COVID-19 Updated Cyprus Government Economic (Support) Measures
The government’s economic support measures in relation to the support of employees and businesses were renewed, expiring on 12 June 2020. These updated measures are set out below.The applications are currently open in relation to the period from 13 April 2020 to 12 May 2020.
- Child Care Scheme
This scheme applies to working parents in the private sector, who are responsible for the care of children up to 15 years old and/or children with disabilities regardless of age.
Persons who (a) cannot work remotely or at home or with flexible working hours and there is no in-house help, (b) are insured with the Social Insurance Services in January, February or March 2020, and (c) do not receive a statutory pension can apply for this scheme, provided that the employer’s consent has been obtained.
If one parent participates in this scheme, the other parent cannot participate for the same period.
The relevant allowance under this scheme is calculated as follows: (a) for the first EUR 1.000 of the monthly salary, an allowance of 60%, and (ii) from EUR 1.000 to EUR 2.000, an allowance of 40%. The minimum allowance is EUR 360 and the maximum allowance is EUR 1.000 for one month.
For single parent families, the above-mentioned rates increase to 70% and 50% respectively, with a minimum allowance of EUR 360 and a maximum allowance of EUR 1.200 for one month.
The employer is relieved from its obligation to pay the salary of its employees who receive the relevant allowance.
Following the government’s decision to reopen all education levels from 21 May 2020, it is unclear whether this scheme will continue until 12 June 2020.
- Special Sick Leave Allowance
This scheme applies to private sector employees or self-employed persons (is) who are on the list of vulnerable groups of people, as designated by the Ministry of Health and cannot work remotely or at home or with flexible working hours, (ii) who are subject to compulsory isolation (quarantine), or self-isolation and cannot work remotely or at home or with flexible working hours with respect to those in self-isolation only, (iii) who are infected with Covid-19, (iv) who are more than 63 years old, don’t receive a statutory pension and fall under the categories (i)-(iii) above, and (v) who are disable, working pursuant to the relevant employment support schemes.
Employees who qualify under the Social Insurance Law (or who commenced work in February or March 2020, provided that they are registered with the Social Insurance Services), are entitled to an allowance at 60% of the value of their insurance units. The minimum allowance is EUR 360, while the maximum allowance is EUR 1.214 for one month.
Self-employed persons are entitled to a weekly allowance which is equal to 60% of the weekly amount of their insurable earnings, based on the income for which they were required to pay contributions to the Social Insurance Fund in the fourth quarter of 2019. If the obligation to pay contributions to the Social Insurance Fund takes place for the first time during the first quarter of 2020, then the allowance amounts to EUR 300 in relation to four weeks (which is the minimum amount of this allowance in relation to self-employed persons).
The employer is relieved from its obligation to pay the salary of its employees who receive the relevant allowance.
- Special Scheme for Self-Employed
The following self-employed natural persons can apply for this scheme, provided that they do not receive a statutory pension:
- persons who have completely suspended their operations according to the Decrees of the Minister of Health and the relevant decisions of the Council of Ministers, provided that the nature and/or the way they operate has not been altered;
- persons whose activities are directly connected with the activities of the businesses that have completely suspended their operations, provided that they have a decrease in their turnover exceeding 80%; and
- persons who have partially suspended their operations, provided that they have a decrease in their turnover exceeding 25% for the months for which they participate in the scheme.
The special weekly allowance equals 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 quarter of 2019. The relevant allowance cannot be less than EUR 300 or more than EUR 900 in relation to a period of four weeks.
If the obligation to pay contributions to the Social Insurance Fund takes place for the first time during the first quarter of 2020, then the relevant allowance amounts to EUR 300 for a period of four weeks.
No employees should have been dismissed since 1 March 2020 and, in case the application is successful, no employees should be dismissed during the period of the scheme, plus a period equal to the period of the scheme, plus one month (except for reasons justifying dismissals without a termination notice).
- Special Scheme for the Complete Suspension of Operations
Any business whose operations have been completely suspended in accordance with the Decrees of the Minister of Health and the relevant decisions of the Council of Ministers, can apply for this scheme, provided that the nature or/and the way it operates has not been altered.
Any business which is directly connected with the activities of the above-mentioned businesses can also apply for this scheme, provided that its turnover decreased by more than 80% in the relevant period.
Affected employees who qualify under the Social Insurance Law are entitled to receive an unemployment allowance of 60% of the value of their insurance units, with a minimum amount of EUR 360 and a maximum amount of EUR 1.214 for one month. Employees who commenced work in February or March 2020 can also receive the relevant allowance, provided that they are registered with the Social Insurance Services.
The employer is relieved from its obligation to pay the salary of its employees who receive the relevant allowance.
No employees should have been dismissed since 1 March 2020 and, in case the application is successful, no employees should be dismissed during the period of the scheme, plus a period equal to the period of the scheme, plus one month (except for reasons justifying dismissals without a termination notice). No employees should be dismissed on economic grounds for this period.
- Special Scheme for the Partial Suspension of Operations
Any business whose operations have been partially suspended can apply for this scheme, provided that such business had a reduction in its turnover of over 25% for the months for which it participates in the scheme.
Affected employees who qualify under the Social Insurance Law are entitled to receive an unemployment allowance of 60% of the value of their insurance units, with a minimum amount of EUR 360 and a maximum amount of EUR 1.214 for one month. Employees who commenced work in February or March 2020 can also receive the relevant allowance, provided that they are registered with the Social Insurance Services.
The employer is relieved from its obligation to pay the salary of its employees who receive the relevant allowance. The employees can work while receiving the relevant allowance (provided that they have agreed to this) and, therefore, the employer must pay to them the remainder of their salary.
No employees should have been dismissed since 1 March 2020 and, in case the application is successful, no employees should be dismissed during the period of the scheme, plus a period equal to the period of the scheme, plus one month (except for reasons justifying dismissals without a termination notice). No employees should be dismissed on economic grounds for this period.
In addition to the above-mentioned schemes, the government has introduced a new special scheme for the support of unemployed persons. Any person who (a) is registered as unemployed to the relevant register, and (b) was receiving an unemployment allowance which ended in February, March or April of 2020 can apply for this scheme. The relevant allowance amounts to EUR 360 for one month.
