Factsheet for case CY-2020-12/330 – measures in Cyprus
|Country||Cyprus , applies nationwide|
|Time period||Temporary, 16 March 2020 – 12 June 2020|
|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 06 May 2020)|
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 of the Quarantine Law, Chapter 260 of the Ministry of Health.
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 euros.
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 euros 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:
The government has consulted the social partners - trade unions, employers' organizations and political parties - and the outcome emerged is on an agreed base.
Eurofound (2020), Special scheme for partial suspension of business , case CY-2020-12/330 (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.