Social insurance contributions have just gone up, but third-country nationals who pay their dues are not entitled to the same pension as Cypriots or EU nationals.
Foreign workers from third countries are seeing their contributions to the Social Insurance Fund being flushed down a black hole, as the vast majority never collect a pension as in order to be eligible they have to work 15 years uninterruptedly in Cyprus.
“It’s a rip-off and the Ministry of Labour is intentionally not taking any measures to remedy the situation,” said Doros Polycarpou, the head of immigrant support group KISA.
He said that Cyprus has, on several occasions, received notice from EU Human Rights Commissioners and the UN that the Republic needs to take action and rectify the injustice being carried out.
“According to the Single Permit Directive issued by the European Commission, the Republic has an obligation to provide equal access to social service benefits,” Polycarpou said.
He added that this is also in violation with agreements signed with the International Labour Organisation (ILO), a United Nations agency that sets international labour standards and promotes social protection and work opportunities for all.
“Workers from third countries, especially countries like Sri Lanka, the Philippines and Vietnam have been working and contributing to the Social Insurance Fund for more than two decades now. The vast majority of their contributions has remained in the fund to be used as seen fit by the state,” Poylcarpou said.
He said one way the problem could be solved is for Cyprus to sign interstate agreements with third countries allowing the transfer of contributions to the SIF of the worker’s country of origin.
He suggested the republic could give foreign workers a lump sum from their contributions when they finish working in Cyprus or send them a symbolic pension once they reach retirement age.
“Even a few tens of euros could make the world of difference for people returning home where poverty is widespread”.
The ministry continues to turn a blind eye and ignore pleas from third countries to sign such agreements, Poylcarpou claims.
“The reason behind this is the vast amount of money being poured into the fund by foreign workers. We estimate that the last few years EUR 3-4 mln in contributions have been entering the fund on an annual basis.
“If you consider that a decade ago workers from third countries represented 18% of the workforce in Cyprus, you can get a rough idea of how much money has been accumulated in the SIF from the foreign worker’s contributions,” said Polycarpou.
He said people should think twice when arguing that third country workers are a burden on the state.
Even those workers who have completed the 15 years of contribution demanded by law, authorities still give them a hard time when they apply for a pension.
“There are cases where people are going to and from the courts in efforts to obtain their rights to receive the pension that they had worked so many years for.”
Sri Lanka
Pieris Pieri, the Honorary Consul of Sri Lanka told the Financial Mirror that this is an injustice being carried out ever since the first workers from Asia arrived on Cyprus.
“Very rare are cases where foreign workers are allowed to stay for 15 years and if there is no interstate agreement with Cyprus, which is the case for the majority of Asian countries, then these people are not eligible for a pension from Cyprus,” said Pieri.
He added that at best, foreign workers from Sri Lanka, who are mainly housemaids, stay for two-to-six- year terms with usually an interval in between.
The Honorary Consul of Sri Lanka said that efforts for the signing of an interstate agreement with Cyprus have fallen through.
He said that an understanding has been reached but it has not been signed yet.
“Reasons presented for the delay usually have to do with the political instability and frequent changes in the political leadership of the country”.
He added that the civil war with the Tamil Tigers may have also played a role in Cyprus being sceptical.
“However, the two sides need to get together and find a solution to end this injustice carried out against people working and contributing to the Cypriot society and the SIF.”
Pieri said there are currently around 5,500 men and women from Sri Lanka working in Cyprus.
Shemaine Alonso Bushnell-Kyriakides, Honorary Consul for the Philippines in Cyprus, also pointed out that many workers from third countries are not informed of their right to claim a pension even if they complete the necessary time.
She said that even when they are informed of their right to claim a pension, they encounter difficulties at social services with officials there not always willing to help.
“To make things worse all forms are in Greek and they are not able to fill them out,” said Kyriakides.
“Workers from third countries are also deprived of various benefits given by the SIF. For example, these workers are not insured in case of death while they are working in Cyprus.”
Kyriakides added that the Philippines are pushing for an agreement with the Cyprus government in the hope to put an end to this injustice for Filipino workers who amount to around 9,000.
Asked to comment on what happens to social insurance premiums paid by workers from third countries the Ministry of Labour, said contributions which are not paid out remain in the fund and used for the benefit of eligible pensioners.
A high-ranking official of the Social Insurance Department told the Financial Mirror that the Ministry does not believe any injustice is carried out against a certain group of people as the law is the same for all contributors.
“It is a collective scheme, similar to schemes applicable in other EU member states. The only way that contributions can be transferred to the countries of origin of the workers is if there is an interstate agreement. However, for one to be adopted it has to be for the mutual benefit of both sides,” said the official.
It is understood by the Financial Mirror there are virtually no Cypriots working in countries like the Philippines or Sri Lanka, this may be an impediment for signing such agreements.
Although it must be noted that Cyprus has such interstate agreements with countries such as Australia and Canada, while there is a very limited number of Australians or Canadians working in Cyprus.
