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:

https://in-cyprus.com/high-compensation-packages-for-new-boc-redundancies/

 

 

 

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