Nicosia: Every year, the holidays of approximately 9,500 people in Cyprus are subsidised through the programmes of the Ministry of Labour and Social Insurance, with demand significantly exceeding the available funding, according to data seen by the Cyprus News Agency (CNA). The programmes aim to support low-income pensioners and employees through the Central Holiday Fund, providing accommodation in mountain areas and Pyrgos Tyllirias. This initiative seeks to offer quality services to beneficiaries while supporting local mountain resorts, which play a vital role in the community's economy.
According to Cyprus News Agency, Ministry of Labour official Michalis Loizou reported that more than 7,500 applications were submitted this year for the subsidised holiday programme targeting low-income pensioners. The application process, open for 23 days, was suspended once the demand surpassed available funding. For 2026, a budget of £1.165 million was allocated, with 5,400 applications approved, covering holidays for 6,400 people. Applications not meeting income criteria were rejected, and funding was distributed on a first-come, first-served basis. Loizou acknowledged that despite high demand, the funding was insufficient.
Beneficiaries have expressed satisfaction with the programme, citing a welcome break from their routine. This year, 18 hotels are participating, offering a subsidy of £57.50 per night per person, including full board accommodation for up to three nights between June and September, excluding August. Loizou noted that participating hoteliers rely significantly on the scheme for support, although discussions have taken place regarding increasing the compensation amount due to rising costs. The subsidy amount increased last year from £55 to £57.50 per night, but the unchanged budget limited the number of beneficiaries.
Ministry of Labour official Andreas Sofokleous highlighted the employee holiday subsidy programme through the Central Holiday Fund, benefiting members enrolled in the fund. For 2026, the budget is £936,000, up from £918,000 in 2025. While 2,111 applications were received this year, final figures on beneficiaries are pending. In 2025, 2,133 applications were submitted, with 1,658 approved and 1,126 utilised, benefiting 3,092 people. This programme offers accommodation in 17 hotels in mountain areas and Pyrgos Tyllirias, regions facing sustainability challenges.
Sofokleous reported that most beneficiaries are pleased with the accommodation and meals provided. The programme subsidises £55 per night for up to five nights, with beneficiaries covering any cost differences for pricier hotels. The Central Holiday Fund also pays holiday allowances to employees whose employers contribute to the fund and subsidises trade union holiday resorts, with a 2026 budget of £859,000.
Additionally, the Department for Social Inclusion of Persons with Disabilities, under the Deputy Ministry of Social Welfare, operates a year-round holiday subsidy scheme for people with disabilities. Employees in both public and private sectors benefit from holiday facilities provided by trade unions and organisational welfare funds in various parts of Cyprus.