News Local Government considering new incentive schemes to combat unemployment

Government considering new incentive schemes to combat unemployment



The Cyprus government has spent half a billion euros to safeguard jobs and boost liquidity amid the crisis sparked by the coronavirus outbreak, Minister of Labour Zeta Emilianidou has said, adding that the government is considering incentive schemes for companies that hire jobless persons.

Speaking before the parliamentary committee of Labour, Emilianidou said the government aims to utilize between €12 million and €15 million from the Human Resources Development Authority’s budget for training unemployed persons and to utilize funds from the EU Social Fund subsidizing the labour cost for companies  that would hire jobless persons, who may face problems with their employment after October when the government support schemes expire.

The Minister added that the scheme may be launched until the end of July and will be valid for November, December 2020 and the first two months of 2021.

Emilianidou pointed out that subsidy could reach to 90% of the labour cost if a company employs people from the list of registered unemployed persons, on the condition that they have not fired employees or applied salary cuts.

Since the first cases of Covid-19 infections appeared in Cyprus in March, the Cypriot authorities implemented a two-month lockdown and a scheme to support companies which entered into a suspension of business activity. The support scheme was granted horizontally until June while it will apply on a scaled-down basis, mainly for the hard-hit tourism sector and associated activities, depending to the loss of turnover.

Emilianidou said she is not worried by the current level of unemployment because this is associated with employees in the tourism sector who continue to remain unemployed as hotels and other associated activities remain in reduced operation due to Covid-19.

But she expressed concerns on the growth of unemployment after the coming October when the Ministry’s support schemes expire. Under the support schemes a company cannot proceed with layoffs while it is benefiting from government aid.

“We are very worried from the fact that while €500 million have been paid to support employment, a company could begin layoffs when the obligation (not to let employees go) expires,” Emilianidou added.


Top Stories

CYPRA owner: I was not convinced

Speaking before the House Agriculture Committee, George Georgiou, the owner of CYPRA slaughter house said he did not do anything illegal and was not...

U.S. federal agency greenlights Biden’s presidential transition

The U.S. General Services Administration (GSA) on Monday told Joe Biden it was ready to begin the formal presidential transition process for him. GSA Administrator...

Cabinet to decide on Wednesday about measures against COVID-19

Cyprus Government Spokesman, Kyriakos Koushos, has told CNA that the Council of Ministers will decide on Wednesday about what will happen as regards the...

Delays in the arrival of postal items due to decrease of flights

The Cyprus Post would like to inform the public that due to the Coronavirus outbreak, a significant decrease of flights to and from Cyprus...

Cost of electricity to be reduced in 2022, RES fee must be revised

The cost of electricity is expected to be reduced in 2022, as the market opens to competition and the project to bring natural gas...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...