Cyprus: COVID-19 Measures for Small and Medium Sized Businesses

Cyprus: COVID-19 Measures for Small and Medium Sized Businesses

The Cypriot Government has revealed a series of measures aimed at assisting small and medium sized businesses address the adverse effects of the Covid-19 crisis.

Unveiled on 15 March 2020, the below measures are being rolled out across Cyprus to help companies during the current state of emergency:

GHS (General Healthcare System)

The contributions to cover outpatient and inpatient care was planned to increase to 2.65% for employees and pensioners, 2.90% for employers, 4.70% for the government and 4% for the self-employed. The Government has now announced that employers and employees will not be liable to pay the increased contributions to the GHS for April and May 2020.

Granting of Special Leave

Parents working in the private sector will be granted “Special Leave” to remain at home to care for children up to 15 years of age. Special Leave can last up to four weeks for a salary of up to €2,500:

  • 60% of the salary will be paid for the first €1,000 of the parent’s salary, and
  • For the next € 1,000 of the salary, a 40% allowance will be paid.

Special Leave is granted to one of the two parents, not both. For single parent families, the rate of payment of the allowance is set at 70% and 50%, respectively.

Business Support Plan

Small businesses that employ up to five people, maintain their employees at work and have reduced turnover by more than 25% will be entitled to 70% of employee salaries from the state. The full terms and conditions of this scheme will be announced shortly.