Finance Ministry Issues New Public Sector Leave Rules

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Changes allow eligible employees moving into permanent public posts to retain accrued leave entitlements, with key provisions applying retroactively to 2018.

The Department of Public Administration and Personnel (DPAP) has issued a circular outlining new rules on annual leave in the public sector following parliamentary approval of amending regulations on 9 July and their publication in the Official Gazette on 17 July.

The circular, signed by DPAP Director Elena Oikonomidou Azina, sets out a series of changes affecting employees appointed to permanent positions from other parts of the public sector.

New leave arrangements

Under the amended regulations:

  • Individuals appointed to a permanent public service position after serving in a permanent position in another state service, including the Security Forces, Armed Forces, Public Educational Service or a public law organisation, will retain the number of annual leave days they were entitled to under their previous employment regime. Their years of service will also count towards future leave progression.

  • Individuals appointed to a permanent position after serving as employees of indefinite duration in the public service, another state service or a public law organisation will likewise retain their existing leave entitlement, with previous years of service taken into account for leave calculations.

  • Individuals appointed to a permanent position after serving as hourly paid employees in a public law organisation will retain their previous leave entitlement if it exceeds the entitlement available under the new position. This arrangement will remain in place until their years of service in the permanent position entitle them to the same level of leave under the applicable leave scale.

Retroactive application

The first two provisions apply retroactively from 1 January 2018.

As a result, eligible employees will need to have their accumulated annual leave recalculated and credited with any additional leave days they would have earned from that date, or from a later date corresponding to their appointment to the public service.

The third provision takes effect from 17 July 2026, the date on which the amended regulations were published in the Official Gazette.

Certification required

The circular states that affected employees must provide a certificate from their previous employer confirming:

  • Their employment status before appointment.
  • The annual leave entitlement they received.
  • Their years of service.

Leave accumulation limits

The department noted that implementation of the new arrangements may result in some employees exceeding the standard maximum leave accumulation limit.

However, once an individual's leave balance, maintained on a personal basis, falls below that level, further accumulation beyond the prescribed maximum will no longer be permitted.