Around 9,500 people benefit every year from the Ministry of Labour and Social Insurance holiday subsidy schemes, but demand remains significantly higher than the available funding, according to a Cyprus News Agency survey.
The schemes support low-income pensioners and employees covered by the Central Holiday Fund, offering subsidised stays at hotels in mountain areas and in the Pyrgos Tyllirias region.
The aim is twofold: to provide affordable holidays for people with limited financial resources and to support mountain resorts and local communities.
More than 7,500 applications from low-income pensioners
This year, more than 7,500 applications were submitted for the holiday subsidy scheme for low-income pensioners, according to Ministry of Labour official Michalis Loizou.
The application process remained open for 23 days and ended after the number of applications exceeded the available budget.
For 2026, funding of €1.165 million was allocated, allowing 5,400 applications to be approved, covering 6,400 beneficiaries.
Applications that did not meet the income criteria were rejected, while the available funds were distributed to eligible applicants on a first-come, first-served basis.
“Due to the high demand, the funding was not enough,” Mr Loizou said.
Further funding increases considered difficult
Asked whether there was room to increase funding in future years, Mr Loizou said this would be difficult.
In previous years, the initial budget stood at €700,000 and was strengthened through savings and additional allocations from the Ministry of Finance.
However, over the past two years, total funding has come entirely from the Ministry of Labour’s budget, without additional contributions from the Ministry of Finance.
He said the budget had already increased significantly, while beneficiaries appeared “fully satisfied” as the programme allowed them to take a break from their daily routine.
Up to three nights for pensioners
The scheme currently includes 18 participating hotels.
The subsidy amounts to €57.50 per person per night and covers accommodation and full board.
Each beneficiary can receive support for up to three nights between June and September, excluding August.
Participating hoteliers said they were satisfied with the scheme, as they rely significantly on the demand it creates.
However, they have requested a further increase in compensation due to rising costs for products and services.
The subsidy was increased in 2025 from €55 to €57.50 per person per night. Since the overall budget remained unchanged, the increase resulted in fewer beneficiaries being covered.
Employee scheme funded with €936,000
A separate holiday subsidy scheme operates through the Central Holiday Fund for employees registered with the fund.
For 2026, available funding stands at €936,000, compared with €918,000 in 2025.
A total of 2,111 applications were submitted this year, but the programme is still ongoing, and final beneficiary numbers are not yet available.
In 2025, 2,133 applications were submitted, with 1,658 approved. Of those approved, 532 people did not eventually use the scheme.
As a result, 1,126 applications were subsidised, representing 3,092 people.
According to Ministry of Labour official Andreas Sofokleous, most rejected applications involved people who were not registered with the Central Holiday Fund or had already participated in the scheme the previous year.
Up to five nights at 17 hotels
The employee scheme includes 17 hotels in mountain areas and Pyrgos Tyllirias, where businesses face sustainability challenges.
The subsidy amounts to €55 per person per night for up to five nights.
Hotel prices are listed in advance in the official catalogue. If the accommodation cost exceeds the subsidy amount, the beneficiary covers the difference.
Mr Sofokleous said most participants reported being satisfied with their accommodation and meals.
The programme has operated since 1972 and contributes both to helping employees use their annual leave and supporting the survival of mountain resorts and Pyrgos Tyllirias.
The only period when it was not implemented was between 1974 and 1976.
€859,000 allocated for union holiday centres
Beyond holiday subsidies, the Central Holiday Fund pays annual leave benefits for employees whose employers contribute to the fund.
It also provides funding for trade union holiday centres.
For 2026, €859,000 was allocated, distributed with 45% going to PEO, 45% to SEK and 10% to DEOK.
A separate holiday subsidy scheme for people with disabilities also operates through the Department for Social Inclusion of Persons with Disabilities under the Deputy Ministry of Social Welfare, covering holidays throughout the year.
In addition, public and private sector employees can use holiday centres and welfare funds operated by trade unions and organisations where they work.
Also read: Large families claim €80m cut in support since 2012
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