Minimum Income, the absolute poverty threshold will be calculated on a regular basis in accordance with the results of a minimum consumption basket survey (using the budget standards method). The absolute poverty level represents the minimum income level required for achieving a decent standard of living and goes beyond a subsistence standard of living. For the year 2013 that threshold was calculated at 480 per month for a single person household. Adequacy of benefits The relative poverty threshold (expressed as percentage of the Median Equivalized income) is not an appropriate threshold for monitoring the adequacy of the social Insurance benefits because under such an approach poverty is treated as a relative concept, meaning that poverty in one country is measured against a yardstick dependent on household income of the whole population in that country. It therefore measures monetary income inequalities in a society and does not necessarily represent the minimum income required for achieving a decent standard of living. In Cyprus, the absolute poverty threshold measured on a budget standards method, is significantly lower than the relative poverty threshold. This difference is primarily due to the relatively low level of deductions (income tax, social Insurance contributions, etc) from household gross working income in Cyprus. As a result, in the case of Cyprus, the absolute poverty threshold is more appropriate for monitoring the adequacy of the social Insurance benefits.

14 One of the shortcomings of the above relative measure is that the value of the income poverty threshold could evolve rather ambiguously in periods of economic crisis. So for example, over the last two years there has been a significant decrease in household working income (due to high unemployment and pay cuts) and the relative poverty threshold decreased by 6.2% (reference year 2012). As illustrated in the table below, while the risk of poverty for the whole population has increased to 15.3% in 2013, the risk of poverty for elderly people has been reduced to 20.1%. At-risk-of-poverty rate Total population Aged This illustrates that the indicator (relative poverty threshold) is not appropriate to measure the adequacy of social security benefits

15 Extracts from the 2015 Government report on the European Code of Social Security During the negotiations of the MoU the Cyprus Government was under very tight deadlines to agree on the measures to be taken in order to secure the financial sustainability of the pension system in Cyprus. To this extent no social impact assessment was conducted prior to the adoption of the measures. However, in preparing the package of the measures, the Government took under serious consideration their impact to the contributors as well as to the beneficiaries. As a result the measures agreed with Troika provided for the gradual increase of the contributions (every five years) alongside with the gradual increase of the qualifying conditions for old age pension. At the same time the beneficiaries were not affected. The Social Impact Assessment which was undertaken as a part of introducing the Guarantee Minimum Income showed that the AROP as well as the poverty gap is estimated to decrease by 3,2% and 16,8% respectively. Furthermore, it is noted that the introduction of GMI is expected to reduce significantly the absolute poverty rates by 70%. Finally we wish to state that the risk of poverty rate for elderly (65+) has been reduced to 24,3% for Regarding the introduction of the GMI and the readjustment of welfare benefits accordingly, a social impact assessment has been carried out prior to any decisions ( ). According to the various decision parameter inputs and the relevant outputs of the models, the optimal solutions were chosen so as to mainly eliminate and/or reduce the number of people living in absolute poverty, reduce the poverty gap focusing on the most vulnerable, lift number of households above the relevant poverty threshold, while maintaining near neutral budget for welfare during the adjustment period. After running various sets of decision parameters, the final GMI and welfare design chosen had significant effects in the desired outcomes while remaining nearly budget neutral. More specifically, the incidence of poverty (share of poor in the general population) was predicted to decrease by 3,2%, with more emphasis on vulnerable groups, while the intensity of poverty (the distance between the income of the poor and the relative poverty threshold) was predicted to decrease by 16,8%, with decreases up to 32,7% for the most vulnerable groups. Finally, the most significant effect was measured on the number of households living under the absolute poverty threshold, where a reduction of 70% was predicted. Regarding the method for the calculation of the absolute poverty threshold, this was achieved by compiling complete reference budgets for different model families using a combined normative/consensual approach. The reference budgets included all possible needs of reference families from the following categories: Food, Clothing, Housing, Furnishings and Equipment, Health, Transportation, Education, Communications, Recreation, Energy and Taxes. At the same time, all goods and services or other expenses supplied for by the state as part of its welfare policy (i.e. free education / hospital visits for poor) were appropriated from the budgets. The budgets were priced at market prices and discussed/verified with focus groups as well as with relevant experts for each category.

16 With the introduction of the GMI, which guarantees that no family will live below the absolute poverty threshold as described above, it is now placed at the core of the welfare system in a way that the other welfare benefits (child support, low income pensioner support, lone parent support etc) are taken into account along with other income sources in order to determine the eligibility for GMI. Furthermore, the rest of the welfare benefits which are not pegged to the GMI/absolute poverty threshold, serve to further reduce the poverty gap and/or lift households out of poverty and over the relative poverty threshold. The table below shows the reduction in AROP and AROPE rates for both 65+ and 75+ age groups Poverty and material deprivation 2013 Change Indicator Total Men Women Total Men Women At-risk-of-poverty or social exclusion (AROPE), 65+ At-risk-of-poverty rate (AROP), 65+ Severe material deprivation (SMD), 65+ At-risk-of-poverty or social exclusion (AROPE), 75+ At-risk-of-poverty rate (AROP), 75+ Severe material deprivation (SMD), 75+ Relative poverty gap, 65+ At-risk-of-poverty rate (AROP), 65+: 40 % threshold At-risk-of-poverty rate (AROP), 65+: 50 % threshold At-risk-of-poverty rate (AROP), 65+: 70 % threshold

17 CHAPTER II. Selection of the Article 65, 66 or 67 under C102/ECSS and determination of the Standard Reference Wage used for calculating the replacement level of benefits Fig. 1. Article 65: Type of social security schemes and method of benefit calculation Fig. 2. Article 66: Type of social security schemes and method of benefit calculation Fig. 3. Article 67: Type of social security schemes and method of benefit calculation Extracts from the Government Reports ( ) on the ECSS concerning the Reference Wage Table 1. Calculation of the reference wage under all options permitted by Articles of the ECSS/C102 ILO assessment of the options offered by Articles Fig. 4. Share of employed males by economic activity in total male employment and share of males in paid employment by economic activity in total number of males in paid employment Fig. 5. The average wages of a typical skilled/unskilled manual male employee determined by cross-tabulating of the two classifications Fig.6. Average monthly wages of skilled employees by economic activity Fig.7. Average monthly wages of unskilled employees by economic activity Fig.8. Average monthly wages of employees by economic activity Fig.9. Average monthly wages of male and female skilled and unskilled employees in the 2 sectors (Wholesale and retail trade and Construction) with the highest number of male employees, in comparison to other wage indicators in Cyprus Fig.10. Comparison of the reported reference wage to other wage indicators in Cyprus

18 Fig. 1. Article 65: Type of social security schemes and method of benefit calculation

19 Fig. 2. Article 66: Type of social security schemes and method of benefit calculation

20 Fig. 3. Article 67: Type of social security schemes and method of benefit calculation

21 Extracts from the Government Reports ( ) on the ECSS concerning the Reference Wage Report of Cyprus under Article 74 of the European Code of Social Security and its Protocol (1 July June 2015) p. 7 The amount of the weekly benefit granted to the standard beneficiary whose earnings are equal to the reference wage ( ) and with a full insurance record from 1966 to (48.75 years) is or 61% of the reference wage as against 40% provided by the Code. The following Table gives examples of the weekly amount of pension as a percentage of the reference wage of the standard beneficiary with varying years of insurance. TITLE V (Article 65) - (with full insurance record): Amount granted during the time basis: Amount of benefit per cent of the standard wage ( ): 53% ( : ). The mean normal hourly wage in 2014 was (ISCO 7212) info refers to WEEKLY wage Report of Cyprus under Article 74 of the European Code of Social Security and its Protocol (1 July June 2014) p. 24 The wage of an ordinary adult male laborer of 272 per week which the committee refers to corresponds to the wage of unskilled labor used by the grants and benefits service in relation to the family benefit as stipulated in Article 66 of the Code and not the one used in relation to pensions which was 434,72 in October 2012 and 433,96 in October The Committee would like the Government to explain how the wage of an ordinary adult male laborer is determined under Article 66 of the Code. The amount of stated under article 44 in the last report is incorrect since it concerns the average annual total remuneration of men and women. The correct amount which represents the average annual total remuneration of an ordinary male manufacturer worker is ( 293,73 per week). The weekly wage of the ordinary adult male laborer of 315 stated in the previous reports is not comparable with the amount of 293,73, which represents the average annual total remuneration of an ordinary male manufacturer worker, since there was a break in the series and the source has changed. Report of Cyprus under Article 74 of the European Code of Social Security and its Protocol (1 July June 2014) p. 4 The estimated weekly wage of the skilled manual worker was in October The weekly wage of the skilled manual worker for 2013 is not available as the survey for wages will not be conducted again. The weekly wage above was calculated by Cystat using data available to them by the Social Insurance Services. Report of Cyprus under Article 74 of the European Code of Social Security and its Protocol (1 July June 2013) p. 2, 6, 12, 20, 22 The weekly wage of the skilled manual worker was considered as a reference wage ( ) in Report of Cyprus under Article 74 of the European Code of Social Security and its Protocol (1 July June 2011) p. 9 The weekly wage of the skilled manual worker was considered as a reference wage ( 425) in October 2010.

22 Table 1. Calculation of the reference wage under all options permitted by articles of the ECSS/C102 Option 1 Option 2 Articles in the ECSS/C.102 Art.65 (6)a: a fitter or turner in the manufacture of machinery other than electrical machinery Art.65 (6)b: a person deemed typical of skilled labour Reference wage: amount Comments ILO calculations 1 - Government Article 65 (para 6): a skilled manual male employee occupations of fitter N/A and turner can be found among skilled employees of ISCO 08 3 (group 7) a skilled employee of the ISIC rev.4 4 group with the highest number of male employees: typical skilled male worker in wholesale and retail trade 1631euros 5 skilled manual worker: 2011: 425 per week in 2010 * 52.2 weeks / 12 months = euros per month 2012: in 2012 * 52.2 weeks / 12 months = 1891 euros per month 2013: in 2013 * 52.2 weeks / 12 months = euros per month 2014: * 52.2 weeks / 12 months = euros per month Option 3 Option 4 Option 5 Art.65 (6)c: a person whose earnings are equal to 125 per cent of the average earnings of all the persons protected Art.66 (4)a: a person deemed typical of unskilled labour in the manufacture of machinery other than electrical machinery Art.66 (4)b: a person deemed typical of unskilled labour * Gross wages are used unless stated otherwise in countries where all employees are protected average wage is normally used 2475 euros 6 (fulltime and part-time employees) Article 66 (para 4): an ordinary male labourer an employee of the N/A ISIC rev.4 Manufacture of machinery (2-digit level of the classification: ISIC Rev.4 Section C. Manufacturing, code 28) an unskilled employee 1173 euros per week in 2013 *52.2 weeks of the ISIC rev.4 group / 12 months = euros per month with the highest number of male employees: typical unskilled male worker in wholesale and retail trade 1 ILO calculations based on EUROSTAT data from Labour Force Survey - LFS-2013 and SES-2010 (see detailed information further) 2 Reference wage reported by the Government on the application of ECSS and C ISCO 08 International Standard Classification of Occupations 2008 (detailed explanation to follow) 4 ISIC rev.4 - International Standard Industrial Classification of All Economic Activities, Rev.4, Structure of earnings survey (SES) Eurostat, Structure of earnings survey (SES) Eurostat, Structure of earnings survey Eurostat,

23 ILO assessment of the options offered by articles 65-66: OPTION 2 - a typical manual male employee is found in the sector with the highest number of employed males = Wholesale and retail trade Fig.4. Share of employed males by economic activity in total male employment and share of males in paid employment by economic activity in total number of males in paid employment (ISIC rev.4, 2013, LFS) Wholesale and retail trade Construction Manufacturing Public administration and defence Accommodation and food service activities Financial and insurance activities Professional, scientific and technical activities Transportation and storage Education Agriculture, forestry and fishing Information and communication Administrative and support service activities Human health and social work activities Water supply; sewerage, etc Other service activities Arts, entertainment and recreation Electricity, gas, etc Activities of households as employers Real estate activities Self-employed+paid employed % Paid employed only Source: Eurostat LFS - Fig 5. The average wages of a typical skilled/unskilled manual male employee are determined by cross-tabulating of the two classifications ISCO 08 International Standard Classification of Occupations (group 7- skilled and 9 ordinary) ISIC rev.4 - International Standard Industrial Classification of All Economic Activities, Rev.4, 2008

24 Fig.6. Ave rage monthly wages of skilled employees by economic activity, SES-Eurostat, 2010 (new survey in 2014) Electricity, gas, steam and air conditioning supply Information and communication Transportation and storage Water supply; sewerage, waste management and remediation Public administration and defence; compulsory social security Human health and social work activities AVG wage of skilled employees Construction Other service activities Arts, entertainment and recreation Education Manufacturing Professional, scientific and technical activities Wholesale and retail trade; repair of motor vehicles and motorcycles Administrative and support service activities ,000 1,500 2,000 2,500 3,000 1,631 Source: Eurostat SES - total male RW of a skilled manual male worker Fig.7. Average monthly wages of unskilled employees by economic activity, SES-Eurostat, 2010 (new survey in 2014) ,000 1,200 1,400 1,600 1,800 2,000 Construction Transportation and storage Electricity, gas, steam and air conditioning supply Public administration and defence; compulsory social security Financial and insurance activities Human health and social work activities AVG wage of unskilled employees Manufacturing Education Wholesale and retail trade; repair of motor vehicles and motorcycles Arts, entertainment and recreation Water supply; sewerage, waste management and remediation Accommodation and food service activities Other service activities Administrative and support service activities Real estate activities 1,173 RW of an unskilled manual male worker total male Source: Eurostat SES -

25 Fig.8. Average monthly wages of employees by economic activity, SES-Eurostat, 2010 (new survey in 2014) ,000 1,500 2,000 2,500 3,000 3,500 4,000 Financial and insurance activities Education Human health and social work activities Electricity, gas, steam and air conditioning supply Transportation and storage Professional, scientific and technical activities Public administration and defence; compulsory social security Information and communication Other service activities AVG wage of employees Arts, entertainment and recreation Real estate activities Construction Water supply; sewerage, waste management and remediation Wholesale and retail trade; repair of motor vehicles and Manufacturing Administrative and support service activities Accommodation and food service activities Eurostat SES - total male Source: Fig.9. Average monthly wages of male and female skilled and unskilled employees in the 2 sectors (Wholesale and retail trade and Construction) with the highest number of male employees, in comparison to other wage indicators in Cyprus, SES Eurostat, 2010 and EU-SILC, Cyprus, male wage Cyprus, female wage E u r o , , skilled unskilled AVG in the sector 1,768 NO 1,777 2,023 1, , data skilled unskilled AVG in the sector 1,392 1,015 2,207 1,727 skilled unskilled AVG in the economy Wholesale and retail trade Construction Total economy 2, % of avg wage 19.5% of all male employees 14.3% of all male employees Source: Eurostat SES - and 125% of average wage (include both full-time and part-time employees)

26 3000 Fig.10. Comparison of the reported reference wage (2010 and 2013) to other wage indicators in Cyprus, 2010, euros Reported RW - skilled male manual worker euros (2011) Reported RW - unskilled male manual worker euros (2013) AVG male wage AVG male wage in wholesale and retail trade AVG male wage AVG male wage AVG male wage in construction of skilled worker of unskilled worker Wage of skilled male worker in wholesale and retail trade -RW (option 2) 125% of average wage - RW (option 3) Wage of skilled male worker in wholesale and retail trade -RW (option 5) Source: Eurostat SES - and for option 3 125% of average wage (include both full-time and part-time employees)

27 CHAPTER III. Integrated Management of compliance and reporting obligations of Cyprus under social security provisions of the ratified international treaties on social rights Table 1. Up-to-date social security standards in force Table 2. Pending comments of the supervisory bodies Table 3. Up-to-date standards on which reports are due in 2016 Table 4. Up-to-date standards on which reports are due in 2017 Next detailed report of Cyprus under Article 74 of the ECSS. (Extract from CEACR 2015 Conclusions) Parts of Convention No.102 no longer applicable following ratification of more advanced standards Coordination of reporting between the ECSS and C102. Form for the annual report on the European Code of Social Security Table 5. Coordination of reporting obligations on up-to-date ILO social security Conventions ratified by Cyprus Fig. 1. Time management of the 5 years reporting cycle ( /17) on international and European social security standards Fig. 2. Time management for reporting on social security standards in 2016

28 Table 1. Up-to-date social security standards in force Social Human Rights International treaties ICECSR UN Conventions ESC Revised Right to health Right to work Right to just conditions of work Right of the family and children to protection Right of mothers to protection Right to Social Security Art.9 Art.12 Art.6 Art.7 b Art Art.10 2 Art.11 Art.13 1 Art Art.23 Rights of persons with disabilities CRPD CRC CEDAW CRPD Art , 15 2 Art.16, 27 1b,c Art.3 4 Art.8 1 Right to Social Security Art Art Right to an adequate standard of living Art.7 a ii, 11 1 Art.4 1, 13 1, 30 Art , 14 Protocol II III IV V VI VII VIII IX X Schedule to XI ECSS Medical care Part II Sickness benefit Part III Unemployment benefit Part IV Old-age benefit Part V Employment injury benefit Part VI Family benefit Part VII Maternity benefit Part VIII Invalidity benefit Part IX Survivor's benefit Part X Level of benefits Part XI Financing & Organization Art.2 1, 4, 5 Financing& Organization Part XII C102 Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X Part XI Part XIII ILO Conventions C130 Part II C130 Part III C168 C128 Part III C121 C183 Art.6,7 C128 Part II C128 Part IV C121 Art C128 Part V C130 Part III C168 Art.15,16 C121 Art C128 Part VI C130 Part IV C168 Part VIII Social Security Standards in force for Cyprus Social Security Standards not in force

29 Social Human Rights International treaties ICECSR UN Conventions ESC Revised Right to health Right to work Right to just conditions of work Right of the family and children to protection Right of mothers to protection Right to Social Security Art.9 Art.12 Art.6 Art.7 b Art Art.10 2 Art.11 Art.13 1 Art Art.23 Rights of persons with disabilities CRPD CRC CEDAW CRPD Art Art.15 2 Art.3 4 Art.16, 27 1b,c Art.8 1 Art.15 1 Art.15 3 Right to an adequate standard of living Art.7 a ii, 11 1 Art.4 1, 13 1, 30 Art , 14 Right to Social Security Art.12 1 Art Protocol II III IV V VI VII VIII IX X Schedule to XI ECSS Medical care Part II Sickness benefit Part III Unemployment benefit Part IV Old-age benefit Part V Employment injury benefit Part VI Family benefit Part VII Maternity benefit Part VIII Invalidity benefit Part IX Survivor's benefit Part X Level of benefits Part XI Financing & Organization Art.2 1, 4, 5 Financing& Organization Part XII C102 Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X Part XI Part XIII ILO Conventions C130 Part II C130 Part III C168 C128 Part III C121 C183 Art.6,7 C128 Part II C128 Part IV C121 Art C128 Part V C130 Part III C168 Art.15,16 C121 Art C128 Part VI C130 Part IV C168 Part VIII Pending comments of the supervisory bodies critical comments or non-compliance Table 2. Pending comments of the supervisory bodies

30 Table 3. Up-to-date standards on which reports are due in 2016 Social Human Rights International treaties ICECSR UN Conventions ESC Revised Right to health Right to work Right to just conditions of work Right of the family and children to protection Right of mothers to protection Right to Social Security Art.9 Art.12 Art.6 Art.7 b Art Art.10 2 Art.11 Art.13 1 Art Art.23 Rights of persons with disabilities CRPD CRC CEDAW CRPD Art Art.15 2 Art.3 4 Art.16, 27 1b,c Art.8 1 Right to Social Security Art Art Right to an adequate standard of living Art.7 a ii, 11 1 Art.4 1, 13 1, 30 Art , 14 Protocol II III IV V VI VII VIII IX X Schedule to XI ECSS Medical care Part II Sickness benefit Part III Unemployment benefit Part IV Old-age benefit Part V Employment injury benefit Part VI Family benefit Part VII Maternity benefit Part VIII Invalidity benefit Part IX Survivor's benefit Part X Level of benefits Part XI Financing & Organization Art.2 1, 4, 5 Financing& Organization Part XII C102 Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X Part XI Part XIII ILO Conventions C130 Part II C130 Part III C168 C128 Part III C121 C183 Art.6,7 C128 Part II C128 Part IV C121 Art C128 Part V C130 Part III C168 Art.15,16 C121 Art C128 Part VI C130 Part IV C168 Part VIII Report in 2016

31 Social Human Rights International treaties Right to health Right to work Right to just conditions of work Right of the family and children to protection Right of mothers to protection Rights of persons with disabilities Right to an adequate standard of living Financing & Organization ICECSR UN Conventions ESC Revised Right to Social Security Art.9 Art.12 Art.6 Art.7 b Art Art.10 2 Art.11 Art.13 1 Art Art.23 CRPD CRC CEDAW CRPD Art.3 1 2, Art.16, 27 1b,c Art.3 4 Art.8 1 Right to Social Security Art Art Art.7 a ii, 11 1 Art.4 1, 13 1, 30 Art , 14 Protocol II III IV V VI VII VIII IX X Schedule to XI ECSS Medical care Part II Sickness benefit Part III Unemployment benefit Part IV Old-age benefit Part V Employment injury benefit Part VI Family benefit Part VII Maternity benefit Part VIII Invalidity benefit Part IX Survivor's benefit Part X Level of benefits Part XI Art.2 1, 4, 5 Financing& Organization Part XII C102 Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X Part XI Part XIII ILO Conventions C130 Part II Report in 2017 C130 Part III C168 C128 Part III Table 4. Up-to-date standards on which reports are due in 2017 C121 C183 Art.6,7 C128 Part II C128 Part IV C121 Art C128 Part V C130 Part III C168 Art.15,16 C121 Art C128 Part VI C130 Part IV C168 Part VIII

32 Next detailed report of Cyprus under Article 74 of the ECSS (Extract from CEACR 2015 Conclusions) In accordance with the reporting cycle on the Code, by 31 July 2016 the Government shall submit once every five years a detailed report covering the period since the last detailed report from 1 July 2011 to 30 June In accordance with the five year reporting cycle on Convention No. 102, by 1 September 2016 the Government shall also submit a detailed report on the Convention for the period from 1 June 2011 to 31 May The Committee draws the Government s attention to the alignment of the reporting procedures under the Code and Convention No. 102 and the similarity of the Report Forms on both instruments, which was put in place to reduce the administrative workload and avoid duplication of reports. For this purpose, the Report Form on the Code expressly stipulates that, if a Government is bound by similar obligations as a result of having ratified the ILO Convention No. 102, it may communicate to the Council of Europe copies of the reports it submits to the International Labour Office on the implementation of this Convention. Where certain Parts of Convention No. 102 have ceased to be applicable due to ratification of the corresponding Parts of the more advanced Conventions Nos 121, 128 and 130, the Government may equally communicate to the Council of Europe copies of its reports on these Conventions. The Committee points out that this simplified procedure can be used next year to report on all accepted Parts of the Code except Part VII. Furthermore, by 31 October 2016, the Government will also have to report on the application of the accepted provisions of the European Social Charter belonging to the thematic group Health, social security and social protection, which includes the right to protection of health (Article 11), the right to social security (Article 12), the right to social and medical assistance (Article 13), the right to benefit from social welfare services (Article 14), the right of elderly persons to social protection (Article 23), and the right to protection against poverty and social exclusion (Article 30). The Committee observes that these articles of the Charter are directly related to many provisions of the Code and Convention No. 102, which form a single legal space of international social security law. Taking into account that the reference period for the report on the Charter (1 January December 2015) falls inside the abovementioned periods for detailed reports on the Code and Convention No. 102, the Government is invited to coordinate the fulfilment of its reporting obligations under these instruments in order to improve the quality and consistency of the information provided. Such coordination could be extended further to include future reporting on the social security provisions of the United Nations human rights treaties, including the International Covenant on Economic, Social and Cultural Rights. With regard to coordination of compliance obligations, the Committee recalls that, in formulating its country conclusions on the application of the Code, it takes account of the relevant observations made by other supervisory bodies, such as the European Committee of Social Rights and the United Nations Committee on Economic, Social and Cultural Rights. To facilitate the integrated management of the country s obligations under the social security provisions of the main European and international treaties on social rights, the Committee refers the Government to the coordination tables and reporting timelines presented in the ILO technical note, together with the compilation of the related comments made by their supervisory bodies. The Committee hopes that such a holistic vision will help the Government to apply a rights-based approach to its fiscal consolidation policy and complement it by the legal consolidation of all international obligations binding Cyprus to the full respect of social security rights.

33 Parts of Convention No.102 no longer applicable following ratification of more advanced standards C102 - Social Security (Minimum Standards) Article 75 If any Convention which may be adopted subsequently by the Conference concerning any subject or subjects dealt with in this Convention so provides, such provisions of this Convention as may be specified in the said Convention shall cease to apply to any Member having ratified the said Convention as from the date at which the said Convention comes into force for that Member. C121 - Employment Injury Benefits C102, Part IV Article 29 In conformity with Article 75 of the Social Security (Minimum Standards) Convention, 1952, Part VI of that Convention and the relevant provisions of other Parts thereof shall cease to apply to any Member having ratified this Convention as from the date at which this Convention comes into force for that Member, but acceptance of the obligations of this Convention shall be deemed to constitute acceptance of the obligations of Part VI of the Social Security (Minimum Standards) Convention, 1952, and the relevant provisions of other Parts thereof, for the purpose of Article 2 of the said Convention C128 - Invalidity, Old-Age and Survivors' Benefits C102, Parts V, IX, X Article In conformity with the provisions of Article 75 of the Social Security (Minimum Standards) Convention, 1952, the following Parts of that Convention and the relevant provisions of other Parts thereof shall cease to apply to any Member having ratified this Convention as from the date at which this Convention is binding on that Member and no declaration under Article 38 is in force: (a) Part IX where the Member has accepted the obligations of this Convention in respect of Part II; (b) Part V where the Member has accepted the obligations of this Convention in respect of Part III; (c) Part X where the Member has accepted the obligations of this Convention in respect of Part IV. 2. Acceptance of the obligations of this Convention shall, on condition that no declaration under Article 38 is in force, be deemed to constitute acceptance of the obligations of the following parts of the Social Security (Minimum Standards) Convention, 1952, and the relevant provisions of other Parts thereof, for the purpose of Article 2 of the said Convention: (a) Part IX where the Member has accepted the obligations of this Convention in respect of Part II; (b) Part V where the Member has accepted the obligations of this Convention in respect of Part III; (c) Part X where the Member has accepted the obligations of this Convention in respect of Part IV.

34 C130 - Medical Care and Sickness Benefits C102, Part III Article In conformity with the provisions of Article 75 of the Social Security (Minimum Standards) Convention, 1952, Part III of that Convention and the relevant provisions of other Parts thereof shall cease to apply to any Member having ratified this Convention as from the date at which this Convention is binding on that Member and no declaration under Article 3 is in force. 2. Acceptance of the obligations of this Convention shall, on condition that no declaration under Article 3 is in force, be deemed to constitute acceptance of the obligations of Part III of the Social Security (Minimum Standards) Convention, 1952, and the relevant provisions of other Parts thereof, for the purpose of Article 2 of the said Convention. C130, Part II C102, Part II N.B! For information and reporting purposes, more advanced provisions on medical care contained in C130 include all those contained in Part II of C102. C168 C102, Part IV N.B! For information and reporting purposes, more advanced provisions on unemployment benefit of C168 include those contained in Part IV of C102. Coordination of reporting between the ECSS and C102 Form for the annual report on the European Code of Social Security (as modified by the Protocol additional thereto) If a Government is bound by similar obligations as a result of having ratified the Social Security (Minimum Standards) Convention adopted by the 1952 General Conference of the International Labour Organisation, it may communicate of the Council of Europe copies of the reports it submit to the International Labour Office on the implementation of this Convention. Council of Europe, Strasbourg 1967

35 Table 5. Coordination of reporting obligations on up-to-date ILO social security Conventions ratified by Cyprus

36 Fig. 1. Time management of the 5 years reporting cycle ( /17) on international and European social security standards

37 Fig. 2. Time management for reporting on social security standards in 2016

38

39 Chapter IV. Concluding observations of the supervisory bodies concerning provisions of the ratified international treaties on social rights and statements of other international bodies reviewing national economic and social policy Table 1. International treaties on social rights ratified by Cyprus Table 2. Monitoring Mechanisms of State Party Compliance and Reporting Obligations 1. United Nations International Covenant on Economic, Social and Cultural Rights Convention on the Rights of the Child Convention on the Elimination of All Forms of Discrimination against Women Convention on the Right of Persons with Disabilities 2. Council of Europe European Social Charter European Code of Social Security 3. International Labour Organization Maternity Protection Convention, 2000 (No. 183) 4. EU Country-Specific Recommendations: 2015 :

40 Table 1. In force international treaties on social rights ratified by Cyprus Body International Treaty Entry into force for Cyprus Next report due on United Nations Council of Europe ICESCR 2 Apr 1969 Submitted 15 Oct 2014, tbc in 2016 Convention on the Rights of the Child 7 Feb Mar 2018 Convention on the Elimination of All Forms of Discrimination against Women 23 Jul Mar 2017 Convention on the Rights of People with Submitted on 2 Aug 27 Jun 2011 Disabilities 2013, tbc in 2016 European Code of Social Security 16 Apr Jul 31 Aug 2016 European Social Charter 27 Sept Oct 2015 Convention Sep Jun - 1 Sep 2016 Convention 103 International Labour Organization Convention Jul Jun - 1 Sep 2016 Convention Jan Jun - 1 Sep 2016 Convention 130 Convention 168 Convention Jan Jun - 1 Sep 2018 European Union Country-Specific Recommendation of 14 July 2015