Factsheet for case CY-2020-11/327 – Updated – measures in Cyprus
|Country||Cyprus , applies nationwide|
|Time period||Temporary, 11 March 2020 – 31 March 2021|
|Type||Legislations or other statutory regulations|
Employment protection and retention
– Income support for people in employment (e.g. short-time work)
|Author||Loucas Antoniou (INEK) and Eurofound|
|Case created||07 April 2020 (updated 05 May 2021)|
The scheme addresses businesses who have completely suspended their operation, in accordance with the Decree 130/2020 of the Law 27(1) 2020 'Emergency Measures taken by the Ministry of Labour, Welfare and Social Insurances for the Confrontation of the Pandemic of Coronavirus COVID 19'. It includes hypermarkets, shopping malls, cafeterias, libraries, sport centers, thematic parks, hairdressing saloons, barber shops, night clubs and pubs, etc.
The basic requirement for participation in the Scheme is that no employee has been fired since 1 March 2020. Additionally, businesses participate in the Scheme should not dismiss any employee during the period of participation, during an additional equal period of participation and plus one additional month after the end period of participation.
For companies employing more than nine employees, a Special Unemployment Benefit will be paid to 90% of employees, provided the terms and conditions are met. The remaining 10% shall include managing shareholders, partners holding more than 20% of the shares, general managers and senior executives. For businesses employing up to nine employees, Special Unemployment Benefit may be paid to all employees of the business, irrespective of their status
The maximum amount that may be paid for a period of month may not exceed €1,214.
On the 23 April 2020, the Cabinet amended the calculation of the payable amount to the beneficiaries in order to support as many employees as possible. For the purpose of paying the Scheme, the insurable earnings of the year 2018 will be taken into account, but in addition, a comparison will be made based on the declared salary of January 2020. The payable amount will be the highest amount that results from this comparison.
Additionally, a minimum payable amount of €356 has been defined for beneficiaries. Also, a special plan will be implemented for employees who first started work in February and March 2020.
The Scheme includes persons over 65 years of age who do not receive statutory pension and continue to work.
In addition, those for whom the regular unemployment benefits from the Social Insurance Fund have been completed, may join the Scheme to receive a Special Unemployment Allowance.
The budget available for the scheme is €182 million (covering the Scheme for the partial suspension of business Decree 130) but there is no estimation of the number of beneficiaries at this moment.
Employees in standard employment
Sector specific set of companies
|Does not apply to citizens|
Social partners jointly
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Agreed (outcome) incl. social partner initiative||Agreed (outcome) incl. social partner initiative|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners – trade unions and employers’ organisation – at the peak level were invited by the Minister of Labour, Welfare and Social Insurable to participate in consultation process during the designing phase of the Scheme. Political parties have been also invited in the consultation process during the designing of the Scheme. Sectoral trade unions and smaller organisations of the employers did not participate in the consultation process.
Social partners and political parties encouraged the government to take such measures targeting the needs of different categories of workers based on their special conditions as formed by the pandemic. Reactions and disagreements on the scheme or on particular provisions have not been recorded. On the contrary, social partners appear satisfied with the measure and supportive to the government.
Eurofound (2020), Special scheme for complete suspension of business, case CY-2020-11/327 (measures in Cyprus), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.