Insider Economy Redundancies abating in Cyprus

Redundancies abating in Cyprus

The Cyprus state will pay over €0.5 billion in redundancies by end of 2020, according to figures obtained by Phileleftheros.

This expenditure piled up over the last decade – from 2010 to 2020. In fact, it is estimated that over 55,000 employees were made redundant before the end of 2019.

In 2020, the state is expected to pay €27.4 million for redundancies, according to the Ministry of Labour’s budget. Data analysis also shows that, as of 2016, redundancy funds decreased due to a fall in the number of employees made redundant.

At the time of the island’s deep financial crisis, the number of redundant staff was almost double with the state having to pay over €100 million in redundancies within a year.

Specifically, redundancy payments are estimated to have exceeded €27 million in 2019. In 2018, the state handed out €25.4 million to redundant employees. This was essentially at 1999 levels.

In addition, the state allocated €28.1 million in 2017 for redundancies, €52 million in 2016 and €49 million in 2015. In 2014, €99.5 million was paid put and €88.5 million in 2013.

Increased amounts were also handed out in 2012, amounting to €54.4 million. In 2011, the amount paid was €30.8 million and another €27.8 million in 2010.

At the same time in 2012, the maximum amount the state paid out was €51,605 and €50,449 in 201. As for  2010, the maximum amount was €48,990, in 2009 it was €46,529 and € 44,529 in 2008.

Under the law on employment termination, the maximum amount of pay is calculated based on the maximum number of weeks of compensation which is 75.5% of the maximum weekly amount of pay taken into account. This is four times the weekly amount of basic insurable salaries.

In addition, under the Social Security Act, redundancy funds are paid to employees who have been under the same employer for 104 weeks before their retirement age.

The amount of payment is proportional to the time of continuous employment and corresponds to three weeks per consecutive year of work.

Redundancy funds are made available three months after the employment termination.


Read more:




Top Stories

122 new cases, one death announced on Friday

The Health Ministry announced the death of one person due to COVID-19. This raises the death toll from the virus in Cyprus to 179,...

Where to get antigen rapid tests on Saturday

The Health Ministry announced the following antigen rapid test sites for Saturday, 23 January 2021: LIMASSOL Grigoris Afxentiou Square 08:30-16:30 Gafkos Clerides Park, Germasoyia 08:30-16:30 Municipal Hall Ypsonas...

Civil servants’ trade union requests psychological support for health professionals

PASYDY, the civil servants’ trade union requested psychological support for health professionals due to the consequences of COVID-19 on their health. The trade union noted...

Scientific advisory committee to convene on Monday under President Anastasiades

Cyprus President, Nicos Anastasiades, will preside on Monday morning over a meeting of the scientific advisory committee on COVID-19. According to CNA information, during the...

Polish medics depart for Slovakia to help mass testing

A group of 200 Polish medics departed for neighbouring Slovakia on Friday (January 22) to help in a week-long testing campaign in the central...


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...