Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure CY-2020-12/330 – Updated – measures in Cyprus
|Country||Cyprus , applies nationwide|
|Time period||Temporary, 16 March 2020 – 31 August 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|
|Measure added||07 April 2020 (updated 14 October 2021)|
The scheme addresses businesses who have partially suspended their operation, whose turnover declined more than 25% in March 2020 due to the Coronavirus Pandemic and are projecting a corresponding drop for April 2020, as compared to the corresponding months of the previous year. For business that were not active in the previous year, the basis of comparison will be the months proceeding March 2020. The Scheme is in accordance with Decree 131 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'.
On Wednesday 8 April, the President of the Republic announced the decision of the Cabinet to extent the measure up until 12 June 2020. Currently, the Ministry of Labour undertakes a legal and technical processing of the measure.
The basic requirement for participation in the scheme is that no employee has been fired. Business participating, in addition, should not dismiss any employee during the participating period, during an additional month equal to the period of participation and plus one additional month.
Businesses up to 50 employees may join the scheme by declaring the 75% of their total number of employees to receive the special unemployment benefit. Similarly, businesses employing more than 50 employees may declare 60% of their total number of employees.
The maximum amount for a period of a 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. 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.
An additional amendment to the scheme is the inclusion of persons over 65 years of age who do not receive statutory pension and continue to work.
Currently, there is not an estimation for the beneficiaries of the scheme. The amount corresponding to the scheme is €182 million covering also the scheme for the complete suspension of business, Decree 130 of the Quarantine Law, Chapter 260.
Employees in standard employment
||Applies to all businesses||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’ organisations – 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 partial suspension of business, measure CY-2020-12/330 (measures in Cyprus), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CY-2020-12_330.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.