The purpose of the Scheme is to help alleviate the unemployment problem by attracting unemployed individuals who wish to work under some form of Flexible Employment and simultaneously provide businesses with a means to tackle the challenges brought about by the economic crisis in creating new job positions, thereby achieving more effective organization and improving their competitiveness.
Eligible beneficiaries for inclusion in the Scheme are:
- Businesses/organizations in any sector of economic activity that have not reduced their number of employees after the announcement of the Scheme on 19/04/2013 and will create one or more new job positions with flexible arrangements. They must also satisfy the terms and conditions for state aid under the De Minimis Aid Regulation.
- Individuals registered as unemployed with the Public Employment Service and are citizens of the Republic of Cyprus or citizens of any other Member State of the European Economic Area, or those with the same rights as the above, who legally reside in areas controlled by the Republic of Cyprus and have the right to free access to the Republic’s labor market.
In the businesses/organizations that are included in the Scheme, a grant is provided that covers:
- 65% of the labor cost of the individual and travel expenses up to €200 per month, for a period of 8 months, provided that the employment lasts at least 10 months.
- The businesses must have settled all their obligations related to Social Insurance and all their obligations related to Value Added Tax and Income Tax.
- The salary of the employed individual must not be lower than €870, with an increase provided after 6 months of employment, according to the Scheme.