The number of low-income pensioners receiving the Easter bonus will drop by 2,500 this year, Cyprus union of pensioners (Ekysy) said on Monday. The organisation warns that compared to 2023, the reduction is even sharper, with 5,200 fewer recipients.

Ekysy issued a statement following today’s decision by the council of ministers on the allowance and the income criteria required to qualify. The union argues that this decision “continues to deprive the vast majority of low-income pensioners of the Easter bonus,” highlighting that only 11,000 pensioners, about one-third of the eligible group, will receive the benefit this year.

Citing official figures, Ekysy stated that in 2023, 13,500 pensioners benefited from the scheme, while in 2022, the number stood at 16,200. The union attributes the steady decline in recipients to the government’s failure to revise the income thresholds for eligibility since 2022. Annual increases from the social insurance fund, it claims, have gradually excluded more pensioners from the scheme.

According to the latest government decision, the income limit for the Easter bonus remains at €7,000 per year for a single-person household and €12,000 for a two-person household. Ekysy points out that these figures fall significantly below the official poverty threshold, which is set at €10,324 annually for a single-person household and €15,486 for a two-person pensioner household.

“Once again, the government is dividing pensioners into the poor and the poorer,” the union said. It expressed frustration that despite economic improvements, the government refuses to reinstate what pensioners had fought to secure. The statement criticised the government’s approach, contrasting its reluctance to support low-income retirees with its decision to abolish the corporate levy, which resulted in businesses saving between €40-45 million.

Ekysy also noted that the government celebrated economic growth last year, with state revenues exceeding expectations by €1.5 billion due to increased tax revenues caused by rising costs of living. Yet, the union argued, at the same time, authorities chose to cut support for vulnerable pensioners.

The organisation called on the government to restore pre-financial crisis eligibility criteria for the Easter bonus, as well as for the ‘mother’s allowance,’ and to introduce compensatory benefits for those affected by recent policy changes.

“We demand that the government reverses this decision and provides pensioners with the support they deserve,” the statement concluded.