Background information

The scheme addresses businesses who have partially suspended their operation, whose turnover declined more than 25% in March 2020 due to the COVID-19 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 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.

Content of 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.

Use of measure

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.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social partners jointly Trade unions Company / Companies Social insurance	National funds

Social partners

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 jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

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.

Views and reactions

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.

Sources

• 16 March 2020: 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' (www.mof.gov.cy)
• 07 April 2020: Special scheme for the partial suspension of business (www.coronavirus.mlsi.gov.cy)
• 13 April 2020: Decree 188, 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' (www.mof.gov.cy)
• 23 April 2020: Τη λήψη επιπρόσθετων μέτρων στήριξης των εργαζομένων αποφάσισε το Υπουργικό Συμβούλιο (www.pio.gov.cy)
• 13 May 2020: Decree 239, 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' (www.mof.gov.cy)
• 20 January 2021: Decree 16/2021 (www.mof.gov.cy)
• 25 February 2021: Decree 84/2021 (www.mof.gov.cy)
• 19 March 2021: Decree 124/2021 (www.mof.gov.cy)
• 08 July 2021: Decree 169 (www.mof.gov.cy)
• 08 July 2021: Decree 219 (www.mof.gov.cy)
• 08 July 2021: Decree 276 (www.mof.gov.cy)
• 23 July 2021: Decree 331 Partial suspension of businesses (www.mof.gov.cy)
• 25 August 2021: Decree 370 Partial suspension of businesses (www.mof.gov.cy)