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Factsheet for measure CY-2020-31/1200 Updated – measures in Cyprus

Special scheme for certain categories of self-employed

Ειδικό σχέδιο ορισμένων κατηγοριών αυτοτελών εργαζομένων

Country Cyprus , applies nationwide
Time period Temporary, 01 August 2020 – 31 October 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
Author Loucas Antoniou (INEK) and Eurofound
Measure added 29 September 2020 (updated 19 January 2022)

Background information

This is another scheme within the frame of the emergency measures taken by the government to confront the consequences of the pandemic aiming to support the self-employed with a special allowance. 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' , Decrees 398 & 423.

Content of measure

The scheme addresses the following particular categories of the self-employed that are not employers and are registered in the social insurances’ registry as self-employed:

  1. Photographers,
  2. Car rental owners,
  3. Tour guides and escorts,
  4. Taxi drivers,
  5. Tourist bus drivers,
  6. Itinerant food sellers, and
  7. Non-food itinerant sellers (excluding itinerant lottery sellers).

The basic criterion for participation is a 40% reduction of revenue of the self-employed for the period that the self-employed is applying for support in compared with the last year’s same period. The Scheme excludes the self-employed over 65 years of age that do not receive statutory pension and are not bounded, in accordance with the law, to pay contributions to the social insurances fund.

The special allowance is determined to be 60% of the weekly insurable earnings of the beneficiary of the fourth quarter of 2019.

The maximum amount to be paid to beneficiaries is €900 for a four-week period and the minimum €300.

Updates

The following updates to this measure have been made after it came into effect.

26 October 2021

Decree 434 extends the covering period of the measure until 31 October 2021, which signifies the last period of the implementation of the measure.

27 September 2021

Decrees 333/2021, 372/2021 & 405/2021 extend the covering period of the measures until 30 September 2021.

08 July 2021

Decrees 171/2021, 221/2021 & 277/2021 extend the covering period of the measure until 30 June 2021.

09 April 2021

Decrees 18/2021, 86/2021 & 126/2021 extend the covering period of the measure until 31 March 2021.

The Decrees also provide the extension of the list of beneficiaries of the scheme by including the self-employed persons in the hotels, the self-employed persons that their businesses have been fully suspended by the law and the self-employed that their businesses have been fully suspended by the law but still able to operate by distance or provide delivery services.

29 December 2020

The Scheme has been extended with the Decree 636, published on 29 December 2020, covering the period 1 to 31 December 2020. The provisions of the Scheme as well as the categories of self-employed that are covered by the Scheme remain the same.

Information on the use of the Scheme, as well as for the other Schemes under the Ministry of Labour, Welfare and Social Insurances, still not available despite that we requested to receive the relevant information many times since the first updates we made.

Use of measure

No information is available for the moment on the number of beneficiaries of the scheme and its effectiveness.

Target groups

Workers Businesses Citizens
Self-employed
Particular professions
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Trade unions
Employers' organisations
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
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:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners – trade unions and employers’ organisation – at 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. Sectoral trade unions and smaller organisations of the employers did not participate in the consultation process.

Views and reactions

Social partners are in favour of schemes, such as the current scheme, addressing the needs of particular 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.

Sectors and occupations

This case is not sector-specific.

    • Occupation (ISCO level 2)
      Sales workers
      Drivers and mobile plant operators
      Legal, social and cultural professionals
      Street and related sales and service workers

Sources

Citation

Eurofound (2020), Special scheme for certain categories of self-employed, measure CY-2020-31/1200 (measures in Cyprus), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CY-2020-31_1200.html

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