Factsheet for measure
CY-2020-12/343
–
Updated
– measures in Cyprus
Special scheme for self-employed workers
Ειδικό επίδομα αυτοτελών εργαζομένων
Background information
The Scheme addresses self-employed workers who have fully suspended their operations and self-employed workers who have partially suspended their operations in accordance with the Decree 127 of the Quarantine Law, Chapter 260 of the Minister of Health. It excludes self-employed workers that their financial activity has not been particularly affected by the crisis such as doctors, pharmacists, operators of medical appliances, grocers, kiosk owners, manufactures of daily products and veterinarians.
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 prerequisite for participation in the Scheme is that no employee have been fired since 1 March 2020. Additionally, participants in the scheme should not dismiss any employee during the period of participation, during an additional period equal to the period of participation and plus an extra month.
The special allowance will be equal to the 60% of the amount of the weekly total of insurable earnings, based on which the beneficiary had the obligation of paying contributions to the Social Insurance Fund for the fourth trimester of 2019.
The allowance cannot amount less than €300 to a period of 4 weeks with the maximum limit of €900 for the same period.
Self-employed who employ other workers may also submit on behalf of their employees an application for the Schemes for Complete or Partial Suspension of operations.
Updates
The following updates to this measure have been made after it came into effect.
|
02 October 2020
|
Decree 129 lists the professions that are excluded from the scheme because their economic activities have not been affected by the pandemic such as: Pharmacists, microbiologists, physicians, veterinary physicians, insurers, medical equipment operators, grocers, minimarket and kiosk sales persons, diary producers and educators in the State institutes, which are eligible for a special allowance from the Ministry of Education. Decree 186/2020 removes veterinary physicians, insurers, grocers, minimarket and kiosk sales persons and diary produces from the list.
|
Use of measure
The estimation is that 40,000 self-employed workers may be benefited from the Scheme. The total budget available is €20 million.
Target groups
|
Workers
|
Businesses
|
Citizens
|
Self-employed
|
Does not apply to businesses
|
Does not apply to citizens
|
Actors and funding
|
Actors
|
Funding
|
National government
Social partners jointly
Trade unions
Employers' organisations
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’ 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.
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 129, 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 self-employed workers
(www.coronavirus.mlsi.gov.cy)
-
13 April 2020: Decree 186, 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)
-
13 May 2020: Decree 237, 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)
