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PKF Cyprus

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New government decisions to address the impact of the Coronavirus (Covid 19) on businesses and employees

4 Business and Self-Employment Plans have been prepared and will be directly promoted by the Government in the context of measures to support the economy from the effects of coronavirus.

The final form of the Plans was finalized during a teleconference between Labor Ministers Zeta Emilianidou and Finance Constantinos Petridis, with representatives of parliamentary parties, on the basis of the proposals they had submitted the previous day.

The 4 Business and Self-Employment Plans are as follows:

Scheme 1 – Self-employed

As for the self-employed, the Plan will provide that the state will pay up to 50% of the salary/income of these persons.

 Scheme 2 – Small businesses (up to 5 people)

With respect to small businesses employing up to 5 people, the Plan provides for a 70% subsidy on employee salaries, provided they retain their employees at work and their turnover will be reduced by more than 25%.

Scheme 3 – Mandatory Postpomenent (Due to Orders)

As for the companies, which under the Decrees, have mandatorily postponed their operations, the scheme provides that they will be able to declare 90% of their employees to receive 60% of their salaries from the state

Scheme 4 – Partial suspension or loss of 25% of turnover

Those companies that have partially suspended their operations and those companies that will report a 25% decrease in turnover in March 2020 compared to the same month last year will be able to declare 60% of their staff under 2 schemes described  below:

1) The employee not working and receiving 60% of his salary from the state

2) The employee continues to work and is covered by the state 60% of the salary and the employer reimburses the balance so that the employee receives exactly the same salary as before.

For partial suspension or loss of 25% of turnover 2 conditions have to be met:

First, the company commits that it will not dismiss employees before 6 months have elapsed from the end of the emergency. For example, if the emergency situation ends in June, the company will have to commit that it will not make any redundancies by the end of the year.

Second, the company will not be able to include within the 60% of the employees who will receive the 60% unemployment benefit, its shareholders, CEOs, executives and/or managers.

The employees will only be included in the scheme only if their consent has been obtained.

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PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice