Temporary Suspension for Cyprus Tourist industry companies
BY: P. CONSTANTINOU & CO
The Minister of Labor, Welfare, and Social Insurance announced the Plan for Temporary Suspensions of businesses in the Tourism Industry for the Winter Season 2021-2022.
The aim of the emergency measures is to address the seasonality and the effects of the pandemic on the tourism industry for the period from October 31, 2021, to March 31, 2022.
The Plan, which has been established based on the Memorandum of Understanding of the Social Partners for the temporary suspension of the business operations of the tourism industry, includes:
- the Memorandum of Understanding of the Social Partners for the Temporary Suspension of operations of Hotel Units,
- some tourism-related businesses in the area of Ayia Napa/Paralimni and establishments on the coastal front of Paphos,
- tour/travel agents in Cyprus, airport services (handling) companies, coastal shipping companies, water sports companies, and tourism buses.
Each employer from the above categories will have, during the period of suspension, the obligation to pay contributions to the Social Insurance as a percentage of their salary at a rate of 10% for each employee, except for hotels which pay contributions at a rate of 2,8% on salaries.
The admission assessments will be done as defined in the Third Table of the Law on Social Insurance, that is, based on the year 2020. If the required conditions for the year 2020 are not met, then the assessment will be done based on the year 2019.
The calculation of the amount of unemployment benefit will be done either with reference to the year 2020 or 2019, and each beneficiary will receive the greater of the two amounts.
For anything that is not explicitly mentioned in this Decision, the relevant provisions of the Social Insurance Laws or the Temporary Suspension Plan will apply based on the conditions and handling of the applications by the Social Insurance Services.
Employers must submit the lists of their employees who will be suspended to the District Offices of the Social Insurance Services, the period of suspension of work, and anything else requested in accordance with the instructions of the Director of Social Insurance Services.