Factsheet for case CY-2020-24/895 – Updated – measures in Cyprus
|Country||Cyprus , applies nationwide|
|Time period||Temporary, 13 June 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||29 June 2020 (updated 05 May 2021)|
The new support package of government consists of five special schemes that aim to support the Cypriot economy, workers and the businesses, in particularly, to address the consequences emanated by the crisis of the pandemic and to stay afloat. They have been issued by the Minister of Labour, Welfare and Social Insurance with the Decrees 269, 270, 271, 272 and 273 of the Law for Emergency Measures for the Confrontation of the Pandemic of COVID-19 (2020).
This measure has the following contents:
The basic requirement for participation in the four schemes is that no employee has been dismissed since 1 March 2020 and up until 31 October 2020. The maximum amount to be paid is €1,214 and minimum €360.
The fifth scheme targets the unemployed, who have exhausted their right to receive an unemployed benefit. Beneficiaries will be eligible to receive a lump sum of €360.
The budget of the bundle of the five new measures is €150 million. According to the joint press conference of the Minister of Finance and the Minister of Labour, Welfare and Social Insurances around 50,000 beneficiaries are expected for the five schemes for the period 13 June to 12 October 2020.
Employees in standard employment
Sector specific set of companies
|Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners - trade unions and employers’ organisations - participated in the structural dialogue for the design of the measure following the invitation of the Minister of Labour, Welfare and Social Insurances. They have been asked to submit their proposals, which they have taken into account to a great extent. The finalization of the measure has been drawn by the Ministry based on the feedback received from social partners.
The reactions of both trade unions and employers' organizations as well as the reaction of political parties on the announcement of the measure are very positive. They all believe that the measure is another step in the right direction for the support of the economy and SMEs, in particular, in order to stay afloat and avoid dismissals but the increase of unemployment rate at the same time.
|Economic area||Sector (NACE level 2)|
|C - Manufacturing||C10 Manufacture of food products|
|C11 Manufacture of beverages|
|F - Construction||F41 Construction of buildings|
|F42 Civil engineering|
|F43 Specialised construction activities|
|G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles||G46 Wholesale trade, except of motor vehicles and motorcycles|
|I - Accommodation And Food Service Activities||I55 Accommodation|
|I56 Food and beverage service activities|
|M - Professional, Scientific And Technical Activities||M73 Advertising and market research|
|R - Arts, Entertainment And Recreation||R90 Creative, arts and entertainment activities|
|R93 Sports activities and amusement and recreation activities|
This case is not occupation-specific.
Eurofound (2020), Special support schemes for workers and businesses , case CY-2020-24/895 (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.