Cyprus Rolls Out Employment Aid for Hotel Industry

Firms must prove their turnover dropped more than 40% in the past year.

Header Image

The Labour ministry on Friday unveiled a targeted support scheme for employment in the hotel sector, aimed at cushioning businesses hit by a drop in activity.

The plan covers hotels and tourist accommodation operating between 1 and 30 April 2026, including units that remained open during the winter season as well as those set to reopen by 20 April.

Up to 80% subsidy

Eligible businesses will be required to apply electronically through the ERGANI system, submitting supporting documentation such as audited confirmation of turnover losses, bank account details and company certification records.

To qualify, firms must show a drop in turnover of more than 40% in April 2026 compared with the same month last year, or occupancy rates below 60%. Approved businesses will be able to subsidise up to 80% of their workforce.

Under the scheme, employees will receive a state allowance covering 30% of their monthly salary, capped at €1,324, with employers required to top up the remaining pay.

The ministry said wages must be updated in the ERGANI system before applications are submitted, as part of employment registration procedures.

Inspections to be carried out

The allowance will count as insurable income, with contributions credited to the Social Insurance Fund. Workers hired between 1 and 20 April will receive a proportional payment, while applications will not be accepted for hires declared after that date.

Special provisions also apply to workers who were laid off between November 2025 and March 2026 and were not covered by existing support schemes. Employers must rehire them through the ERGANI system before applying in order for them to qualify.

Participating hotels will be barred from making staff redundancies until 31 May 2026.

Authorities said compliance checks will be carried out after the scheme ends, comparing declared wages with actual contributions paid for April.

The ministry is expected to announce the application start date in the coming days.

Comments Posting Policy

The owners of the website www.politis.com.cy reserve the right to remove reader comments that are defamatory and/or offensive, or comments that could be interpreted as inciting hate/racism or that violate any other legislation. The authors of these comments are personally responsible for their publication. If a reader/commenter whose comment is removed believes that they have evidence proving the accuracy of its content, they can send it to the website address for review. We encourage our readers to report/flag comments that they believe violate the above rules. Comments that contain URLs/links to any site are not published automatically.