The bill, which will be presented to the Cabinet next Wednesday and then to Parliament, will include 17,000 new families among the recipients of the child allowance starting in 2027.
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The increases in the income criteria are significant. For one dependent child, the annual gross family income limit rises from 49,000 to 69,000 euros. For two children, it goes from 59 to 74 thousand, and for three, from 64 to 90 thousand. For families with four dependent children, the limit increases from 69,000 to 100,000 euros, while for five or more children, income criteria continue to not apply.
Income Criteria
One dependent: €49,000 –> €69,000
Two dependents: €59,000 –> €74,000
Three dependents: €64,000 –> €90,000
Four dependents: €69,000 –> €100,000
Five or more dependents: No limit
At the same time, the benefit amounts are increasing.
“A family with only one child today, if their income were below 22,000 in the first category, would receive a benefit of 600 euros. Under the new change—if it is passed by Parliament—they would receive 660. A family with two children would receive 1,438; they will now receive 1,580. A family with three children, which previously received around 4,000 annually, will receive 4,400. A family with four children, which previously received 8,460, will receive approximately 9,300.»
Fanos Kouroufexis – Senior Benefits Management Officer
Another significant change is the elimination of the abrupt reduction of the benefit to zero.
“If, for example, someone had 49,000 and was receiving the benefit for one dependent and got a 50-euro increase, for those 50 euros, they would lose the entire 600-euro allowance for that one child. Now, the other change being made is that when someone’s income increases and they move up to the next income bracket, instead of the allowance being reduced to zero, it is adjusted to 50% or 25%.”
Fanos Kouroufexis – Senior Benefits Management Officer
The cost of the reform ranges from 10 to 15 million euros. Once the bill is passed, current beneficiaries will not need to take any additional action, while new beneficiaries will need to submit an application.
Watch the report by Rafaella Stavrinou:
