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Risk of poverty or social exclusion (AROPE)
Based on the results of the Household Income and Living Conditions Survey 2022, with 2021 as the reference year, 16.7% of the population or 150.000 people were at risk of poverty or social exclusion (AROPE indicator, the main indicator for monitoring the European Union's 2030 target on poverty and social exclusion). In particular, 16.7% of the population lived in households with disposable income below the poverty line, or lived in households with severe material and social deprivation, or lived in households with a very low labour intensity index.
The indicator for 2022 shows a slight improvement compared to the previous year, when it stood at 17.3%, continuing the downward trend of recent years. The improvement is reflected in both genders, although over time women have remained at a disadvantage compared to men. Figure 1 shows the evolution of this indicator from 2015 to 2022.
Based on Figure 2, which shows separately the results for the three sub-indicators that make up the risk of poverty or social exclusion indicator (risk of poverty, severe material and social deprivation, very low work intensity), it appears that the improvement in the indicator is due to the reduction in the proportion of the population living in very low work intensity households (from 5.8% in 2021 to 4.1% in 2022) (see methodological information for further explanation).
At-risk-of-poverty (AROP)
The proportion of the population at risk of poverty, i.e. whose disposable income was below the monetary at-risk-of-poverty threshold, in 2022 was 13.9% or 125,000 people, remaining at about the same level as in 2021 (13.8%). The monetary at-risk-of-poverty threshold, which is set at 60% of the median total equivalent disposable household income, was calculated in 2022 at €10,713 for one-person households and €22,498 for households with two adults and two dependent children. The corresponding monetary thresholds for 2021 were €10,011 and €21,024. Note that the median equivalent disposable income (per person) for 2022 was €17,855 compared to €16,825 in 2021. Figure 3 shows the evolution of the poverty risk index and the monetary poverty risk threshold from 2008 to 2022.
Poverty risk before and after social transfers
The proportion of the population at risk of poverty before any social benefits1 and pensions2 (social transfers) were included in household disposable income was 33.3%. When pensions were included in the household disposable income, this rate fell to 20.1%, and when social benefits were subsequently included, the rate fell further to 13.9% (Figure 4). It can therefore be seen that social transfers contribute to reducing the at-risk-of-poverty rate. In 2022, overall, social transfers reduced this indicator by 19.4 percentage points, (13.2 percentage points due to pensions and 6.2 due to social benefits).
| Table | |||||||
| Index |
[TD] [/TD] [TD] [/TD] [TD]
2015
[/TD] [TD]2019
[/TD] [TD]20
[/TD] [TD]20
[/TD] [TD]2021
[/TD] [TD]2022
[/TD] [/TD][TR] [TD]
Percentage at risk of poverty or social exclusion (AROPE)
[/TD] [TD]Total
[/TD] [TD]%
[/TD] [TD]22,8
[/TD] [TD]
18,6
[/TD] [TD]17,6
[/TD] [TD]17,3
[/TD] [TD]16,7
[/TD] [/TR] [TR] [TD]Men
[/TD] [TD]%
[/TD] [TD]21,6
[/TD] [TD]17.2
[/TD] [TD]16.6
[/TD] [TD]15.8
[/TD] [TD]15.3
[/TD] [/TD] [/TR] [TR] [TD]Women
[/TD] [TD]%
[/TD] [TD]24,0
[/TD] [TD]19.9
[/TD] [TD]18.6
[/TD] [TD]18.7
[/TD] [TD]18,0
[/TD] [/TR] [TR] [TD]
[/TD] [TD]
Households of one person
[/TD] [/TD] [TD]€
[/TD] [TD]8.276
[/TD] [TD]9.729
[/TD] [TD]10.022
[/TD] [TD]10.011
[/TD] [TD]10.713
[/TD] [/TR] [TR] [TD]Households with 2 adults and
2 dependent children
[/TD] [TD]€
[/TD] [TD]17.380
[/TD] [TD]20.431
[/TD] [TD]21.047
[/TD] [TD]21.024
[/TD] [TD]22.498
[/TD] [/TR] [/TR] [TR] [TD]Poverty risk rate by age (AROP)
(after social transfers)
[/TD] [/TD] [TD]Total
[/TD] [TD]%
[/TD] [TD]16,2
[/TD] [TD]
14.7
[/TD] [TD]14,3
[/TD] [TD]
13,8
[/TD] [TD]13.9
[/TD] [/TD] [/TR] [TR] [TD]0-17
[/TD] [TD]%
[/TD] [TD]16.7
[/TD]16.7
[/TD] [TD]16.1
[/TD] [TD]15,8
[/TD] [TD]14.9
[/TD] [/TD] [/TR] [TR] [TD]18-64
[/TD] [TD]%
[/TD] [TD]15.9
[/TD] [TD]11.9
[/TD] [TD]12.0
[/TD] [TD]11.9
[/TD] [TD]11,9
[/TD] [/TR] [TR] [TD]65+
[/TD] [TD]%
[/TD] [TD]17.3
[/TD] [TD]24.6
[/TD] [TD]21.9
[/TD] [TD]19.5
[/TD] [TD]20,8
[/TD] [/TR] [TR] [TD]
Poverty risk rate before social transfers other than pensions
[/TD] [TD]Total
[/TD] [TD]%
[/TD] [TD]25,4
[/TD] [TD]22.7
[/TD] [TD]21.9
[/TD] [TD]22.1
[/TD] [TD]20,1
[/TD] [/TR] [TR] [TD]Poverty risk rate before all social transfers
[/TD] [TD]Total
[/TD] [TD]%
[/TD] [TD]38,8
[/TD] [TD]35.1
[/TD] [TD]35.2
[/TD] [TD]35.8
[/TD] [TD]33,3
[/TD] [/TR] [TR] [TD]Severe material and social deprivation (SMSD)
[/TD] [TD]Total
[/TD] [TD]%
[/TD] [TD]7,9
[/TD] [TD]
3.2
[/TD] [TD]3,2
[/TD] [TD]
2,6
[/TD] [TD]2,7
[/TD] [/TD] [/TR] [TR] [TD]Percentage of the population aged 0-64 living in households with a very low labour intensity index, by gender (LWI)
[/TD] [TD]Total
[/TD] [TD]%
[/TD] [TD]10,4
[/TD] [TD]6,6
[/TD] [TD]5,3
[/TD] [TD]5.8
[/TD] [TD]4,1
[/TD] [/TR] [TR] [TD]Men
[/TD] [TD]%
[/TD] [TD]9.9
[/TD] [TD]6.1
[/TD] [TD]5.1
[/TD] [TD]5.9
[/TD] [TD]3,8
[/TD] [/TR] [TR] [TD]Women
[/TD] [TD]%
[/TD] [TD]10.9
[/TD] [TD]8.4
[/TD] [TD]7.1
[/TD] [TD]5.8
[/TD] [TD]4,4
[/TD] [/TR] [TR] [TD]Average annual net disposable household income
[/TD] [TD][/TD] [TD]
€
[/TD] [TD]29.959
[/TD] [TD]33.584
[/TD] [TD]33.862
[/TD] [TD]34.227
[/TD] [TD]35.699
[/TD] [/TR]
Methodological information
Identity of the survey
The Household Income and Living Conditions Survey (EU-SILC) is conducted on the basis of Regulation (EC) No. 2019/1700 of the European Parliament and of the Council and is used by the European Statistical Office (EUROSTAT) as the main source of comparative data between European Union (EU) Member States on issues related to poverty and social exclusion.
The aim of the survey is to investigate certain socio-economic variables that affect the living conditions of the population, to produce systematic statistics on income inequalities, inequalities in household living conditions, poverty and social exclusion, and to produce structural indicators of social cohesion.
Coverage and data collection
The survey conducted in 2022, with the reference year for income being 2021, covered a sample of 4,128 households in all provinces of Cyprus, in rural and urban areas.
The survey has been conducted since 2005 on an annual basis with a rotating sample of households and consists of two parts (components), the cross-sectional and the longitudinal component. The synchronic component of the survey refers to a given point in time or period, while the longitudinal component refers to changes occurring at the individual level over a period of three or four years.
Data were collected through face-to-face and telephone interviews in households using electronic questionnaires.
Definitions
At-risk-of-poverty or social exclusion rate (AROPE): Risk of poverty or social exclusion rate is the percentage of the population that is below the poverty line or living in households experiencing severe material and social deprivation or living in households with a very low labour intensity index. Each person is counted only once even if they fall into more than one indicator.
The at-risk-of-poverty or social exclusion indicator is the main indicator for monitoring the European Union's 2030 target on poverty and social exclusion. This target is to reduce the number of people at risk of poverty or social exclusion in EU27 countries by at least 15 million by 2030, of whom at least 5 million should be children.
Monetary at-risk-of-poverty threshold: The poverty line is set at 60% of the median equivalent disposable income, calculated by dividing the total disposable income of the household (total net income of all household members after social transfers) by the equivalent household size, obtained by applying the following weights: 1st adult = 1.0 point, other persons aged 14 years and over = 0.5 points and persons under 14 years = 0.3 points.
At-risk-of-poverty rate (AROP): Poverty risk rate is the percentage of people who have income below the poverty line. It measures relative poverty rather than absolute poverty.
Severe material and social deprivation (SMSD): By severe material and social deprivation we mean a population that lacks at least 7 of the following 13 goods, services, or social activities (7 related to the household and 6 at the personal level) due to economic hardship:
At the household level:
1) financial inability to meet extraordinary but necessary expenses,
2) financial inability to pay for a week's holiday,
3) delay in paying fixed bills (electricity, water, etc.etc.), rent or instalments of main house loans or instalments of other loans,
4) financial inability to have a diet that includes chicken, meat, fish (or equivalent vegetarian meal in nutritional value) every other day,
5) financial inability to have adequate heating,
6) financial inability to own a car,
7) financial inability to replace worn or damaged furniture,
7) financial inability to replace worn or damaged furniture.
On a personal level:
Financial inability to:
1) have an internet connection,
2) replace worn clothing with some new clothing,
3) have 2 pairs of shoes in the correct size (including one pair for all weather conditions),
4) spends a small amount of money each week on himself/herself,
5) regularly participates in recreational activities,
6) meets with friends/family (relatives) for drinks/meals at least once a month.
The 6 items that are at the personal level are only collected for people 16 years and over. For children under 16, an estimate is made using the rule: if at least half of the adults in the household lack an item, it implies that the children in that household also lack that item.
Very low work intensity index (LWI): The percentage of persons aged 0-64 living in households where adults 18-64 worked less than 20% of their working capacity in the previous year. Adults exclude students 18-24, persons who reported being retired or receiving any pension (except widow's pension) and persons aged 60-64 who reported being economically inactive and living in households whose main income is any pension (except widow's pension).
Social transfers: These are social benefits and pensions. Social benefits include state social assistance such as minimum guaranteed income, maternity benefit, child benefit, single parent benefit, disability benefit, unemployment benefit, elderly care benefit, etc. Pensions include pensions for old age, widowhood, orphanhood, disability, etc.
For more information, interested parties can visit the Statistics Service Portal, under Living Conditions and Social Protection, Predefined Tables (Excel), Methodological Information or contact Mr. Charalambos Charalambous at 22602241 or at chcharalambous@cystat.mof.gov.cy, or Ms. Dimitra Kostas at 22605112 or at dcosta@cystat.mof.gov.cy.
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Views & opinions expressed are those of the author and/or PIO
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