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 include subsidised holidays for low-income pensioners as well as, through the Central Holiday Fund, for employees, at accommodation facilities in mountain areas and in Pyrgos Tyllirias area. The programs have a dual objective: on one hand to provide quality services to beneficiaries, and on the other to support the country’s mountain resorts, which provide significant support to the communities where they are located.
Ministry of Labour official, Michalis Loizou, told CNA that more than 7,500 applications were submitted this year for the subsidised holiday programme for low-income pensioners. According to press releases issued by the Department, applications were open for 23 days and were suspended once they exceeded the available funding.
For 2026, the amount allocated was pound 1.165 million. According to Loizou, 5,400 applications were ultimately approved, corresponding to subsidised holidays for 6,400 people. He said that applications which did not meet the income criteria were rejected, while the available funding was allocated to eligible applicants on a first-come, first-served basis. ‘Due to high demand, the funding was not sufficient,’ he said.
Asked whether beneficiaries are satisfied with the programme, he said they are ‘fully satisfied, as they get a break from their daily routine.’
This year, 18 hotels are participating in the programme. Under the scheme, each person receives a subsidy of pound 57.50 per night, which includes full board accommodation. The programme covers up to three overnight stays from June to September, excluding August.
Loizou noted that participating hoteliers are satisfied, as they rely to a considerable extent on the scheme for support. However, he said consultations have taken place because they would like to see an increase in the compensation amount due to increased prices. He explained that the amount increased last year from pound 55 per person per night to pound 57.50. However, since the available budget remained unchanged, fewer beneficiaries were able to benefit.
Meanwhile, Ministry of Labour official, Andreas Sofokleous, referred to the employee holiday subsidy programme through the Central Holiday Fund, whose beneficiaries are those enrolled in the Fund.
For 2026, the available budget amounts to pound 936,000, compared with pound 918,000 in 2025. This year, 2,111 applications were submitted. However, as the programme is still ongoing, final figures on the number of beneficiaries are not yet available.
In 2025, 2,133 applications were submitted, of which 1,658 were approved. Of these, 532 chose not to use the programme, resulting in a total of 1,126 subsidised applications, corresponding to 3,092 people.
The programme includes options at 17 hotels in mountain areas and in Pyrgos Tyllirias, regions facing sustainability challenges, as he explained.
According to Sofokleous, most beneficiaries report being satisfied with the accommodation and meals provided.
Under this particular programme, each person receives a subsidy of pound 55 per night, for up to five nights. The list of available hotels states the overnight price in advance. If one of the hotels is more expensive, the beneficiary knows beforehand that they must cover the difference.
As Sofokleous told CNA, in addition to the employee holiday subsidy programme, the Central Holiday Fund also pays annual holiday allowances to employees whose employers make the relevant contributions.
Furthermore, the Central Holiday Fund subsidises trade union holiday resorts. Specifically, he said that in 2026 a budget of pound 859,000 was allocated.
In addition to the above, there is also a scheme subsidising holidays for people with disabilities, operated by the Department for Social Inclusion of Persons with Disabilities under the Deputy Ministry of Social Welfare, which applies throughout the year.
Many employees, both in the public and private sectors, also benefit from holiday facilities operated by their trade unions in various parts of Cyprus, as well as from the welfare funds of their organisations.